Court Approves DURA Automotive Systems' Backstop Rights Purchase Agreement and Atwood Sale.

Milestones Keep Company on Track to Emerge from Chapter 11 in 2007

ROCHESTER HILLS, Mich. -- DURA Automotive Systems, Inc. (OTC:DRRAQ) today announced that the United States Bankruptcy Court for the District of Delaware approved two important agreements that will help facilitate and finance DURA's emergence from bankruptcy. The Court entered an order approving DURA's asset purchase agreement for the sale of its Atwood Mobile Products division and approved its amended backstop rights purchase agreement. The order for the backstop agreement will be submitted tomorrow under certificate of counsel. These milestones keep the company on track for an expected emergence from Chapter 11 in the fourth quarter of 2007.

"We are pleased with the Court's decision, which enables us to continue on a path toward emergence," said Larry Denton, DURA Automotive's Chairman and Chief Executive Officer. "We have made significant progress with our creditors and other constituencies to foster a consensual reorganization process."

On August 13, 2007, DURA filed an amended backstop rights purchase agreement and related stockholder agreement which reflects a global resolution of issues among the company, Pacificor, LLC and the Creditors' Committee. Under the terms of the amended agreement, upon emergence the company will be privately held with a range of minority shareholder protections. The Court has approved this agreement, which provides an equity backstop commitment of between $140 and $160 million.

Separately, the Court approved DURA's asset purchase agreement with Atwood Acquisition Co., LLC, an affiliate of private equity firm Insight Equity, for the sale of DURA's Atwood Mobile Products division, headquartered in Elkhart, Indiana. The agreement provides for the acquisition of Atwood Mobile Products for an aggregate cash consideration of $160.2 million.

DURA was advised by Miller Buckfire, AlixPartners and Kirkland & Ellis in connection with both the backstop and Atwood sale agreements.

About DURA Automotive Systems, Inc.

DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a leading supplier of similar products to the recreation vehicle (RV) and specialty vehicle industries. DURA markets its automotive products to every North American, Asian 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 is available on the Internet at www.duraauto.com.

Important Securities Act Statement

None of the shares of common stock to be sold in the rights offering or pursuant to the backstop purchase agreement will be registered under the Securities Act of 1933, and, therefore, such shares may not be offered or sold in the United States absent registration or an applicable exemption from registration. DURA expects to offer and sell the shares of common stock in reliance on the statutory exemption from registration in Section 4(2) of the Securities Act or 1933 and/or Regulation D promulgated thereunder. This press release is not an offer to sell or a solicitation of an offer to buy any securities of DURA, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-looking Statements 

This press release, as well as other statements made by DURA may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that reflect, when made, the company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) the ability of the company to continue as a going concern; (ii) the ability of the company to operate pursuant to the terms of the debtor-in-possession ("DIP") financing facility; (iii) the company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; (iv) the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (iv) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; (v) the ability of the company to obtain and maintain normal terms with vendors and service providers; (vi) the company's ability to maintain contracts that are critical to its operations; (vii) the potential adverse impact of the Chapter 11 cases on the company's liquidity or results of operations; (viii) the ability of the company to execute its business plans, and strategy, including the operational restructuring initially announced in February 2006, and to do so in a timely fashion; (ix) the ability of the company to attract, motivate and/or retain key executives and associates; (x) the ability of the company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees; (x) general economic or business conditions affecting the automotive industry (which is dependent on consumer spending), either nationally or regionally, being less favorable than expected; and (xi) increased competition in the automotive components supply market. Other risk factors are listed from time to time in the company's United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2005. DURA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of DURA's common stock receiving no distribution on account of their interest and cancellation of their interests. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing, the company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the company urges that appropriate caution be exercised with respect to existing and future investments in DURA's common stock or other equity interests or any claims relating to pre-petition liabilities.