DURA Automotive Signs Joint Venture Agreement in China with Shanghai G

DURA Automotive Signs Joint Venture Agreement in China with Shanghai Ganxiang Automotive Mirror Group

    Business Editors/Automotive Writers

    ROCHESTER HILLS, Mich.--(BUSINESS WIRE)--Feb. 9, 2005--

New company to supply gear shifter systems to domestic Chinese automakers
    DURA Automotive Systems, Inc. (Nasdaq:DRRA), today announced that it has entered into a joint venture agreement with Shanghai Ganxiang Automotive Mirror Group Co., Ltd. (GAM) to develop, manufacture and sell automotive gear shifter systems for the domestic Chinese market. The new joint venture company will conduct business under the name DURA GANXIANG Automotive Systems (Shanghai) Co., Ltd. The transaction is subject to final business license approvals.
    "Establishing a manufacturing foothold in Asia for all DURA products is a key piece of our global growth strategy and further enhances our multi-geographic flexibility," said Larry Denton, DURA Automotive's chief executive officer. "The DURA GANXIANG joint venture opens significant growth opportunities for us in China's fast-growing shifter systems market."
    China's domestic market for automotive gear shifter systems is predicted to grow from $150 million today to nearly $300 million in 2009.
    "This venture links DURA's world-class technology in shifter and shifter cable systems with GAM's proven proficiency in high-quality automotive components manufacturing and customer support to automakers throughout China," said Xia Daoyu, GAM's chairman. "Combining our strengths will place us in an advantageous position to participate in China's growing domestic automotive market."
    The new venture is majority owned and controlled by DURA, and the board of directors will be comprised of DURA and GAM executives. The parent companies will contribute assets, intellectual property and technical resources.

    About Shanghai Ganxiang Automotive Mirror Group (GAM)

    GAM manufactures automotive components for the domestic Chinese market. Headquartered in Shanghai, privately held GAM was founded in 1958 and now has approximately 1,500 employees. The company makes a wide range of products, including components and assemblies for automotive mirrors, various plastic and metal automotive parts, and automotive shifter systems. GAM currently supplies automotive shifters to major Chinese OEMs such as FAW-VW, Shanghai VW, Shanghai GM, Dongfeng PSA, Hainan Mazda, Nanjing Fiat and China Brilliance. GAM's automotive shifter business is certified as meeting QS9000 and TS16949 quality standards. More information about GAM may be found at www.gam.com.cn.

    About DURA Automotive

    DURA Automotive Systems, Inc., is the world's largest independent designer and manufacturer of driver control systems and a leading global supplier of seating control systems, engineered assemblies, structural door modules and integrated glass systems for the global automotive industry. The company is also a leading supplier of similar products to the North American recreation and specialty vehicle markets. DURA sells its automotive products to every North American, Japanese and European original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products are available on the Internet at www.duraauto.com.

    Forward-Looking Statements

    This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are based on certain assumptions that the company has made in light of its experience in the industry as well as its perspective of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to (i) expected synergies, economies of scale and cost savings from the company's acquisitions not being fully realized or realized within the expected times frames; (ii) unanticipated difficulties servicing the indebtedness of the company; (iii) costs or operational difficulties related to integrating the operations of the acquired entities with those of the company being greater than expected; (iv) labor disputes involving the company or its significant customers; (v) risks associated with conducting business in foreign countries, and (vi) general economic or business conditions affecting the automotive industry, either nationally or regionally, being less favorable than expected.

--30--CR/ms*

CONTACT: DURA Automotive Systems, Inc., Rochester Hills David Bovee/Keith Marchiando, 248-299-7500

KEYWORD: MICHIGAN CHINA INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: AUTOMOTIVE MARKETING AGREEMENTS SOURCE: DURA Automotive Systems, Inc.

Copyright Business Wire 2005