<PAGE>
                                   FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                         ------------------------------

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2002

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                    For the transition period from     to
                                                   ----  ----
                         Commission file number 0-21139

                          DURA AUTOMOTIVE SYSTEMS, INC.

             (Exact name of Registrant as specified in its charter)

                  DELAWARE                                  38-3185711
       (State or other jurisdiction of                   (I.R.S. Employer
       incorporation or organization)                   Identification No.)
               4508 IDS CENTER                                 55402
           MINNEAPOLIS, MINNESOTA                           (Zip Code)
  (Address of principal executive offices)

                                 (612) 342-2311
              (Registrant's telephone number, including area code)

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.

       Yes X                                       No
          ----                                       ----

The number of shares outstanding of the Registrant's Class A common stock, par
value $.01 per share, at August 1, 2002 was 16,376,497 shares. The number of
shares outstanding of the Registrant's Class B common stock, par value $.01 per
share, at August 1, 2002 was 1,841,150 shares.


<PAGE>







                          DURA AUTOMOTIVE SYSTEMS, INC.
                                    FORM 10-Q

                                TABLE OF CONTENTS

PART I        FINANCIAL INFORMATION

         Item 1.    Financial Statements:

                    Condensed Consolidated Statements of Operations for the
                    Three Months Ended June 30, 2002 and 2001 (unaudited)

                    Condensed Consolidated Statements of Operations for the Six
                    Months Ended June 30, 2002 and 2001 (unaudited)

                    Condensed Consolidated Balance Sheets at June 30, 2002
                    (unaudited) and December 31, 2001

                    Condensed Consolidated Statements of Cash Flows for the Six
                    Months Ended June 30, 2002 and 2001 (unaudited)

                    Notes to Condensed Consolidated Financial Statements
                    (unaudited)

         Item 2.    Management's Discussion and Analysis of Financial Condition
                    and Results of Operations

         Item 3.    Quantitative and Qualitative Disclosures about Market Risk


PART II       OTHER INFORMATION

         Item 1.    Legal Proceedings

         Item 4.    Submission of Matters to a Vote of Security Holders

         Item 6.    Exhibits and Reports on Form 8-K


SIGNATURE

                                      -2-




<PAGE>


ITEM 1 - FINANCIAL INFORMATION

                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

      (AMOUNTS IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS - UNAUDITED)

<TABLE>
<CAPTION>

                                                               Three Months Ended June 30,
                                                              -----------------------------
                                                               2002                  2001
                                                              ---------           ---------
<S>                                                           <C>                 <C>
Revenues                                                      $ 667,283           $ 666,321
Cost of sales                                                   577,312             577,310
                                                              ---------           ---------
        Gross profit                                             89,971              89,011
Selling, general and administrative expenses                     35,637              36,099
Facility consolidation and other charges                         21,088                  --
Amortization expense                                                289               6,695
                                                              ---------           ---------
        Operating income                                         32,957              46,217
Interest expense, net                                            20,972              24,616
                                                              ---------           ---------
        Income before provision for income taxes and
          minority interest                                      11,985              21,601
Provision for income taxes                                       15,952               8,061
Minority interest - dividends on trust preferred
  securities, net                                                   601                 674
                                                              ---------           ---------
        Income (loss) before extraordinary item               $  (4,568)          $  12,866
Extraordinary item                                               (3,422)                 --
                                                              ---------           ---------
        Net income (loss)                                     $  (7,990)          $  12,866
                                                              =========           =========
Basic earnings (loss) per share:
        Income (loss) before extraordinary item               $   (0.26)          $    0.72
        Extraordinary item                                        (0.19)                 --
                                                              ---------           ---------
            Net income (loss)                                 $   (0.45)          $    0.72
                                                              =========           =========
Basic shares outstanding                                         17,935              17,757
                                                              =========           =========
Diluted earnings (loss) per share:
        Income (loss) before extraordinary item               $   (0.26)          $    0.70
        Extraordinary item                                        (0.19)                 --
                                                              ---------           ---------
            Net income (loss)                                 $   (0.45)          $    0.70
                                                              =========           =========
Diluted shares outstanding                                       17,935              19,353
                                                              =========           =========
</TABLE>


           The accompanying notes are an integral part of these condensed
consolidated statements.

                                       -3-
<PAGE>


                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

      (AMOUNTS IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS - UNAUDITED)

<TABLE>
<CAPTION>
                                                                  Six Months Ended June 30,
                                                              ---------------------------------
                                                                  2002               2001
                                                              --------------    ---------------
<S>                                                           <C>                   <C>
Revenues                                                      $ 1,283,464           $ 1,328,174
Cost of sales                                                   1,117,145             1,147,256
                                                              -----------           -----------
        Gross profit                                              166,319               180,918
Selling, general and administrative expenses                       69,904                73,732
Facility consolidation and other charges                           21,088                 2,629
Amortization expense                                                  685                13,694
                                                              -----------           -----------
        Operating income                                           74,642                90,863
Interest expense, net                                              43,518                53,149
                                                              -----------           -----------
        Income before provision for income taxes and
          minority interest                                        31,124                37,714
Provision for income taxes                                         23,225                14,345
Minority interest - dividends on trust preferred
  securities, net                                                   1,243                 1,285
                                                              -----------           -----------
        Income before extraordinary item                      $     6,656           $    22,084
Extraordinary item                                                 (3,422)                   --
                                                              -----------           -----------
        Net income                                            $     3,234           $    22,084
                                                              ===========           ===========
Basic earnings per share:
        Income before extraordinary item                      $      0.37          $       1.25
        Extraordinary item                                          (0.19)                   --
                                                              -----------           -----------
           Net Income                                                0.18                  1.25
                                                              ===========           ===========
Basic shares outstanding                                           17,875                17,736
                                                              ===========           ===========
Diluted earnings per share:
        Income before extraordinary item                      $      0.36           $      1.22
        Extraordinary item                                          (0.18)                   --
                                                              -----------           -----------
           Net income                                         $      0.18           $      1.22
                                                              ===========           ===========
Diluted shares outstanding                                         18,417                19,214
                                                              ===========           ===========
</TABLE>

         The accompanying notes are an integral part of these condensed
consolidated statements.




                                      -4-

<PAGE>




                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                             (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>

                                                                           June 30,            December 31,
                             Assets                                          2002                  2001
------------------------------------------------------------------     -----------------      ----------------
                                                                         (unaudited)
<S>                                                                    <C>                    <C>
Current assets:
       Cash and cash equivalents                                       $       124,179       $         32,289
       Accounts receivable, net                                                332,664                293,476
       Inventories                                                             119,187                116,508
       Other current assets                                                    135,892                126,367
                                                                       -----------------      ----------------
             Total current assets                                              711,922                568,640
                                                                       -----------------      ----------------

Property, plant and equipment, net                                             493,557                516,517
Goodwill, net                                                                  976,525                962,467
Deferred income taxes and other assets, net                                     84,164                 73,980
                                                                       -----------------      ----------------
                                                                       $     2,266,168        $     2,121,604
                                                                       =================      ================

            Liabilities and Stockholders' Investment
------------------------------------------------------------------

Current liabilities:
       Accounts payable                                                $       282,798        $       249,824
       Accrued liabilities                                                     236,296                177,327
       Current maturities of long-term debt                                      5,276                 60,847
                                                                       -----------------      ----------------
             Total current liabilities                                         524,370                487,998
                                                                       -----------------      ----------------
Long-term debt, net of current maturities                                    1,067,003              1,015,579
Other noncurrent liabilities                                                   131,591                120,380

Mandatorily redeemable convertible trust preferred securities                   55,250                 55,250
                                                                       -----------------      ----------------

Stockholders' investment:
       Common stock - Class A                                                      163                    147
       Common stock - Class B                                                       19                     31
       Additional paid-in capital                                              346,394                342,694
       Treasury stock                                                           (1,652)                (1,891)
       Retained earnings                                                       164,502                161,268
       Accumulated other comprehensive loss                                    (21,472)               (59,852)
                                                                       -----------------      ----------------
             Total stockholders' investment                                    487,954                442,397
                                                                       -----------------      ----------------
                                                                       $     2,266,168        $     2,121,604
                                                                       =================      ================

</TABLE>

           The accompanying notes are an integral part of these condensed
consolidated balance sheets.

