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Starcraft Announces New Contract for Tecstar

23 October 2000

Starcraft Announces New Contract for Tecstar; Contract to Design, Tool and Manufacture GM Hummer Accessory Parts

    GOSHEN, Ind.--Oct. 20, 2000--Starcraft Corporation announced today that its Tecstar joint venture has been awarded a contract to design, tool and manufacture a series of accessory parts for the GM Hummer to be sold through General Motors' parts subsidiary. Estimated value of this accessorization program is $10 million. GM's newly introduced Hummer will be manufactured in Mishawaka, Indiana starting in model year 2002. The accessory parts will be provided to dealers as option packages for the Hummer.
    Tecstar is a 50 percent owned joint venture formed with a Detroit engineering company in 1998 to provide engineering and test validation services and the manufacturing of specialty conversion vehicles for OEM customers. Tecstar contributed $63 million in revenues for the first three quarters of 2000, 59 percent of the Company's total revenues.
    "Tecstar continues to win major contracts based on the quality of the final product it delivers and its on-time performance," Kelly L. Rose, Chairman and CEO of Starcraft said. "We are extremely excited to be entering the parts accessory market which presents a great deal of potential in terms of new business and profitability to our Tecstar joint venture. Tecstar has established itself as a leader in the emerging second stage vehicle conversion industry and this represents a nice addition to its base business."