Johnstown America Industries Says Employees at Gunite Plant Strike

Business Wire, April 28, 1998

CHICAGO--(BUSINESS WIRE)--April 28, 1998--Johnstown America Industries, Inc. (NASDAQ:JAII) said today that the Company has received notification from Local 718 of the U.A.W. that employees at JAII's Gunite Corporation subsidiary would no longer work without a labor agreement and a strike commenced on April 27, 1998.

On April 23, Gunite's employees represented by the union rejected the tentative agreement that had been negotiated by the Company and the union. Gunite's employees had been working without an agreement since the previous agreement expired at midnight on Wednesday, April 22.

The company cannot predict when negotiations may resume or when a new collective bargaining agreement may be reached. Nor can the company offer assurance that a prolonged work stoppage at Gunite would not have a material adverse effect of the financial condition or results of operations of the company.

Johnstown America Industries, Inc., headquartered in Chicago, IL, has three operating groups: truck components and assemblies operations, a leading supplier of wheel-end components, seating, steerable drive axles and gear boxes for the heavy-duty truck industry; iron castings operations, a major producer of complex iron castings for a wide range of industries; and freight car operations, a leading manufacturer and lessor of new and rebuilt freight cars used for hauling coal, intermodal containers, highway trailers and agricultural and mining products.

The statements herein, which are not historical facts, including statements about future expectations, are "forward-looking statements" that involve certain risks and uncertainties that could cause actual future results to differ materially from those stated. These risks are spelled out more fully in the Company's SEC filings. The Company assumes no obligation to update its forward-looking statements.

CONTACT: Johnstown America Industries

Andrew M. Weller, 312/280-8844