                                      -5-

<PAGE>



                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                       (AMOUNTS IN THOUSANDS - UNAUDITED)

<TABLE>
<CAPTION>
                                                                         Six Months Ended June 30,
                                                                   ---------------------------------
                                                                      2002                 2001
                                                                   -------------     ---------------
<S>                                                                   <C>                 <C>
OPERATING ACTIVITIES:
      Net income                                                      $   3,234           $  22,084
      Adjustments to reconcile net income to
        net cash provided by operating activities -
         Depreciation and amortization                                   37,323              47,992
         Deferred income taxes                                            9,548               1,584
         Extraordinary loss on extinguishment of debt                     3,422                  --
         Changes in other operating items                                53,119              65,287
                                                                      ---------           ---------
         Net cash provided by operating activities                      106,646             136,947
                                                                      ---------           ---------

INVESTING ACTIVITIES:
      Net proceeds from disposition of businesses                        31,122                  --
      Capital expenditures, net                                         (25,935)            (29,639)
                                                                      ---------           ---------
         Net cash provided by (used in) investing activities              5,187             (29,639)
                                                                      ---------           ---------
FINANCING ACTIVITIES:
      Short-term debt repayments, net                                   (58,117)             (5,074)
      Long-term debt repayments, net                                   (306,219)           (100,617)
      Proceeds from issuance of senior notes                            350,000                  --
      Debt issue costs                                                  (10,964)                 --
      Proceeds from issuance of common stock and
        exercise of stock options                                         3,704                  --
      Other, net                                                            239                 105
                                                                      ---------           ---------

         Net cash used in financing activities                          (21,357)           (105,586)
                                                                      ---------           ---------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                                   1,414              (2,495)
                                                                      ---------           ---------
NET INCREASE (DECREASE) IN CASH AND CASH
      EQUIVALENTS                                                        91,890                (773)

CASH AND CASH EQUIVALENTS:
      Beginning of period                                                32,289              30,438
                                                                      ---------           ---------
      End of period                                                   $ 124,179           $  29,665
                                                                      =========           =========


SUPPLEMENTAL DISCLOSURE:
      Cash paid for interest                                          $  39,977           $  53,164
      Cash paid (refunded) for income taxes                           $   6,247           $    (588)

</TABLE>

           The accompanying notes are an integral part of these condensed
consolidated statements.


                                      -6-

<PAGE>


                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.       BASIS OF PRESENTATION

        General - Dura Automotive Systems, Inc. (a Delaware Corporation) and
subsidiaries (Dura) designs and manufactures components and systems primarily
for the global automotive industry. Dura has over 70 manufacturing and product
development facilities located in the United States, Brazil, Canada, Czech
Republic, France, Germany, Mexico, Portugal, Spain and the United Kingdom.

        We have prepared the condensed consolidated financial statements of
Dura, without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. The information furnished in the condensed consolidated
financial statements includes normal recurring adjustments and reflects all
adjustments which are, in our opinion, necessary for a fair presentation of the
results of operations and statements of financial position for the interim
periods presented. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States have been condensed or
omitted pursuant to such rules and regulations. We believe that the disclosures
are adequate to make the information presented not misleading when read in
conjunction with the financial statements and the notes thereto included in our
Annual Report on Form 10-K, as filed with the Securities and Exchange Commission
for the period ended December 31, 2001.

        Revenues and operating results for the six months ended June 30, 2002
are not necessarily indicative of the results to be expected for the full year.

2.    INVENTORIES

        Inventories consisted of the following (in thousands):
<TABLE>
<CAPTION>
                                        June 30,         December 31,
                                         2002               2001
                                      ----------        ------------
<S>                                   <C>               <C>
           Raw materials              $   63,608        $     65,228
           Work-in-process                26,760              25,369
           Finished goods                 28,819              25,911
                                      ----------        ------------
                                      $  119,187        $    116,508
                                      ==========        ============

</TABLE>

3.    EARNINGS (LOSS) PER SHARE

        Basic earnings (loss) per share were computed by dividing net income by
the weighted average number of Class A and Class B common shares outstanding
during the period. Diluted earnings (loss) per share is computed under the
treasury stock method and calculates the dilutive effect of potential common
shares, as follows (in thousands, except share and per share amounts):


                                       -7-

<PAGE>

<TABLE>
<CAPTION>
                                                                         Three months                  Six months
                                                                        ended June 30,                 ended June 30,
                                                              --------------------------    -------------------------
                                                                 2002            2001          2002          2001
                                                              -----------     ----------    -----------    ----------
<S>                                                            <C>             <C>            <C>            <C>
Net income (loss)                                              $ (7,990)       $ 12,866       $  3,234       $ 22,084
Interest expense on mandatorily redeemable
  convertible preferred securities, net of tax - diluted             --             674             --          1,285
                                                               --------        --------       --------       --------
Net income (loss) applicable to common
  stockholders - diluted                                       $ (7,990)       $ 13,540       $  3,234       $ 23,369
                                                               ========        ========       ========       ========

Weighted average number of Class A
  common shares outstanding                                      15,717          14,488         15,244         14,445
Weighted average number of Class B
  common shares outstanding                                       2,218           3,269          2,631          3,291
                                                               --------        --------       --------       --------
                                                                 17,935          17,757         17,875         17,736
Dilutive effect of outstanding stock options
  after application of the treasury stock method                     --             307            542            189
Dilutive effect of mandatorily redeemable
  convertible preferred securities, assuming
  conversion                                                         --           1,289             --          1,289
                                                               --------        --------       --------       --------
Diluted shares outstanding                                       17,935          19,353         18,417         19,214
                                                               ========        ========       ========       ========
Basic earnings (loss) per share                                $  (0.45)       $   0.72       $   0.18       $   1.25
                                                               ========        ========       ========       ========
Diluted earnings (loss) per share                              $  (0.45)       $   0.70       $   0.18       $   1.22
                                                               ========        ========       ========       ========
</TABLE>


         Potential common shares of approximately 1,978,000, relating to Dura's
outstanding stock options and Preferred Securities were excluded from the
computation of diluted earnings per share for the three months ended June 30,
2002, as inclusion of these shares would have been anti-dilutive. Potential
common shares of approximately 1,289,000, relating to Dura's Preferred
Securities were excluded from the computation of diluted earnings per share for
the six months ended June 30, 2002, as inclusion of these shares would have been
anti-dilutive.

4.       FACILITY CONSOLIDATION AND OTHER CHARGES

   Divestitures

        In May 2002, Dura divested its Steering Gear Business. The Steering Gear
Business is a machining operation that utilized a technology that was determined
to be non-essential to Dura's capabilities. This business employs approximately
200 people in England and generated annual revenue of approximately $20.0
million. The transaction resulted in a one-time charge of approximately $19.2
million consisting of asset write-downs and remaining contractual commitments.
No tax benefit was recorded related to this charge. In addition, Dura also
wrote-off approximately $2.1 million related to certain deferred tax assets and
this is included in the provision for income taxes in the accompanying condensed
consolidated statements of income for the three and six months ended June 30,
2002. The effects of this divestiture on future operating results will not be
significant.

                                       -8-

<PAGE>

        In November 2001, Dura entered into a definitive agreement to divest its
Plastic Products Business for gross proceeds of approximately $41.0 million. The
transaction closed in January 2002. The net cash proceeds of approximately $31.1
million were used to repay outstanding indebtedness. The Plastic Products
Business designs, engineers, and manufactures plastic components for a wide
variety of automotive vehicle applications, focusing on the metal to plastic
conversion and dual plastic applications markets. This business employs
approximately 750 people in three facilities located in Mishawaka, Indiana,
Bowling Green, Kentucky and Jonesville, Michigan and generated approximately
$80.0 million in annual revenue. Two members of Dura's board of directors are
members of management of an investor group which is general partner of the
controlling shareholder of the acquiring company. Dura recorded a noncash charge
of approximately $7.4 million in the fourth quarter of 2001 for the estimated
loss upon divestment. In the second quarter of 2002, Dura recorded an additional
$1.9 million charge related to final negotiation of purchase price adjustments.
The effect of this divestiture on future operating results will not be
significant.

