WEST NYACK, NY -- March 24, 1999--General Bearing Corporation (Nasdaq:GNRL) today announced that Detroit Edison, a subsidiary of DTE Energy Co. (NYSE: DTE), has contracted to buy $1.7 million of its Hyatt Tapered Journal Bearings for coal-carrying freight cars. The award was twice the size of an earlier order the company earned from Detroit Edison in 1998.
Based on excellent field performance, General Bearing recently earned Unconditional Approval from the Association of American Railroads (AAR) to sell its Hyatt Tapered Journal Bearings in unlimited quantities to railroads and other railcar owners. The Company said this was a significant factor in being selected for the Detroit Edison contract. Detroit Edison controls a fleet of 6,000 coal carrying freight cars.
Detroit Edison specified General Bearing's Hyatt Tapered Journal Bearings rather than accepting the standard bearings used by the railcar manufacturer. Dennis J. Buda, Supervisor of Assets, Fuel Supply, Detroit Edison, said: AWe place a tremendous value on our relationship with General Bearing and our approval is a vote of confidence in its products and service. We intend to give General Bearing every opportunity to be our bearing provider of choice in the future.
General Bearing President David L. Gussack said, "We are extremely pleased by Detroit Edison's new and substantially larger order. Coal cars are a demanding application for Tapered Journal Bearings because they carry heavier loads and travel more miles than other railroad cars. We consider this award a testimony to the durability, quality and value of our product."
General Bearing has supplied Tapered Journal Bearings to the railroad industry since 1994. Marketed under the Hyatt trademark, the bearings were originally designed and produced by the former Hyatt division of General Motors Corp., and had the industry's best performance record. General Bearing is well on its way to duplicating that record.
General Bearing manufactures, assembles and distributes a wide variety of bearing components and products including ball bearings, tapered roller bearings, spherical roller bearings and cylindrical roller bearings. Under The General(tm) and the Hyatt(tm)trademarks, the Company supplies to Original Equipment Manufacturers and Aftermarket Distributors in the automotive, truck, railroad, office equipment, appliance and industrial machinery markets.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for the current FY and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, the company.