Drew Industries Acquires Manufacturer of Electronic Systems for RV, Automotive and Industrial Industries

ELKHART, Ind., Mar. 4, 2014 /PRNewswire/ — Drew Industries Incorporated (NYSE:
DW), a leading supplier of components for recreational vehicles (RVs) and
manufactured homes, today announced that its wholly-owned subsidiary, Lippert
Components, Inc., has acquired Innovative Design Solutions, Inc. (IDS), a Troy,
Michigan-based designer, developer and manufacturer of electronic systems
encompassing a wide variety of RV applications. IDS also manufactures electronic
systems for automotive, medical and industrial applications.

“We are excited to have IDS and its employees join the Lippert Components
family,” said Drew’s Chief Executive Officer Jason Lippert. “The talented team
of engineers we have added from IDS are leaders in electronic systems for RVs
and other industries. In the past several years, the IDS team, alongside the
Lippert Components team, has been responsible for developing unique electronic
products for the RV industry. IDS will now have an even sharper focus on
developing innovative products for our RV customers, as well as customers in
adjacent industries.”

IDS had annual sales of approximately $19 million in 2013, of which $13 million
were to Lippert Components. Lippert Components believes the additional product
lines and diversified customer base will accelerate Lippert Components’
expansion into adjacent industries. The purchase price was $36.0 million, of
which $34.2 million was paid at closing from available cash and borrowings under
the Company’s $75 million line of credit, with the balance to be paid out
annually over the subsequent three years, plus contingent consideration based on
future sales. Drew expects the acquisition to be immediately accretive to
earnings.

“The products IDS manufactures are central to the control of several RV
components, including electronic leveling systems, jacks, lights, slide-out
mechanisms, awnings, tire pressure monitoring systems, among others,” continued
Jason Lippert. “Many of IDS’s RV products are already included in components we
sell, including a Wi-Fi enabled, touch-screen, Android-based device that enables
RV owners to control several RV functions. Having multiple functions connected
through one control device should help improve our customers’ manufacturing
efficiencies, as well as provide a strong selling point for retail customers.
Becoming the manufacturer of these products should also allow us to develop and
deliver these products to our customers more efficiently.”

Rob Ford, former owner of IDS, has entered into an employment agreement with
Lippert Components and will continue to manage the business. Rob Ford expects to
see the business flourish, “We are pleased that the business we have worked so
hard to grow will continue to be managed by our outstanding team. Electronics
have become a larger part of day-to-day life, and our innovative team has
continued to identify opportunities to bring ideas and improvements to the
industries we supply.”

Rob Ford concluded, “This acquisition provides a unique and exciting opportunity
to bring modern electronics to RV manufacturers and the RV aftermarket, which
will result in a better RV user experience. Combining Lippert Components’ and
IDS’s experience and technologies should open up exciting opportunities for
safety, control and interface electronic products. With the strategic,
financial, sales and marketing support that Lippert Components provides, we are
confident that the IDS business will continue to grow.”

About Drew Industries
From 32 factories located throughout the United States, Drew Industries, through
its wholly-owned subsidiary, Lippert Components(TM), supplies a full line of
components for the leading manufacturers of recreational vehicles and
manufactured homes. In addition, Drew manufactures components for adjacent
industries including buses; trailers used to haul boats, livestock, equipment
and other cargo; truck caps; modular housing; and factory-built mobile office
units. Drew’s products include steel chassis; vinyl and aluminum windows and
screens; slide-out mechanisms and solutions; axles and suspension solutions;
furniture and mattresses; thermoformed bath, kitchen and other products; manual,
electric and hydraulic stabilizer and lifting systems; chassis components;
entry, baggage, patio and ramp doors; entry steps; awnings; electronics;
aluminum extrusions; and other accessories. Additional information about Drew
and its products can be found at www.drewindustries.com.

Forward-Looking Statements
This press release contains certain “forward-looking statements” with respect to
our financial condition, results of operations, business strategies, operating
efficiencies or synergies, competitive position, growth opportunities,
acquisitions, plans and objectives of management, markets for the Company’s
Common Stock and other matters. Statements in this press release that are not
historical facts are “forward-looking statements” for the purpose of the safe
harbor provided by Section 21E of the Securities Exchange Act of 1934, as
amended, and Section 27A of the Securities Act of 1933, as amended, and involve
a number of risks and uncertainties.

Forward-looking statements, including, without limitation, those relating to our
future business prospects, net sales, expenses and income (loss), cash flow, and
financial condition, whenever they occur in this press release are necessarily
estimates reflecting the best judgment of our senior management at the time such
statements were made. There are a number of factors, many of which are beyond
the Company’s control, which could cause actual results and events to differ
materially from those described in the forward-looking statements. These factors
include, in addition to other matters described in this press release, pricing
pressures due to domestic and foreign competition, costs and availability of raw
materials and other components, availability of credit for financing the retail
and wholesale purchase of products for which we sell our components,
availability and costs of labor, employee retention, inventory levels of retail
dealers and manufacturers, levels of repossessed products for which we sell our
components, seasonality and cyclicality in the industries to which we sell our
products, the financial condition of our customers, the financial condition of
retail dealers of products for which we sell our components, retention and
concentration of significant customers, the pace of and successful integration
of acquisitions, realization of efficiency improvements, the successful entry
into new markets, the costs of compliance with increased governmental
regulation, interest rates, oil and gasoline prices, the impact of
international, national and regional economic conditions and consumer confidence
on the retail sale of products for which we sell our components, and other risks
and uncertainties discussed more fully under the caption “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2012, and in our
subsequent filings with the Securities and Exchange Commission. We disclaim any
obligation or undertaking to update forward-looking statements to reflect
circumstances or events that occur after the date the forward-looking statements
are made, except as required by law.

SOURCE Drew Industries Inc.

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