EAGLEPICHER HOLDINGS, INC. ANNOUNCES FISCAL YEAR 2001 RESULTS

Cincinnati, Ohio, February 15, 2002 - EaglePicher Holdings, Inc. ("EaglePicher" or the "Company"), the parent company of EaglePicher Industries, Inc., announced today that net sales for its fiscal year ended November 30, 2001 were $692.5 million, down 8.3% from fiscal year 2000 net sales of $755.0 million, and down 2.8% from fiscal year 2000 net sales of $712.2 million excluding several divisions that were divested in fiscal year 2000 (the "Divested Divisions"). The Company also reported operating income of $4.3 million compared to fiscal year 2000 operating income of $62.3 million, or $64.2 million excluding the Divested Divisions, and a net loss of $(54.0) million compared to fiscal year 2000 net income of $5.6 million, or $13.5 million excluding the Divested Divisions. Net loss to common shareholders was $(67.3) million after accretion of preferred stock dividends, compared to a net loss of $(6.2) million, or net income of $1.6 million excluding the Divested Divisions, in fiscal year 2000. All figures for fiscal years 2000 and 2001 have been restated for the Company's Construction Equipment Division, which was accounted for as a discontinued operation throughout fiscal year 2001 and was sold as of December 14, 2001. These results are consistent with the preliminary fiscal year 2001 results announced by the Company on December 14, 2001.

The Company also reported earnings before interest, taxes, depreciation and amortization and certain items determined by management to be nonrecurring as described below ("EBITDA") for fiscal year 2001 of $85.7 million. This compares to EBITDA of $103.8 million in fiscal year 2000, or $102.6 million excluding the Divested Divisions. The disproportionate decrease in EBITDA was due primarily to raw materials price increases, price concessions to customers and operating inefficiencies, particularly in the Company's automotive businesses. Fiscal year 2001 EBITDA excludes the following items determined by management to be nonrecurring:

· A $30.8 million pre-tax charge due to the sale of the Company's Construction Equipment Division for less than its carrying value.

· A $14.2 million charge in connection with the restructuring of certain of the Company's operating divisions and the Company's headquarters and its announced relocation from Cincinnati, Ohio to Phoenix, Arizona.

· A net increase of $2.1 million in reserves for obligations related to divested operations.

· $3.1 million of certain special management compensation expenses.

EBITDA, as defined herein, may not be comparable to similarly titled measures reported by other companies and should not be construed as an alternative to operating income or to cash flows from operating activities, as determined by accounting principles generally accepted in the United States of America, as a measure of the Company's operating performance or liquidity, respectively. Funds depicted by EBITDA are not available for management's discretionary use to the extent they are required for debt service and other commitments.

EaglePicher reported that net cash from operating activities in fiscal year 2001 was $67.4 million, and that it used approximately $36.8 million in investing activities and approximately $17.8 million in financing activities in fiscal year 2001.

EaglePicher also reported the following as of November 30, 2001:

· Total indebtedness for borrowed money, including the current portion of long term debt and the Company's receivables loan facility, was $443.1 million.

· Cash on hand of $24.6 million.

· Availability of $74.3 million under its various credit facilities.

· Working capital of $83.4 million.

The Company was in compliance with all covenants under its senior debt facility as of November 30, 2001.

The Company announced that it expects sales for fiscal year 2002 to be approximately $700 million. The Company is projecting fiscal year 2002 EBITDA to be approximately $93 million to $97 million. Projected EBITDA improvement with roughly flat sales reflects cost reduction initiatives across the Company. On the basis of these projections, the Company believes it will be in compliance with all covenants under its senior debt facility in fiscal year 2002.

Based on current estimates of first quarter results, the Company is on track for expected fiscal year 2002 results, taking into account expected sequential growth in quarterly earnings, and the Company believes it will be in compliance with all of its debt covenants at February 28, 2002.

This news release contains statements which, to the extent that they are not recitations of historical fact, constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act of 1934. Such forward-looking information involves risks and uncertainties that could cause actual results to differ materially from those expressed in any such forward-looking statements. These risks and uncertainties include, but are not limited to, the ability of the Company to maintain existing relationships with customers, demand for the Company's products, the ability of the Company to successfully implement productivity improvements and/or cost reduction initiatives; the ability of the Company to develop, market and sell new products, the ability of the Company to obtain raw materials, increased government regulation or changing regulatory policies resulting in higher costs and/or restricting output, increased price competition, currency fluctuations, general economic conditions, acquisitions and divestitures, technological developments and changes in the competitive environment in which the Company operates, as well as factors discussed in the Company's filings with the U.S Securities and Exchange Commission.

EPI, founded in 1843, is a diversified manufacturer of industrial products for the automotive, defense, aerospace, construction and other industrial markets worldwide. EPI operates more than 40 plants and has 4,100 employees in the United States, Canada, Mexico, the United Kingdom, Germany and Japan. All of the Company's operations are conducted through EPI and its subsidiaries.