<PAGE> 1
EXHIBIT 99.1
FOR IMMEDIATE RELEASE CONTACT: JOHN L. PUGH
(770) 438-9595
DORSEY ENGAGES TURNAROUND FIRM
Dorsey Trailers, Inc. announces it has engaged The Recovery Group, a crisis
management and turnaround-consulting firm, to assist in a restructuring of the
Company.
Mr. John L. Pugh, Chief Executive Officer for Dorsey states, "The U.S. trucking
has been in a precipitous decline this year. This decline has been driven by
higher fuel costs, increasing interest rates, and driver shortages. These
factors have affected the truck trailer industry resulting in a significant
reduction in demand for new equipment. This downturn in the industry has had a
dramatic affect on Dorsey's operating performance and has restrained the
Company's liquidity position. This has led us to engage The Recovery Group. They
are a highly regarded international firm with many years of experience and have
worked with a large number of manufacturing companies who have faced the same
kind of difficulties that we are now experiencing."
Mr. Pugh went on to say, "The Recovery Group is working with the management team
in reviewing our current position. We are looking at all actions necessary to
improve our current cash position and provide a roadmap for improving our
operating performance. The Company does not foresee a significant increase in
trailers purchased during the remainder of the year into the first quarter of
2001; therefore, all actions are being predicated on a continued soft demand for
new product.
Dorsey Trailers, Inc. designs, manufacturers, and markets one of the broadest
lines of high-quality, customized truck trailers through three plants located in
Alabama, Georgia, and South Carolina.
Certain statements in this press release and statements by the Company in
reports to its stockholders and public filings, as well as, oral public
statements by Company representatives may be deemed to be forward-looking
statements, as defined by the Private Securities Litigation Reform act of 1995.
Any forward-looking statements included herein have been included based upon
facts available to management as of the date of the statement. Any forward
looking statement is, however, inherently subject to the uncertainty of future
events, whether economic, competitive or otherwise, many of which are beyond the
control of the Company, or which may involve determinations which may be made by
management in the future. There can, therefore, be no assurances that the events
or results described in such forward-looking statements will occur and actual
events or results may vary materially from those included herein.
<PAGE> 2
PAGE 2
Without limitation, the following are some of the factors which may affect
whether the events or results described in such forward-looking statements will
occur: increased competition, dependence on key management, continued
availability of credit from vendors, continued advancement of funds from lender,
reliance on certain customers, shortages of raw materials, component prices,
labor shortages or work stoppage, dependence on current industry trends and
demand for product, manufacturing interruption due to unfavorable natural
events, unfavorable results of outstanding litigation, government regulations
and new technologies or products. Readers should review and consider the various
disclosures made by the Company in this press release and in its reports to
stockholders and periodic reports on Form 10-K and 10-Q.
