EXHIBIT 99.1

                                  PRESS RELEASE

DISTRIBUTION:     To Business Editor

DATELINE:  July 5, 2001:  Universal Mfg. Co., Algona, Iowa


The Ford Customer Service Division of the Ford Motor Company (Ford) has advised
Universal Mfg. Co. (Universal) of significant changes that will impact the
existing sales agreement between Ford and Universal. Ford announced that it
expects the changes to become effective on or about January 1, 2002.

Universal's existing sales agreement with Ford authorizes the distribution of
Ford branded replacement engine assemblies, transmission assemblies, and other
components to Ford and Lincoln-Mercury dealerships. In addition, the current
sales agreement authorizes the distribution of Motorcraft branded replacement
parts to Ford and Lincoln Mercury dealerships and to independent installers. The
pending change will require separate sales agreements for the distribution of
Ford branded assemblies and Motorcraft replacements parts, and Ford will no
longer authorize the distribution of both product lines from a single source. As
a result, Universal must decide whether to distribute Ford branded assemblies or
Motorcraft replacements parts and then enter into a new sales agreement.

The decision Ford is requiring Universal to make will result in the reduction of
sales volume because Universal will be forced to surrender an entire product
distribution line. Universal is currently reviewing both options, considering
reduced sales volume, potential future opportunities, and other factors. It is
anticipated that future earnings will be affected regardless of whether
Universal selects Ford branded assemblies or Motorcraft replacements parts.

This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned
that all forward-looking statements involve risks and uncertainties, including,
without limitation, the effect of the general economic conditions, customer
requirements for Universal products, future actions by Ford, the continuing
strength of the automotive industry, increased competition and other factors.
Such factors could cause actual results to differ materially from those in the
forward-looking statements.

For additional information on this matter please contact Donald D. Heupel,
President of Universal Mfg. Co., at 515-295-3557.