   Restructuring

        Throughout 2000 and 2001 Dura has evaluated manufacturing capacity
issues and opportunities for cost reduction given the reduced demand in the
North America automotive and recreational vehicle markets and the available
capacity within Dura's operations. As a result, beginning in the fourth quarter
of 2000, Dura began to implement several actions including discontinuing
operations in two North American facilities, combining the Driver Control and
Engineered Products divisions into one, Control Systems, and reducing and
consolidating certain support activities to achieve an appropriate level of
support personnel relative to remaining operations and future business
requirements. These actions resulted in a fourth quarter 2000 restructuring
charge of $6.8 million, including severance related payments of $6.2 million and
facility closure costs of approximately $0.6 million. Additionally in 2000, Dura
expensed as incurred equipment relocation costs of $0.8 million. In continuation
of the actions taken in 2000, Dura recorded $2.4 million of additional
restructuring charges in the first quarter and $2.0 million in the fourth
quarter of 2001 relating to employee severance. Dura also expensed as incurred
approximately $0.2 million of equipment relocation costs incurred during the
first quarter of 2001. The effect of the costs expensed as incurred are
reflected as facility consolidation and other charges in the consolidated
statements of operations.

        Costs incurred and charged to the reserves as of June 30, 2002 amounted
to $9.9 million in severance related costs and $0.4 million in facility closure
costs. During 2001, additional adjustments were made of $0.1 million to decrease
the reserve for employee severance, as the actual costs incurred were less than
originally estimated.

        The decision to exit the two facilities will result in a reduction in
the work force of approximately 52 salaried and 408 hourly employees of which 52
salaried and 406 hourly employees have been severed as of June 30, 2002.
Additionally, the decision to consolidate two divisions into one and to reduce
support personnel to a level consistent with future business requirements
resulted in a reduction of approximately 217 salaried employees of which 216
have been severed as of June 30, 2002. These restructuring actions are
anticipated to be complete in 2002.

                                      -9-

<PAGE>

5.       ACQUISITION INTEGRATIONS

         Dura has developed and implemented the majority of the facility
consolidation plans designed to integrate the operations of past acquisitions.
As of June 30, 2002, purchase liabilities recorded in conjunction with the
acquisitions included approximately $18.4 million for costs associated with the
shutdown and consolidation of certain acquired facilities and $4.1 million for
severance and other related costs. Costs incurred and charged to these reserves
amounted to $1.4 million related to acquired facilities and $0.6 million in
severance and other related costs during the quarter ended June 30, 2002. The
remaining employee terminations and facility closures are expected to be
completed by the end of 2002 except for certain contractual obligations that
extend beyond that date.

6.       LONG-TERM DEBT

     Long-term debt consisted of the following (in thousands):

<TABLE>
<CAPTION>

                                          June 30,             December 31,
                                            2002                  2001
                                        -----------             -----------
<S>                                     <C>                     <C>
Credit Agreement:
  Tranche A and B term loans            $        --             $   454,306
  Tranche C term loan                       150,000                      --
  Revolving credit facility                      --                  62,584
Senior notes                                353,346                      --
Subordinated notes                          549,936                 539,700
Other                                        18,997                  19,836
                                        -----------             -----------
                                          1,072,279               1,076,426
Less - Current maturities                    (5,276)                (60,847)
                                        -----------             -----------
Total long-term debt                    $ 1,067,003             $ 1,015,579
                                        ===========             ===========
</TABLE>

        In connection with the acquisitions of Adwest and Excel, Dura entered
into an amended and restated $1.15 billion credit agreement (Credit Agreement).
The Credit Agreement provides for revolving credit facilities of $400.0 million,
a $275.0 million tranche A term loan, a $275.0 million tranche B term loan and a
$200.0 million interim term loan facility.

        In April 2002, Dura completed the offering of $350.0 million 8 5/8
percent senior unsecured notes (Senior Notes), due April 2012. The interest on
the Senior Notes is payable semi-annually. Net proceeds from this offering of
approximately $341.0 million were used to repay the outstanding balance of the
$275.0 million tranche A term loan, and a portion of the $275.0 million tranche
B term loan. Dura then replaced the remaining tranche B term loan with a $150.0
million tranche C term loan. Borrowings under the tranche C term loan are based
on LIBOR and are due and payable in December 2008 with no early payment
penalties. In conjunction with these transactions, Dura obtained an amendment to
the Credit Agreement to allow for the offering and to further relax certain
financial covenants. Dura also entered into a fixed to floating interest rate
swap (notional amount of $325.0 million) with various financial institutions
that more closely mirrors the cost of its bank debt (see Note 8). In connection
with the repayment of borrowings outstanding under the Credit Agreement, Dura
wrote-off debt issuance costs of approximately $3.4 million, net of income
taxes, during the second quarter of

                                      -10-
<PAGE>


2002. This write-off is reflected as an extraordinary item in the accompanying
condensed consolidated statements of operations for the three and six months
ended June 30, 2002.

        As of June 30, 2002, rates on borrowings under the Credit Agreement are
based on LIBOR and were 4.3 percent. The revolving credit facility is available
until March 2005. Borrowings under the interim loan were due and payable in
September 2000, and, as further discussed below, were repaid in April 1999. The
Credit Agreement contains various restrictive covenants which limit
indebtedness, investments, rental obligations and cash dividends. The Credit
Agreement also requires Dura to maintain certain financial ratios including
minimum liquidity and interest coverage. Dura was in compliance with the
covenants as of June 30, 2002. Borrowings under the Credit Agreement are
collateralized by certain assets of Dura.

        The Credit Agreement provides Dura with the ability to denominate a
portion of its revolving credit borrowings in foreign currencies up to an amount
equal to $150.0 million. As of June 30, 2002, Dura had no borrowings outstanding
under the revolver.

        Dura also utilizes uncommitted overdraft facilities to satisfy the
short-term working capital requirements of its foreign subsidiaries. At June 30,
2002, Dura had no borrowings outstanding under its unsecured overdraft
facilities. At June 30, 2002, Dura had unsecured overdraft facilities available
from banks of approximately $37.1 million.

        In April 1999, Dura completed the offering of $300.0 million and Euro
100.0 million of 9 percent senior subordinated notes (Subordinated Notes), due
May 2009. The interest on the Subordinated Notes is payable semi-annually. Net
proceeds from this offering of approximately $394.7 million were used to repay
the $200.0 million interim term loan, approximately $78.1 million to retire
other indebtedness and approximately $118.9 million was used for general
corporate purposes. In June 2001, Dura completed a similar offering of 9 percent
senior subordinated notes due May 2009 with a face amount of $158.5 million. The
interest on these notes is also payable semi-annually. Unamortized discount and
debt issuance costs were approximately $8.5 million, yielding an imputed
interest rate of 10 percent. Net proceeds of approximately $147.1 million were
used to reduce the borrowings outstanding under the revolving credit facility.
These notes are collateralized by guarantees of certain of Dura's subsidiaries.


7.       BUSINESS COMBINATIONS, GOODWILL AND INTANGIBLE ASSETS

        In July 2001, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 141, "Business
Combinations," and SFAS No. 142, "Goodwill and Other Intangible Assets". SFAS
No. 141 requires all business combinations initiated after June 30, 2001 to be
accounted for using the purchase method of accounting. Under SFAS No. 142
goodwill and intangible assets with indefinite lives are no longer amortized,
but reviewed annually, or more frequently if impairment indicators arise.
Separable intangible assets that are not deemed to have indefinite lives will
continue to be amortized over their useful lives, but with no maximum life. The
amortization provisions of SFAS No. 142 apply to goodwill and intangible assets
acquired after June 30, 2001. With respect to goodwill and intangible assets
acquired prior to July 1, 2001, Dura is required to adopt SFAS No. 142 effective
January 1, 2002. As of June 30, 2002, Dura has completed step one of the
transitional goodwill impairment test. The results of this step have identified
that Dura may have to record an impairment loss related to

                                      -11-
<PAGE>


its Controls Systems and Other Operating Companies reportable units, as defined
under SFAS No. 142. Based on current estimates, Dura believes the range of the
transitional goodwill impairment to be from $200.0 million to $240.0 million.
Dura will complete step two of the transitional goodwill impairment test prior
to the end of the year. Had the non-amortization provision of SFAS No. 141 and
142 been adopted January 1, 2001, net income and earnings per share would have
been reported as the following amounts (in thousands, except per share data):

