Aluminum Precision Products, Inc. Purchases Kaiser Aluminum Facility; Acquisition of Oxnard Plant Expands Capability to Meet Existing and Future Customer Needs.

Business Editors

SANTA ANA, Calif.--(BUSINESS WIRE)--Dec. 4, 2002

Aluminum Precision Products, Inc. (A.P.P.), the industry leader in aluminum and titanium forged and machined components in a variety of markets worldwide, announced today that the court overseeing Kaiser Aluminum's reorganization under Chapter 11 has approved A.P.P.'s purchase of Kaiser Aluminum's Oxnard, Calif. forging operations.

The acquisition, which includes 150,000 square feet of manufacturing space, will enhance A.P.P.'s capabilities and capacity for hand forgings and mechanical products and markets. With these new capabilities, A.P.P. plans to expand into new markets in addition to improving market share in existing markets.

"We have long admired the Oxnard facility for its variety of equipment and its efficient plant layout," said Philip Keeler, A.P.P. founder and president. "In addition, many of the employees are very knowledgeable in the operating and marketing of their products. We look forward to a long relationship with the personnel, and with the City of Oxnard. It is our objective to grow the business in such a manner as to achieve profitability and acceptable rates of return on our investment."

All of the plant's equipment as well as many of the key personnel will be retained. The acquisition is expected to be completed on Dec. 16, 2002. Manufacturing activities will be suspended for a 3-week transition period through the holidays and will resume on January 6, 2003 under A.P.P. management and ownership. The Oxnard facility will be the company's seventh manufacturing plant. A.P.P. currently operates 660,000 square feet of manufacturing space in facilities in Santa Ana and Garden Grove, Calif., Hampton, Va. and Cleveland, Ohio.

Founded in 1965, A.P.P. is a privately held California corporation and one of the world's largest manufacturers of precision aluminum forgings - highly engineered, close tolerance, complex aluminum structures with capabilities that extend from initial design to final assembly.

Aluminum Precision Products is an important presence in commercial and military aircraft, aerospace, automotive, medical, diesel locomotive, industrial applications and other commercial products. A.P.P. produces forgings and machined parts for every major aircraft manufacturer in the world, and currently exports products to Great Britain, Canada, Spain, France, Italy, Australia, Israel, China, and Japan.

Through its Catalina Cylinders division, the company manufactures and markets high-pressure aluminum gas cylinders for the SCUBA, beverage, medical and Industrial industries and custom impacts for automotive applications.

With approximately 1,000 employees, A.P.P. is a fully integrated manufacturing operation allowing for the production of completed parts and assemblies. Large heat-treating and machining operations play important roles in the process.

For more information about A.P.P. visit the company's Web site at www.aluminumprecision.com.