Drew Industries Acquires RV and MH Chassis Supplier SteelCo

WHITE PLAINS, N.Y., March 13 -- Drew Industries Incorporated today announced its wholly-owned subsidiary Lippert Components, Inc. acquired the business and certain assets of Rialto, Calif.- based SteelCo, Inc. for $4.5 million in cash. The purchase price was funded with borrowings under Drew's line of credit.

SteelCo, which manufactures chassis and component parts for recreational vehicles and manufactured homes, had annual sales of approximately $8 million in 2005. Lippert will occupy SteelCo's factory for about two months, during which time SteelCo's business will be transferred to Lippert's West Coast factories. Lippert has not retained SteelCo's executive management, but hired many of SteelCo's employees.

In connection with Lippert's acquisition of SteelCo, both parties agreed to terminate the litigation instituted by SteelCo against Lippert on July 16, 2002. Consideration for the termination of this litigation, which is less than the $500,000 previously accrued by Drew, was included in the negotiated purchase price.

"The sales that should be generated from this acquisition will be added to our existing factories without significantly increasing fixed overhead, and should therefore be accretive to earnings," said Leigh J. Abrams, Drew's President and CEO.

About Drew:

Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes. Drew's products include vinyl and aluminum windows and screens, doors, chassis, chassis parts, RV slide-out mechanisms and power units, leveling devices, bath and shower units, axles, steps, electric stabilizer jacks, as well as trailers for hauling equipment, boats, personal watercrafts and snowmobiles, and chassis and windows for modular homes and offices. From 47 factories located throughout the United States and one factory in Canada, Drew serves most major national manufacturers of RVs and manufactured homes in an efficient and cost- effective manner. Additional information about Drew and its products can be found at http://www.drewindustries.com/ .