<TABLE>
<CAPTION>
                                                    Three months ended              Six months ended
                                                         June 30,                       June 30,
                                             ----------------------------      --------------------------
                                                2002             2001            2002            2001
                                             -----------      -----------      ---------       ----------
<S>                                          <C>              <C>              <C>             <C>
Net income (loss), as reported               $   (7,990)      $   12,866       $    3,234      $   22,084
Add back goodwill amortization, net of
  tax                                                --            5,886               --          11,922
                                             ----------       ----------       ----------      ----------
Adjusted net income (loss)                   $   (7,990)      $   18,752       $    3,234      $   34,006

Basic earnings (loss) per share:
Net income (loss), as reported               $    (0.45)      $     0.72       $     0.18      $     1.25
Goodwill amortization                                --             0.33               --            0.67
                                             ----------       ----------       ----------      ----------
Adjusted net income (loss)                   $    (0.45)      $     1.05       $     0.18      $     1.92

Diluted earnings (loss) per share:
Net income (loss), as reported               $    (0.45)      $     0.70       $     0.18      $     1.22
Goodwill amortization                                --             0.30               --            0.62
                                             ----------       ----------       ----------      ----------
Adjusted net income (loss)                   $    (0.45)      $     1.00       $     0.18      $     1.84
</TABLE>


8.       DERIVATIVES AND HEDGING ACTIVITIES

        Dura is exposed to various market risks, including changes in foreign
currency exchange rates and interest rates. Market risk is the potential loss
arising from adverse changes in market rates and prices, such as foreign
currency exchange and interest rates. Dura does not enter into derivatives or
other financial instruments for trading or speculative purposes. Dura enters
into financial instruments to manage and reduce the impact of changes in foreign
currency exchange rates and interest rates.

        Dura uses forward exchange contracts to hedge its foreign currency
exposure related to the interest payments under its outstanding 100 million Euro
denominated Senior Subordinated Notes. Dura designated these contracts at their
inception as a cash flow hedge. At June 30, 2002, Dura had outstanding contracts
to purchase $4.5 million Euro (approximately $3.9 million), representing the
interest payments due during 2002. The estimated fair value of these foreign
exchange contracts based upon market quotes was approximately $4.4 million. The
net realized gain of approximately $0.5 million is included in accumulated other
comprehensive income in the accompanying June 30, 2002 condensed consolidated
balance sheet.

        In April 2002, in connection with the Senior Note offering, Dura entered
into a fixed to floating interest rate swap (notional amount of $325.0 million)
with various financial institutions. Dura designated these contracts at their
inception as a fair value hedge. At June 30, 2002,

                                      -12-

<PAGE>


Dura's swap contracts outstanding had a fair value based upon market quotes of
approximately $3.3 million and this amount is included in long term debt in the
accompanying June 30, 2002 condensed consolidated balance sheet.

        The counter parties to the above agreements are major financial
institutions. Dura does not enter into or hold derivatives for trading or
speculative purposes.

9.       COMPREHENSIVE INCOME (LOSS)

        Comprehensive income reflects the change in equity of a business
enterprise during a period from transactions and other events and circumstances
from non-owner sources. For Dura, comprehensive income (loss) represents net
income adjusted for foreign currency translation adjustments and the deferred
gain/ loss on derivative instruments utilized to hedge Dura's interest and
foreign exchange exposures. Comprehensive income (loss) for the periods is as
follows (in thousands):

<TABLE>
<CAPTION>
                                                 Three months ended                  Six months ended
                                                      June 30,                           June 30,
                                             -------------------------           ------------------------
                                              2002             2001                 2002          2001
                                             ---------      ----------           --------       ---------
<S>                                          <C>            <C>                  <C>            <C>
Net income (loss)                            $ (7,990)      $ 12,866             $  3,234       $ 22,084
Other comprehensive income:
     Foreign currency translation
       adjustment                              46,110         (8,191)              39,079        (29,171)
     Derivative instruments                    (1,102)          (830)                (699)          (617)
                                             --------       --------             --------       --------
Comprehensive income (loss)                  $ 37,018       $  3,845             $ 41,614         (7,704)
                                             ========       ========             ========       ========
</TABLE>


10.      NEW ACCOUNTING PRONOUNCEMENTS

        In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset
Retirement Obligations." This statement requires recognition of a liability for
any legal obligations associated with the retirement of a tangible long-lived
asset. Any such liability will be recorded at fair value when incurred and
generally results in an increase to the carrying amount of the related
long-lived asset. This statement will be effective for Dura for the year ending
December 31, 2003. The adoption of this statement will not have a material
effect on our results of operations or financial position.

        In July 2001, the FASB issued SFAS No. 144, "Impairment or Disposal of
Long-Lived Assets," which was effective for fiscal years beginning after
December 15, 2001. The provisions of this Statement provide a single accounting
model for impairment of long-lived assets. Dura adopted SFAS No. 144 on January
1, 2002. The adoption of this pronouncement did not have a material impact on
our results of operations or financial position.

        In April 2002, the FASB issued SFAS No. 145 "Rescission of FASB
Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections". This statement eliminates the automatic classification of gain or
loss on extinguishment of debt as an extraordinary item of income and requires
that such gain or loss be evaluated for extraordinary classification under the
criteria of Accounting Principles Board No. 30 "Reporting Results of

                                      -13-

<PAGE>

Operations". This statement also requires sales-leaseback accounting for certain
lease modifications that have economic effects that are similar to
sales-leaseback transactions, and makes various other technical corrections to
existing pronouncements. This statement will be effective for Dura for the year
ending December 31, 2003. The adoption of this statement may result in a
reclassification within our results of operations.

11. CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
    FINANCIAL INFORMATION

        The following condensed consolidating financial information presents
balance sheets, statements of income and cash flow information related to Dura's
business. Each Guarantor, as defined, is a direct or indirect wholly owned
subsidiary of Dura and has fully and unconditionally guaranteed the 9% senior
subordinated notes issued by Dura Operating Corp., on a joint and several basis.
Separate financial statements and other disclosures concerning the Guarantors
have not been presented because management believes that such information is not
material to investors.


                                      -14-

<PAGE>


11. CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
    FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
                CONSOLIDATING BALANCE SHEETS AS OF JUNE 30, 2002
                       (AMOUNTS IN THOUSANDS - UNAUDITED)

<TABLE>
<CAPTION>
                                         DURA                            NON-
                                       OPERATING      GUARANTOR       GUARANTOR
                                         CORP.        COMPANIES        COMPANIES       ELIMINATIONS       CONSOLIDATED
                                       ---------      ---------        ---------       ------------       ------------
        Assets
-------------------------------
<S>                                  <C>              <C>              <C>              <C>               <C>
Current assets:
 Cash and cash equivalents           $    60,912      $     1,438      $    61,829      $        --       $   124,179
 Accounts receivable, net                 97,077           34,326          201,261               --           332,664
 Inventories                              30,794           20,360           68,033               --           119,187
 Other current assets                     41,115            2,169           92,608               --           135,892
 Due from affiliates                      95,391           69,540               --         (164,931)               --
                                     -----------      -----------      -----------      -----------       -----------
  Total current assets                   325,289          127,833          423,731         (164,931)          711,922
                                     -----------      -----------      -----------      -----------       -----------
Property, plant and equipment,
  net                                    145,123           52,940          295,494               --           493,557
Investment in subsidiaries               690,451           20,949           69,773         (781,173)               --
Notes receivable from
  affiliates                             414,821          178,085           70,713         (663,619)               --
Goodwill, net                            423,392           82,770          470,363               --           976,525
Other assets, net                         58,259              655           25,250               --            84,164
                                     -----------      -----------      -----------      -----------       -----------
Total Assets                         $ 2,057,335      $   463,232      $ 1,355,324      $(1,609,723)      $ 2,266,168
                                     ===========      ===========      ===========      ===========       ===========
  Liabilities and Stockholders'
            Investment
-------------------------------
Current liabilities:
Accounts payable                     $   113,370      $    27,612      $   141,816               --       $   282,798
Accrued liabilities                      103,538           15,866          116,892               --           236,296
Current maturities of long-
 term debt                                 1,539               50            3,687               --             5,276
Due to affiliates                         72,518           45,744           46,669      $  (164,931)               --
                                     -----------      -----------      -----------      -----------       -----------
    Total current liabilities            290,965           89,272          309,064         (164,931)          524,370
                                     -----------      -----------      -----------      -----------       -----------
Long-term debt, net of
current maturities                     1,051,844               32           15,127               --         1,067,003
Other noncurrent liabilities              63,957           14,420           53,214               --           131,591
Notes payable to affiliates               91,711               --          571,908         (663,619)               --
                                     -----------      -----------      -----------      -----------       -----------
  Total liabilities                    1,498,477          103,724          949,313         (828,550)        1,722,964
                                     -----------      -----------      -----------      -----------       -----------
Mandatorily redeemable
 convertible trust preferred
 securities                               55,250               --               --               --            55,250
Stockholders' investment:                503,608          359,508          406,011         (781,173)          487,954
                                     -----------      -----------      -----------      -----------       -----------
Total Liabilities & SH Invest        $ 2,057,335      $   463,232      $ 1,355,324      $(1,609,723)      $ 2,266,168
                                     ===========      ===========      ==========       ============      ===========

