Starcraft Corporation Refinancing Completed

18 December 2000

Starcraft Corporation Refinancing Completed

    GOSHEN, Ind.--Dec. 18, 2000--Starcraft Corporation (Nasdaq SmallCap:STCR) announced today that it has signed an amended financing agreement with its primary lending institution.
    The amended agreement increases the Company's financing agreement to $22 million from $14 million. The financing is expected to provide the working capital necessary to support growth over the next year in the Company's Bus and Mobility division and its Tecstar joint venture.
    The agreement provides for asset based lending primarily on the Company's receivables and inventory. The $22 million financing package is comprised of a term loan in the amount of approximately $3.5 million, which matures in November 2001, and a revolving credit facility. The agreement extends the revolving portion of the financing package to December 2005. A portion of the Company's loan is guaranteed by two individuals, one of whom is a director and officer of the Company and the other is currently an outside director. As incentive for their guarantees, the Company issued stock options to purchase a total of 500,000 shares of Common Stock for $3.00 per share. The options have a five-year term and are exercisable at the date of grant. All other significant terms of the original financing agreement remain unchanged.
    According to Richard J. Mullin, Chief Financial Officer, "This new financing agreement comes at an important time for Starcraft. Our Tecstar subsidiary recently opened its third plant in Bridgewater, New Jersey, and its plant in Grand Prairie, Texas is scheduled to re-open in January after an extended shutdown by General Motors for retooling of the Suburban and Tahoe models. In addition, Starcraft needs working capital to support the growth in its Bus and Mobility division."
    Starcraft Corporation is a leading manufacturer of second stage vehicle conversions through its Starcraft, Imperial, Bus, Tecstar and National Mobility divisions. For additional information see the Company's web site at www.starcraftcorp.com or call Richard J. Mullin, Chief Financial Officer, Starcraft Corporation at (219) 533-1105 ext. 239.

    This news release contains forward-looking statements regarding projected revenues, financial capabilities, adequacy of capital resources, profitability and other matters. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, level of customer demand, competitive pressures and other important factors detailed in the Company's annual report on Form 10-K for fiscal year 1999 filed with the Securities and Exchange Commission.