DECEMBER 8, 2003 - DIVESTITURE OF FLEXFAB MOLDED PRODUCTS BY FHI, INC.  -  FHI, Inc., of Hastings, Michigan today announced an agreement to sell Flexfab Molded Products LLC of East Troy, Wisconsin to The Thistle Group of Fort Wayne, Indiana.  The move reflects the company's intention to focus resources on its demanding core markets.

FMP has been part of FHI since 1998.  During that time it has added Liquid Injection Molding equipment to put it on the leading edge of technology for producing high volume, precision-molded silicone rubber components.

"While FMP achieved significant improvements as a custom molder, FHI did not achieve the synergies with our core businesses in the Heavy Duty Truck, Automotive, and Aerospace industries," stated Douglas A. Decamp, Chairman / President / CEO of FHI.  "This was our goal in acquiring the business, and we reluctantly concluded that it is best for the employees of FMP and for FHI to turn away from general custom molding and focus all our resources on our core businesses."

In announcing the sale to employees, Decamp pointed out that significant new business opportunities were brought to the parent company as a result of the five-year relationship with FMP.  "It is disappointing that we were  unable to find synergies with our existing markets.  But, on the other hand, our work with FMP brought on important new business in the power industry and introduced opportunities in extruded profiles, another of Flexfab's manufacturing specialties," he said. 

The Thistle Group intends to continue the operations presently located in East Troy, Wisconsin and to make the plant a significant part of their growth plans in the custom molding industry.

FHI, Inc. is the parent company of Flexfab LLC, a leading manufacturer of component parts for  the Heavy Duty Truck, Automotive, Aerospace and other industries, which require flexible parts for use in extremes of heat and cold.   Products include charge air connectors, coolant hose, heater hose, special reinforced shapes of all kinds as well as flexible ducting for a variety of applications.