1016177--7/16/2007--DURA_AUTOMOTIVE_SYSTEMS

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The Company may not be able to obtain confirmation of its chapter 11 plan after development and when it submits it for Bankruptcy Court approval. We may not accomplish the objectives of our restructuring initiatives and workforce realignments. We have identified material weaknesses in our internal controls. Our Class A common stock has been delisted from the Nasdaq Global Market which has made our stock significantly less liquid and may affect its value. We are dependent on our largest customers and on selected vehicle programs. The current financial condition of the automotive industry in the United States could have a negative impact on our ability to finance our operations. Our inability to compete effectively in the highly competitive automotive supply industry could result in the loss of customers, which could have an adverse effect on our revenues and operating results. In the last three fiscal years, we have experienced declining gross margin, and we may not succeed in returning to historical gross margin levels. If we are unable to obtain our raw materials at favorable prices, it could adversely impact our financial condition. Our gross margin and profitability will be adversely affected by the inability to reduce costs or increase prices. Cyclicality and seasonality in the automotive, recreation and specialty vehicle markets could adversely affect our revenues and net income. We may incur restructuring and asset impairment charges that would reduce our earnings. We are subject to certain risks associated with our foreign operations that could harm our revenues and profitability. Currency exchange rate fluctuations could have an adverse effect on our revenues and financial results. Our business may be disrupted significantly by work stoppages and other labor matters. Our operating results may be adversely affected by environmental, health and safety requirements. We may be adversely affected by product liability exposure claims. Technological and regulatory changes may adversely affect us. To service our trade creditors and meet our other liquidity needs, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. Operating under the Bankruptcy Code may restrict our ability to pursue business strategies.

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1016177--7/16/2007--DURA_AUTOMOTIVE_SYSTEMS_INC