Denali news & news releases                                                                                      

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R. Kevin Andrews
Chief Financial Officer
713-627-0933

Ken Dennard / kdennard@easterly.com
Lisa Elliot / lisae@easterly.com

Easterly Investor Relations
713-529-6600

	FOR IMMEDIATE RELEASE 00/14
	DENALI WILL PURSUE RESTRUCTURING PLAN NOVEMBER 30, 2000 – HOUSTON, TEXAS – Denali Incorporated (DNLI.OB) today announced that the Company will pursue a Restructuring Plan. "Denali's Restructuring Plan has two major parts: (1) protecting and fostering the strengths and performance of Denali¹s underlying businesses; and (2) pursuing all available means to restructure the Company's balance sheet and strengthen its financial position," said Dick Volk, Chairman, CEO and President. "We see real strengths and values in all components of our business. The Restructuring Plan adopted by the Board of Directors today reflects the Company's commitment to preserving and enhancing business unit performance," Volk stated. "While we protect and foster our underlying businesses, we must also restructure Denali's balance sheet and strengthen our financial position. With the assistance of outside financial and legal advisors, we intend to pursue aggressive negotiations to restructure existing obligations as well as efforts to seek new financing." As previously announced, the Company is in default on its domestic and European credit facilities, and its domestic senior lenders executed a forbearance agreement whereby unpaid principal installments were deferred until November 30, 2000. During the week of November 27, 2000, Denali learned in discussions with William Blair Mezzanine Capital Fund III, L.P. ("Blair") that Blair had decided not to proceed with its previously proposed $23 million investment in the Company. The proposed investment by Blair had been viewed by the Company and its lenders as a potential solution to the Company's liquidity problems. As a result of Blair's decision, the Company advised its domestic senior lenders that it will not make its November 30, 2000 scheduled principal and interest payments. The Company has initiated discussions with both domestic and European lenders seeking continued forbearance to allow Denali to develop, negotiate and implement the various components of its Restructuring Plan. The Company also has commenced efforts to evaluate and pursue alternative potential sources of new financing. There is no assurance that the Company will be successful in its negotiations with its creditors or that it will be able to obtain new financing, each of which Denali's management currently anticipates will be necessary for the Company to continue as a going concern. However, based upon discussions to date with lenders and other third parties, as well as management's assessments of the strengths and values of Denali's underlying businesses, the Company believes that its Restructuring Plan can be implemented. "We at Denali will do our best to continue to earn the support and cooperation of our customers, suppliers and other third parties," said Volk. "With that support and cooperation, we believe our Restructuring Plan can be a success for everyone." Denali Incorporated is a provider of fluid handling products, specializing in corrosion-resistant applications in process industries. The Company is a manufacturer of engineered fiberglass-composite products, including tanks, vessels, and piping systems, as well as steel, above-ground storage tanks. The Company also distributes a wide range of engineered products and systems. Denali Incorporated is headquartered in Houston, Texas, and markets its products worldwide through its subsidiaries Containment Solutions (Houston); Plasticon Fluid Systems companies (headquartered in Tulsa) consisting of Ershigs, Fibercast, Belco, Plasti-Fab, and SEFCO; and the Welna companies of Plasticon Europe and Hanwel Europe (The Netherlands and Germany), Plasticon Poland, Plasticon U.K., and Plasticon France. This news release contains certain forward-looking statements as such term is defined in the Private Securities Litigation Reform Act of 1995 and information relating to the company and its subsidiaries that are based on the beliefs of the company¹s management as well as assumptions made by and information currently available to the company management. When used in this report, the words, "anticipate", "believe", "estimate", "expect", and "intend" and words or phrases of similar import, as they relate to the company or its subsidiaries or company management, are intended to identify forward-looking statements. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.

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