</TABLE>

                                      -15-

<PAGE>



11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
 CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2002
                       (AMOUNTS IN THOUSANDS - UNAUDITED)

<TABLE>
<CAPTION>
                                          DURA                        NON-
                                        OPERATING    GUARANTOR      GUARANTOR
                                         CORP.       COMPANIES      COMPANIES     ELIMINATIONS   CONSOLIDATED
                                        -------       ---------     ---------     ------------   ------------
<S>                                   <C>             <C>             <C>             <C>             <C>
Revenues                              $ 287,517       $ 104,879       $ 287,393       $ (12,506)      $ 667,283
Cost of sales                           250,693          80,608         258,517         (12,506)        577,312
                                      ---------       ---------       ---------       ---------       ---------
  Gross profit                           36,824          24,271          28,876              --          89,971
Selling, general and
 administrative expenses                 15,761           4,031          15,845              --          35,637
Facility consolidation and other
 charges                                  1,863              --          19,225                          21,088
Amortization expense                        184               1             104              --             289
                                      ---------       ---------       ---------       ---------       ---------
 Operating income                        19,016          20,239          (6,298)             --          32,957
Interest expense, net                    13,049             (26)          7,949              --          20,972
                                      ---------       ---------       ---------       ---------       ---------
 Income before provision for
 income taxes, equity in
   (earnings) of affiliates and
   minority interest                      5,967          20,265         (14,247)             --          11,985
Provision for income taxes                5,330           6,378           4,244              --          15,952
Equity in (earnings) of
 affiliates, net                          5,429              --          (1,439)         (3,990)             --
Minority interest-dividends on
 trust preferred securities, net            601              --              --              --             601
Dividends (to)/ from affiliates            (825)             --              --             825              --
                                      ---------       ---------       ---------       ---------       ---------
   Income (loss) before
    extraordinary item                   (4,568)         13,887         (17,052)          3,165          (4,568)
Extraordinary item                       (3,422)             --              --              --          (3,422)
                                      ---------       ---------       ---------       ---------       ---------

   Net income (loss)                  $  (7,990)      $  13,887       $ (17,052)      $   3,165       $  (7,990)
                                      =========       =========       =========       =========       =========

</TABLE>

                                      -16-

<PAGE>


11. CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
    FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
  CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2002
                             (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
                                          DURA                                NON-
                                          OPERATING        GUARANTOR         GUARANTOR
                                          CORP.            COMPANIES          COMPANIES      ELIMINATIONS     CONSOLIDATED
                                        ----------         ---------         ----------      ------------     ------------
<S>                                     <C>               <C>               <C>               <C>               <C>
Revenues                                $   561,683       $   197,816       $   549,215       $   (25,250)      $ 1,283,464
Cost of sales                               492,758           153,164           496,473           (25,250)        1,117,145
                                        -----------       -----------       -----------       -----------       -----------

Gross profit                                 68,925            44,652            52,742                --           166,319
Selling, general and
 Administrative expenses                     31,353             7,885            30,666                --            69,904
Facility consolidation and
 other charges                                1,863                --            19,225                --            21,088
Amortization expense                            474                 3               208                --               685
                                        -----------       -----------       -----------       -----------       -----------
 Operating income                            35,235            36,764             2,643                --            74,642
Interest expense, net                        27,154               (50)           16,414                --            43,518
                                        -----------       -----------       -----------       -----------       -----------
 Income before provision for
   income taxes, equity in
   (earnings) losses of affiliates
   and minority interest                      8,081            36,814           (13,771)               --            31,124
Provision for income taxes                    6,472            12,113             4,640                --            23,225
Minority interests and equity in
 (earnings) losses of affiliates,
 net                                         (4,455)               --            (2,581)            7,036                --
Minority interest-dividends on
 Trust preferred securities, net              1,243                --                --                --             1,243
Dividends (to)/ from affiliates              (1,835)               --                --             1,835                --
                                        -----------       -----------       -----------       -----------       -----------
   Income (loss) before
    extraordinary item                        6,656            24,701           (15,830)           (8,871)            6,656
Extraordinary item                           (3,422)               --                --                --            (3,422)
                                        -----------       -----------       -----------       -----------       -----------
   Net income (loss)                    $     3,234       $    24,701       $   (15,830)      $    (8,871)      $     3,234
                                        ===========       ===========       ===========       ===========       ===========

</TABLE>

                                      -17-

<PAGE>



11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
            CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE
                         SIX MONTHS ENDED JUNE 30, 2002
                       (AMOUNTS IN THOUSANDS - UNAUDITED)

<TABLE>
<CAPTION>

                                             DURA                         NON-
                                          OPERATING     GUARANTOR       GUARANTOR
                                            CORP.       COMPANIES       COMPANIES      ELIMINATIONS    CONSOLIDATED
                                          ---------     ----------      ---------      ------------    ------------
<S>                                       <C>             <C>             <C>             <C>             <C>
OPERATING ACTIVITIES:
 Net income                               $   3,234       $  24,701       $ (15,830)      $  (8,871)      $   3,234
 Adjustments to reconcile net
  income to net cash
  provided by (used in)
  operating activities:
 Depreciation and amortization               13,429           4,778          19,116              --          37,323
 Deferred income taxes                        5,014              --           4,534              --           9,548
 Equity in (earnings) of affiliates
  and minority interest                      (4,455)             --          (2,581)          7,036              --
Extraordinary item                            3,422              --              --              --           3,422
 Changes in other operating
  items                                      76,165          (5,845)        (17,201)             --          53,119
                                          ---------       ---------       ---------       ---------       ---------
     Net cash provided by (used
      in) operating activities               96,809          23,634         (11,962)         (1,835)        106,646
                                          ---------       ---------       ---------       ---------       ---------
INVESTING ACTIVITIES:
 Net proceeds from disposition of
  businesses                                 31,122              --              --              --          31,122
 Capital expenditures, net                   (5,157)         (2,825)        (17,953)             --         (25,935)
                                           ---------       ---------       ---------      ---------       ---------
     Net cash provided by (used in)
       investing activities                  25,965          (2,825)        (17,953)             --           5,187
                                          ---------       ---------       ---------       ---------       ---------
FINANCING ACTIVITIES:
 Short-term borrowings
  (repayments), net                         (41,490)             --         (16,627)             --         (58,117)
 Long-term repayments, net                 (267,060)            (24)        (39,135)             --        (306,219)
Proceeds from issuance of Senior
  Notes                                     350,000              --              --              --         350,000
Debt issue costs                            (10,964)             --              --              --         (10,964)
 Debt financing (to)/from affiliates       (114,445)        (19,369)        133,814              --              --
 Proceeds from issuance of
  common stock and exercise
  of stock options                            3,704              --              --              --           3,704
 Other, net                                     239              --              --              --             239
 Dividends paid                                  --          (1,835)             --           1,835              --
                                          ---------       ---------       ---------       ---------       ---------
     Net cash provided by (used in)
       financing activities                 (80,016)        (21,228)         78,052           1,835         (21,357)
                                          ---------       ---------      ----------       ---------      -----------
EFFECT OF EXCHANGE RATE CHANGES ON
CHANGES ON CASH                               7,461              --          (6,047)             --           1,414
                                          ---------       ---------       ---------       ---------       ---------
NET INCREASE (DECREASE)
 IN CASH AND CASH
 EQUIVALENTS                                 50,219            (419)         42,090              --          91,890
CASH AND CASH
 EQUIVALENTS:
 Beginning of period                         10,693           1,857          19,739              --          32,289
                                          ---------       ---------       ---------       ---------       ---------
 End of period                            $  60,912       $   1,438       $  61,829       $      --       $ 124,179
                                          =========       =========       =========       =========       =========
</TABLE>


