Tecumseh Products Company to Close New Holstein Plant

TECUMSEH, Mich., Feb. 9 /PRNewswire-FirstCall/ -- Tecumseh Products Company (Nasdaq: TECUA; TECUB) today announced that it has informed the workers in its manufacturing facility in New Holstein, Wisconsin, of the Company's decision to close the plant, in a two-stage process that will begin in mid-April.

The decision will affect the 320 workers currently employed at the plant, which produces component parts for the Company's gasoline engines. Layoffs associated with the plant closing will begin on or after April 13, 2007, when the jobs of up to 220 plant workers will end. The remaining 100 jobs will end on or about August 31.

James J. Bonsall, President and Chief Operating Officer of Tecumseh, said: "While maintaining several of its U.S. operations, Tecumseh over the past several years has increasingly outsourced the manufacturing of components and certain small engines to low-cost countries, including India, Brazil and China. Making these strategic moves enhances Tecumseh's ability to compete in the highly competitive global business environment. The impact of the decision announced today on Tecumseh's remaining workers in New Holstein is deeply regrettable, but unavoidable."

CAUTIONARY INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor provision created by that Act. In addition, forward-looking statements may be made orally in the future by or on behalf of the company. Forward-looking statements can be identified by the use of terms such as "expects," "should," "may," "believes," "anticipates," "will," and other future tense and forward-looking terminology. Readers are cautioned that actual results may differ materially from those projected as a result of certain risks and uncertainties, including, but not limited to, i) changes in business conditions and the economy in general in both foreign and domestic markets; ii) the effect of terrorist activity and armed conflict; iii) weather conditions affecting demand for air conditioners, lawn and garden product, portable power generators and snow throwers; iv) the success of our ongoing effort to bring costs in line with projected production levels and product mix; v) financial market changes, including fluctuations in interest rates and foreign currency exchange rates; vi) economic trend factors such as housing starts; vii) emerging governmental regulations; viii) availability and cost of materials, particularly commodities, including steel, copper and aluminum, whose cost can be subject to significant variation; ix) actions of competitors; x) the ultimate cost of resolving environmental and legal matters; xi) our ability to profitably develop, manufacture and sell both new and existing products; xii) the extent of any business disruption that may result from the restructuring and realignment of our manufacturing operations or system implementations, the ultimate cost of those initiatives and the amount of savings actually realized; xiii) the extent of any business disruption caused by work stoppages initiated by organized labor unions; xiv) the ability of the Company to maintain adequate liquidity in total and within each foreign operation; xv) potential political and economic adversities that could adversely affect anticipated sales and production in Brazil; xvi) potential political and economic adversities that could adversely affect anticipated sales and production in India, including potential military conflict with neighboring countries; xvii) our ability to reduce a substantial amount of costs in the Engine & Power Train group associated with excess capacity, and xviii) the ongoing financial health of major customers. The forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

  Contacts:       Teresa Hess
                  Director, Investor Relations
                  Tecumseh Products Company
                  517-423-8455
                  teresa.hess@tecumseh.com
                  or
                  Roy Winnick
                  Kekst and Company
                  212-521-4842
                  roy-winnick@kekst.com

Press releases and other investor information can be accessed via the Investor Relations section of Tecumseh Products Company's Internet web site at http://www.tecumseh.com/.

SOURCE: Tecumseh Products Company

CONTACT: Teresa Hess, Director, Investor Relations, of Tecumseh Products
Company, +1-517-423-8455, or teresa.hess@tecumseh.com; or Roy Winnick of Kekst
and Company, +1-212-521-4842, or roy-winnick@kekst.com, for Tecumseh Products
Company

Web site: http://www.tecumseh.com/

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