Starcraft and AM General Form Second Stage Manufacturing Company to Enhance Hummer Vehicles; Joint Venture Awarded First Program

GOSHEN, Ind.--Oct. 2, 20045, 2004--Tecstar, a wholly owned subsidiary of Starcraft Corporation of Goshen, Indiana, and AM General LLC, headquartered in South Bend, Indiana, have formed a joint venture company to provide second-stage manufacturing capabilities and design and engineering expertise for low volume OEM needs.

The new venture, named Amstar LLC, will offer a full line of aftermarket accessories that complement the General Motors special equipment packages available for the HUMMER(R) enthusiast. Amstar will offer a range of products that will enhance performance, appearance and the rugged off-road experience for HUMMER owners. These packages will be available through HUMMER dealers.

Amstar, a 50-50 joint venture of Tecstar and AM General, has been awarded its initial program to produce a special-edition HUMMER H2(R). Building on the H2's success, Amstar, in cooperation with General Motors, has taken the best-in-class SUV and incorporated more features and accessories to create a special package designed for the HUMMER enthusiast. The joint venture partners estimate that the venture, starting in July 2005, will generate revenues in excess of $5 million annually from its Fort Wayne, Indiana location.

Mike Schoeffler, Starcraft Co-CEO said, "Tecstar's experience in engineering design and second-stage limited volume manufacturing combined with AM General's expertise with the HUMMER brand and vehicle engineering and production uniquely positions this new venture to offer its customer a complete operation to design, engineer, validate and supply low-volume HUMMER brand specialty vehicle and aftermarket parts."

Rick Smith, AM General Vice President of H2 Operations and Special Projects, said, "This relationship allows for expansion of customization services to the automotive industry. Both companies will share their strengths in support of design, engineering, product development, training, parts fulfillment and customer development of the HUMMER brand. Amstar will provide quick solutions to bridge the gap from ideation to implementation."

"This partnership will present new opportunities to HUMMER owners," said Susan Docherty, General Motors HUMMER General Manager. "Our customers are always looking for new ways to enhance the HUMMER experience with quality accessories."

About AM General: AM General is a world leader in the design, engineering, production and parts support of military and special purpose vehicles. Its production facilities, located in Mishawaka, Indiana, are among the most innovative and technologically advanced in the industry. AM General has manufactured the Humvee(R) for the military since 1985. The company also assembles the HUMMER H1 and H2 which are marketed by General Motors. More information can be found at AM General's website, www.amgeneral.com

About Starcraft: Starcraft Corporation is a leading supplier to the OEM automotive supply market through its Tecstar and Wheel to Wheel companies. The company specializes in vehicle systems design, integration and manufacturing of new body styles, mid-cycle enhancements, specialty products and high-performance engines and drive trains. The company also supplies automotive related aftermarket parts and accessories to wholesale and retail customers throughout the United States.

HUMVEE is a registered trademark of AM General LLC

HUMMER, H1 and H2 are registered trademarks of General Motors Corporation