                                      -18-
<PAGE>




11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
              CONSOLIDATING BALANCE SHEETS AS OF DECEMBER 31, 2001
                             (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
                                         DURA                          NON-
                                       OPERATING        GUARANTOR      GUARANTOR
                                         CORP.          COMPANIES      COMPANIES         ELIMINATIONS      CONSOLIDATED
                                       --------         ---------      -----------       ------------      ------------
<S>                                   <C>              <C>              <C>              <C>                <C>
           Assets
------------------------------
Current assets:
 Cash and cash equivalents            $    10,693      $     1,857      $    19,739                --       $    32,289
 Accounts receivable, net                 113,655           25,205          154,616                --           293,476
 Inventories                               34,425           17,591           64,492                --           116,508
 Other current assets                      47,909            1,249           77,209                --           126,367
 Due from affiliates                      149,969           63,358            2,241       $  (215,568)               --
                                      -----------      -----------      -----------       -----------       -----------
  Total current assets                    356,651          109,260          318,297          (215,568)          568,640
                                      -----------      -----------      -----------       -----------       -----------
Property, plant and equipment,
 net                                      184,461           48,554          283,502                --           516,517
Investment in subsidiaries                648,053            3,489           66,926          (718,468)               --
Notes receivable from
 affiliates                               278,213          146,409           70,711          (495,333)               --
Goodwill, net                             429,663           82,769          450,035                --           962,467
Other assets, net                          47,989              510           25,481                --            73,980
                                      -----------      -----------      -----------       -----------       -----------
                                      $ 1,945,030      $   390,991      $ 1,214,952       $(1,429,369)      $ 2,121,604
                                      ===========      ===========      ===========       ===========       ===========
   Liabilities and Stockholders'
            Investment
Current liabilities:
Accounts payable                      $   105,430      $    17,655      $   126,739      $         --       $   249,824
Accrued liabilities                        71,248           12,522           93,557                --           177,327
Current maturities of long-
 term debt                                 42,122               50           18,675                --            60,847
Due to affiliates                          65,760           33,999          115,809          (215,568)               --
                                      -----------      -----------      -----------       -----------       -----------
    Total current liabilities             284,560           64,226          354,780          (215,568)          487,998
                                      ===========      ===========      ===========       ===========       ===========
Long-term debt, net of
 current maturities                       962,350               56           53,173                --         1,015,579
Other noncurrent liabilities               61,117           12,606           46,657                --           120,380
Notes payable to affiliates                84,625           23,851          386,857          (495,333)               --
                                      -----------      -----------      -----------       -----------       -----------
  Total liabilities                     1,392,652          100,739          841,467          (710,901)        1,623,957
                                      -----------      -----------      -----------       -----------       -----------
Mandatorily redeemable
 convertible trust preferred
 securities                                55,250               --               --                --            55,250
Stockholders' investment:                 497,128          290,252          373,485          (718,468)          442,397
                                      -----------      -----------      -----------       -----------       -----------
                                      $ 1,945,030      $   390,991      $ 1,214,952       $(1,429,369)      $ 2,121,604
                                      ===========      ===========      ===========       ===========       ===========
</TABLE>

                                      -19-

<PAGE>



11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
 CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2001
                             (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>

                                          DURA                              NON-
                                         OPERATING        GUARANTOR      GUARANTOR
                                          CORP.           COMPANIES      COMPANIES          ELIMINATIONS     CONSOLIDATED
                                          -----           ---------      ---------          ------------     ------------
<S>                                     <C>               <C>               <C>               <C>               <C>
Revenues                                $ 314,182         $  82,812         $ 282,432         $ (13,105)        $ 666,321
Cost of sales                             271,879            65,518           253,018           (13,105)          577,310
                                        ---------         ---------         ---------         ---------         ---------
  Gross profit                             42,303            17,294            29,414                --            89,011
Selling, general and
 administrative expenses                   20,060             3,733            12,306                --            36,099
Amortization expense                        3,239               587             2,869                --             6,695
                                        ---------         ---------         ---------         ---------         ---------
 Operating income                          19,004            12,974            14,239                --            46,217
Interest expense, net                      14,024               (62)           10,654                --            24,616
                                        ---------         ---------         ---------         ---------         ---------
 Income before provision for
   income taxes, equity in
   (earnings) of affiliates and
   minority interest                        4,980            13,036             3,585                --            21,601
Provision for income taxes                  3,206             3,319             1,536                --             8,061
Minority interests and equity in
 (earnings) of affiliates, net            (11,766)               --            (1,124)           12,890                --
Minority interest-dividends on
 trust preferred securities, net              674                --                --                --               674
Dividends (to)/ from affiliates                --              (684)             (681)            1,365                --
                                        ---------         ---------         ---------         ---------         ---------
  Net income (loss)                     $  12,866         $  10,401         $   3,854         $ (14,255)        $  12,866
                                        =========         =========         =========         =========         =========


</TABLE>

                                      -20-

<PAGE>



11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
  CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2001
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>
                                          DURA                         NON-
                                       OPERATING      GUARANTOR     GUARANTOR
                                          CORP.       COMPANIES      COMPANIES   ELIMINATIONS   CONSOLIDATED
                                       ---------      ---------      ---------   ------------   ------------
<S>                                 <C>            <C>            <C>            <C>            <C>
Revenues                            $  615,931     $  156,738     $  584,544     $  (29,039)    $1,328,174
Cost of sales                          531,661        125,882        518,752        (29,039)     1,147,256
                                     ----------     ----------     ----------     ----------    ----------
  Gross profit                          84,270         30,856         65,792             --        180,918
Selling, general and
 Administrative expenses                40,358          7,393         25,981             --         73,732
Facility consolidation and
 other charges                           1,616            708            305             --          2,629
Amortization expense                     6,165          1,516          6,013             --         13,694
                                     ----------     ----------     ----------    ----------     ----------
 Operating income                       36,131         21,239         33,493             --         90,863
Interest expense, net                   30,203            596         22,350             --         53,149
                                    ----------     ----------     ----------     ----------     ----------
 Income before provision for
   income taxes, equity in
   (earnings) of affiliates and
    minority interest                    5,928         20,643         11,143             --         37,714
Provision for income taxes               4,181          5,687          4,477             --         14,345
Minority interests and equity in
 (earnings) of affiliates, net         (21,622)            --         (1,839)        23,461             --
Minority interest-dividends on
 Trust preferred securities, net         1,285             --             --             --          1,285
Dividends (to)/ from affiliates             --         (1,366)        (1,364)         2,730             --
                                    ----------     ----------     ----------     ----------     ----------
  Net income (loss)                 $   22,084     $   16,322     $    9,869     $  (26,191)    $   22,084
                                    ==========     ==========     ==========     ==========     ==========

</TABLE>

                                      -21-
<PAGE>



11.      CONDENSED CONSOLIDATING GUARANTOR AND NON-GUARANTOR
         FINANCIAL INFORMATION:  (Continued)

                          DURA AUTOMOTIVE SYSTEMS, INC.
            CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE
                         SIX MONTHS ENDED JUNE 30, 2001
                             (AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
                                         DURA                        NON-
                                        OPERATING    GUARANTOR   GUARANTOR
                                         CORP.       COMPANIES    COMPANIES     ELIMINATIONS    CONSOLIDATED
                                        --------     ---------    ---------     ------------    ------------
<S>                                    <C>           <C>           <C>           <C>           <C>
OPERATING ACTIVITIES:
 Net income (loss)                     $  22,084     $  16,322     $   9,869     $ (26,191)    $  22,084
 Adjustments to reconcile net
  income (loss) to net cash
  provided by (used in)
  operating activities:
 Depreciation and amortization            20,726         5,485        21,781            --        47,992
 Deferred income taxes                   (14,708)       14,573         1,719            --         1,584
 Equity in losses of affiliates
  and minority interest                  (16,421)           --        (1,839)       18,260            --
 Changes in other operating
  items                                   73,891        14,374       (22,978)           --        65,287
                                       ---------     ---------     ---------     ---------     ---------
     Net cash provided by (used
      in) operating activities            85,572        50,754         8,552        (7,931)      136,947
                                       ---------     ---------     ---------     ---------     ---------
INVESTING ACTIVITIES:
 Capital expenditures, net                (4,990)       (2,620)      (22,029)           --       (29,639)
                                       ---------     ---------     ---------     ---------     ---------
     Net cash used in investing
      activities                          (4,990)       (2,620)      (22,029)           --       (29,639)
                                       ---------     ---------     ---------     ---------     ---------
FINANCING ACTIVITIES:
 Short-term borrowings, net                3,318            53        (8,445)           --        (5,074)
 Long-term borrowings, net               (75,873)           78       (24,822)           --      (100,617)
 Debt financing (to)/from
  affiliates                            (148,000)      (41,654)      189,654            --            --
 Proceeds from issuance of
  common stock and exercise
  of stock options                           105            --            --            --           105
 Dividends paid                               --        (6,566)       (1,365)        7,931            --
                                       ---------     ---------     ---------     ---------     ---------
     Net cash provided by (used in)
       financing activities             (220,450)      (48,089)      155,022         7,931      (105,586)
EFFECT OF EXCHANGE                     ---------     --------      ---------     ---------    ----------
  RATE ON CASH                           139,927            --      (142,422)           --        (2,495)
                                       ---------     ---------     ---------     ---------     ---------
NET INCREASE (DECREASE)
 IN CASH AND CASH
 EQUIVALENTS                                  59            45          (877)           --          (773)
CASH AND CASH
 EQUIVALENTS:
 Beginning of period                      18,154         1,060        11,224            --        30,438
                                       ---------     ---------     ---------     ---------     ---------
 End of period                         $  18,213     $   1,105     $  10,347     $      --     $  29,665
                                       =========     =========     =========     =========     =========

