ROCHESTER HILLS, MI -- DURA Automotive Systems has entered into an asset purchase agreement with Atwood Acquisition Co., LLC for the sale of DURA's Atwood Mobile Products division, headquartered in Elkhart, IN. The agreement provides for the acquisition of Atwood Mobile Products for an aggregate cash consideration of $160.2 million.

Atwood offers a broad range of products to the recreation vehicle, specialty vehicle and manufactured housing markets. The division's products encompass windows and doors, specialty glass, hardware appliances and electronics. Founded in 1909, Atwood was acquired by automotive supplier Excel Industries, which was then acquired by DURA in 1999.

Closing of the transaction is subject to the approval of the United States Bankruptcy Court for the District of Delaware, which has jurisdiction over DURA's Chapter 11 reorganization proceedings; government regulatory approvals; and customary closing conditions.

DURA and its domestic and Canadian affiliates filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware in October of 2006. The company and its domestic and Canadian affiliates continue to operate their businesses as Chapter 11 debtors-in-possession.

As a standard element of the bankruptcy process, DURA has filed a motion with the bankruptcy court seeking approval of procedures that will provide an opportunity for competitive bids on Atwood Mobile Products before the sale is approved by the Court. DURA expects to complete the bidding process and to secure the regulatory approvals in time to close the sale by the end of August.

"Atwood is a strong, profitable and growing business, and we are extremely satisfied with the interest we have received in the business," said Larry Denton, DURA's chairman and chief executive officer. "This agreement is a major milestone in our restructuring efforts as it enables the company to position itself to exit Chapter 11 and finish implementing financial and operational strategies to improve our core automotive parts business."

For more information about DURA, go to: http://www.duraauto.com.