Arrow Automotive Industries Announces Sale of its Crankshaft Operation and Wind-Down of Remaining Electrical Operation.

MORRILTON, Ark.--(BUSINESS WIRE)--Feb. 15, 1999--Arrow Automotive Industries, Inc. announced the sale of fixed assets and inventory associated with its crankshaft operation to Carolina Crank and Core, Inc., a South Carolina corporation. It further announced its intention to wind down its electrical operation located at its Morrilton, Arkansas facility on or before April 2, 1999.

Arrow filed a voluntary petition for protection under Chapter 11 of the Bankruptcy Code on October 16, 1998. The company was in the process of reorganizing itself in an effort to survive under a plan of reorganization or to find a suitable buyer for its electrical and crankshaft operations. The continued erosion of its customer base since October 16, 1998 combined with unsuccessful negotiations with various potential buyers left the company with no choice but to close its operations. The closure of the Arkansas facility will result in the complete shutdown of Arrow's operations.

"The decision to close this facility is extremely difficult given the employees' dedication and their commitment throughout the years and most recently in their steadfast efforts to reduce operating costs under a plan of reorganization," said Donald Shamsie, Arrow's chief operating officer. "Unfortunately, we have run out of options and time. We now commit to filling our customers' remaining orders as they transition to new suppliers and to help our employees find other employment opportunities."

Arrow's 460 Arkansas-based employees were given notice today that their jobs will end with the plant closing on or before April 2, 1999 with some jobs being eliminated immediately. Arrow will seek available assistance from state and local government agencies and area business organizations in helping find new jobs for the employees.

Arrow Automotive Industries, Inc. remanufactures a variety of replacement parts for domestic and imported vehicles for distribution throughout the United States and Canada.