</TABLE>

                                      -22-

<PAGE>


ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

North American automotive and recreational vehicle production volumes proved to
be solid through the first half of 2002, however we are still cautious about the
outlook for the remainder of the year. European automotive production volumes
are down versus prior year and the outlook is less certain.

RESULTS OF OPERATIONS

The following management's discussion and analysis of financial condition and
results of operations (MD&A) should be read in conjunction with the MD&A
included in our Annual Report on Form 10-K for the year ended December 31, 2001.

COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 2002 TO THE THREE MONTHS ENDED
JUNE 30, 2001

Revenues - Revenues for the three months ended June 30, 2002 were $667.3
million, an increase of $1.0 million, from $666.3 million for the three months
ended June 30, 2001. Factors that favorably impacted sales included increased
volumes in the North American automotive and recreational vehicle markets and
the strengthening of the European currencies in relation to the US dollar.
Offsetting these favorable items were a decrease in sales related to the
divestiture of our Steering Gear, Plastic Products, Australia and Thixotech
businesses along with weakness in the European automotive industry.

Cost of Sales - Cost of sales for the three months ended June 30, 2002 and 2001
were $577.3 million. Cost of sales as a percentage of revenues for the second
quarter of 2002 was 86.5%, which is basically flat compared to 86.6% in the
second quarter of 2001.

Facility Consolidation and Other Charges - In May 2002, Dura divested its
Steering Gear Business. The Steering Gear Business is a machining operation that
utilized a technology that was determined to be non-essential to Dura's
capabilities. This business employs approximately 200 people in England and
generated annual revenue of approximately $20.0 million. The transaction
resulted in a one-time charge of approximately $19.2 million consisting of asset
write-downs and remaining contractual commitments. No tax benefit was recorded
related to this charge. Dura also recorded an additional $1.9 million charge
related to final negotiation of purchase price adjustments associated with the
sale of the Plastics Products Business.

Selling, General, and Administrative - Selling, general, and administrative
expenses for the three months ended June 30, 2002 were $35.6 million a decrease
of $0.5 million, or 1.3%, from $36.1 million for the three months ended June 30,
2001. As a percentage of revenue, selling, general and administrative expenses
decreased to 5.3% for 2002 compared to 5.4% in the second quarter of 2001. The
decrease in cost is primarily the result of the salaried headcount reductions
that occurred during the fourth quarter of 2001.


                                      -23-
<PAGE>



Amortization Expense - Amortization expense for the three months ended June 30,
2002, was $0.3 million a decrease of $6.4 million, or 95.7%, from $6.7 million
for the three months ended June 30, 2001. The decrease is the result of Dura
adopting SFAS No. 142 "Goodwill and Other Intangible Assets". Under SFAS No.
142, goodwill and intangible assets with indefinite lives are no longer
amortized, but reviewed annually, or more frequently if impairment indicators
arise (See Adoption of SFAS No. 142 below).

Interest Expense - Interest expense for the three months ended June 30, 2002 was
$21.0 million a decrease of $3.6 million, or 14.8%, from $24.6 million for the
three months ended June 30, 2001. The decrease in interest expense is due to
debt pay-down during 2001 and the first six months of 2002 and lower interest
rates on LIBOR contracts. This decrease was slightly offset by the higher
interest cost related to the additional issuance of $158.5 million of Senior
Subordinated Notes (see below).

Income Taxes - The effective income tax rate was 133.1% for the three months
ended June 30, 2002 and 37.3% for the three months ended June 30, 2001. The
significant increase in the effective tax rate relates to the divestiture of the
Steering Gear Business. Due to Dura's current tax position in the U.K. we
provided no benefit on the $19.2 million loss recorded during the second quarter
of 2002. In addition, $2.1 million was charged to the provision relating to
certain deferred tax assets associated with the Steering Gear Business. The
overall effective rates differed from the statutory rates as a result of lower
combined foreign tax rates, the effects of state taxes, the provision of a
valuation allowance on certain losses in foreign jurisdictions, as well as the
items discussed above.

Minority Interest - Minority interest for the three months ended June 30, 2002
and June 30, 2001 represents dividends, net of income tax benefits, on the 7 1/2
percent Convertible Trust Preferred Securities ("Preferred Securities") which
were issued on March 20, 1998.

Adoption of SFAS No. 141 and 142 - In July 2001, the FASB issued SFAS No. 141,
"Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets". SFAS No. 141 requires all business combinations initiated after June
30, 2001 to be accounted for using the purchase method of accounting. Under SFAS
No. 142 goodwill and intangible assets with indefinite lives are no longer
amortized, but reviewed annually, or more frequently if impairment indicators
arise. Separable intangible assets that are not deemed to have indefinite lives
will continue to be amortized over their useful lives, but with no maximum life.
The amortization provisions of SFAS No. 142 apply to goodwill and intangible
assets acquired after June 30, 2001. With respect to goodwill and intangible
assets acquired prior to July 1, 2001, Dura is required to adopt SFAS No. 142
effective January 1, 2002. As of June 30, 2002, Dura has completed step one of
the transitional goodwill impairment test. The results of this step have
identified that Dura may have to record an impairment loss related to its
Controls Systems and Other Operating Companies reportable units, as defined
under SFAS No. 142. Based on current estimates, Dura believes the range of the
transitional goodwill impairment to be from $200.0 million to $240.0 million.
Dura will complete step two of the transitional goodwill impairment test prior
to the end of the year. Had the non-amortization provisions of SFAS No. 141 and
142 been adopted January 1, 2001, net income and earnings per share would have
been reported as the following amounts (in thousands, except per share data):


                                      -24-

<PAGE>


<TABLE>
<CAPTION>
                                             Three months ended
                                                  June 30,
                                         ---------------------------
                                            2002               2001
                                         ----------    -------------
<S>                                       <C>           <C>
Net income (loss), as reported            $   (7,990)   $   12,866
Add back goodwill amortization, net of
  tax                                             --         5,886
                                          ----------    ----------
Adjusted net income (loss)                $   (7,990)   $   18,752
                                          ==========    ==========

Basic earnings (loss) per share:
Net income (loss), as reported            $    (0.45)   $     0.72
Goodwill amortization                             --          0.33
                                          ----------    ----------
Adjusted net income (loss)                $    (0.45)   $     1.05
                                          ==========    ==========

Diluted earnings (loss) per share:
Net income (loss), as reported            $    (0.45)   $     0.70
Goodwill amortization                             --          0.30
                                          ----------    ----------
Adjusted net income (loss)                $    (0.45)   $     1.00
                                          ==========    ==========
</TABLE>


COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 2002 TO THE SIX MONTHS ENDED JUNE
30, 2001

Revenues - Revenues for the six months ended June 30, 2002 were $1,283.5 million
a decrease of $44.7 million, or 3.4%, from $1,328.2 million for the six months
ended June 30, 2001. Factors that unfavorably impacted sales included the
divestiture of our Steering Gear, Plastic Products, Australia and Thixotech
businesses along with weakness in the European automotive industry.
Slightly offsetting these unfavorable items was an increase in the North
American automotive and recreational vehicle production volumes and the
strengthening of the European currencies in relation to the US dollar.

Cost of Sales - Cost of sales for the six months ended June 30, 2002 were
$1,117.1 million a decrease of $30.2 million, or 2.6%, from $1,147.3 million for
the six months ended June 30, 2001. Cost of sales as a percentage of revenues
for the first six months of 2002 increased to 87.0% compared to 86.4% in the
first six months of 2001. The corresponding reduction in gross margin is
primarily the result of some difficult program launches that took place in
Europe during the later part of 2001. Cost associated with these launches
extended into the first quarter of 2002 and negatively impacted gross margin. By
the second quarter of 2002 these costs were mostly behind us and operational
efficiency continued to improve in Europe. In addition, North American
automotive and recreational vehicle production volumes increased helping to
positively impact gross margin.

Facility Consolidation and Other Charges - In May 2002, Dura divested its
Steering Gear Business. The Steering Gear Business is a machining operation that
utilized a technology that was determined to be non-essential to Dura's
capabilities. This business employs approximately 200 people in England and
generated annual revenue of approximately $20.0 million. The transaction
resulted in a one-time charge of approximately $19.2 million consisting of asset
write-downs and remaining contractual commitments. No tax benefit was recorded
related to this


                                      -25-
<PAGE>


charge. Dura also recorded an additional $1.9 million charge related to final
negotiation of purchase price adjustments associated with the sale of the
Plastics Products Business.

Selling, General, and Administrative - Selling, general, and administrative
expenses for the six months ended June 30, 2002 were $69.9 million, a decrease
of $3.8 million, or 5.2%, from $73.7 million for the six months ended June 30,
2001. As a percentage of revenue, selling, general and administrative expenses
decreased to 5.4% for 2002 compared to 5.6% for the first six months of 2001.
The decrease in cost is primarily the result of the salaried headcount
reductions that occurred during the fourth quarter of 2001.

Amortization Expense - Amortization expense for the six months ended June 30,
2002 was $0.7 million a decrease of $13.0 million from $13.7 million for the six
months ended June 30, 2001. The decrease is the result of Dura adopting the
non-amortization provisions of SFAS No. 142 "Goodwill and Other Intangible
Assets". Under SFAS No. 142 goodwill and intangible assets with indefinite lives
are no longer amortized, but reviewed annually, or more frequently if impairment
indicators arise (See Adoption of SFAS No. 142 below).

Interest Expense - Interest expense for the six months ended June 30, 2002 was
$43.5 million a decrease of $9.6 million, or 18.1%, from $53.1 million for the
six months ended June 30, 2001. The decrease in interest expense is due to
significant debt pay-down during 2001 and the first half of 2002 and a lower
average borrowing rate. This decrease was slightly offset by the higher interest
cost related to the additional issuance of $158.5 million of Senior Subordinated
Notes (see below).

Income Taxes - The effective income tax rate was 74.6% for the six months ended
June 30, 2002 and 38.0% for the six months ended June 30, 2001. The significant
increase in the effective tax rate relates to the divestiture of the Steering
Gear Business. Due to Dura's current tax position in the U.K. we provided no
benefit on the $19.2 million loss recorded during the second quarter of 2002. In
addition, $2.1 million was charged to the provision relating to certain deferred
tax assets associated with the Steering Gear Business. The overall effective
rates differed from the statutory rates as a result of lower combined foreign
tax rates, the effects of state taxes, the provision of a valuation allowance on
certain losses in foreign jurisdictions, as well as the items discussed above.

Minority Interest - Minority interest for the six months ended June 30, 2002 and
June 30, 2001 represents dividends, net of income tax benefits, on the 7 1/2
percent Preferred Securities which were issued on March 20, 1998.

Adoption of SFAS No. 141 and 142 - In July 2001, the FASB issued SFAS No. 141,
"Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets". SFAS No. 141 requires all business combinations initiated after June
30, 2001 to be accounted for using the purchase method of accounting. Under SFAS
No. 142 goodwill and intangible assets with indefinite lives are no longer
amortized, but reviewed annually, or more frequently if impairment indicators
arise. Separable intangible assets that are not deemed to have indefinite lives
will continue to be amortized over their useful lives, but with no maximum life.
The amortization provisions of SFAS No. 142 apply to goodwill and intangible
assets acquired after June 30, 2001. With respect to goodwill and intangible
assets acquired prior to July 1, 2001, Dura is required to

                                      -26
<PAGE>


adopt SFAS No. 142 effective January 1, 2002. As of June 30, 2002, Dura has
completed step one of the transitional goodwill impairment test. The results of
this step have identified that Dura may have to record an impairment loss
related to its Controls Systems and Other Operating Companies reportable units,
as defined under SFAS No. 142. Based on current estimates, Dura believes the
range of the transitional goodwill impairment to be from $200.0 million to
$240.0 million. Dura will complete step two of the transitional goodwill
impairment test prior to the end of the year. Had the non-amortization provision
of SFAS No. 141 and 142 been adopted January 1, 2001, net income and earnings
per share would have been reported as the following amounts (in thousands,
except per share data):


<TABLE>
<CAPTION>
                                               Six months ended
                                                   June 30,
                                          ------------------------
                                             2002           2001
                                          ---------    ----------
<S>                                       <C>          <C>
Net income (loss), as reported            $   3,234    $   22,084
Add back goodwill amortization,
 net of  tax                                    --         11,922
                                          ---------    ----------
Adjusted net income (loss)                $   3,234    $   34,006
                                          =========    ==========

Basic earnings (loss) per share:
Net income (loss), as reported            $    0.18     $    1.25
Goodwill amortization                            --          0.67
                                          ---------    ----------
Adjusted net income (loss)                $    0.18    $     1.92
                                          =========    ==========

Diluted earnings (loss) per share:
Net income (loss), as reported            $    0.18    $     1.22
Goodwill amortization                            --          0.62
                                          ---------    ----------
Adjusted net income (loss)                $    0.18    $     1.84
                                          =========    ==========
</TABLE>


LIQUIDITY AND CAPITAL RESOURCES

During the first six months of 2002, Dura provided cash from operations of
$106.6 million, compared to $136.9 million in 2001. Cash generated from
operations before changes in working capital items was $53.5 million for the
first six months of 2002 compared to $71.7 million for 2001. Working capital
generated cash of $53.1 million in the first six months of 2002 compared to
$65.3 million in 2001. This reduction in cash generated from working capital is
primarily the result of the strengthening of the European currencies in relation
to the US dollar.

Net cash provided by investing activities was $5.2 million for the first six
months of 2002 as compared to a use of $29.6 million in 2001. Net proceeds from
disposition of businesses provided $31.1 million and net capital expenditures
totaled $25.9 million for the first six months of 2002. The capital expenditures
were primarily for equipment and dedicated tooling purchases related to new or
replacement programs. This compares with net capital expenditures of $29.6
million in 2001.

                                      -27-


<PAGE>

Net cash used in financing activities totaled $21.4 million for the first six
months of 2002 compared with $105.6 million in 2001, principally for the
repayment of outstanding indebtedness.

In connection with the acquisitions of Adwest and Excel, Dura entered into a
$1.15 billion credit agreement. The Credit Agreement provides for revolving
credit facilities of $400.0 million, a $275.0 million tranche A term loan, a
$275.0 million tranche B term loan and a $200.0 million interim term loan
facility.

In April 2002, Dura completed the offering of $350.0 million 8 5/8 percent
senior unsecured notes, due April 2012. The interest on the Senior Notes is
payable semi-annually. Net proceeds from this offering of approximately $341.0
million were used to repay the outstanding balance of the $275.0 million tranche
A term loan, and a portion of the $275.0 million tranche B term loan. Dura then
replaced the remaining tranche B term loan with a $150.0 million tranche C term
loan. Borrowings under the tranche C term loan are based on LIBOR and are due
and payable in December 2008. In conjunction with these transactions, Dura
obtained an amendment to the Credit Agreement to allow for the offering and to
further relax certain financial covenants. Dura also entered into a fixed to
floating interest rate swap (notional amount of $325.0 million) with various
financial institutions that more closely mirrors the cost of its bank debt. In
connection with the repayment of borrowings outstanding under the Credit
Agreement, Dura wrote-off debt financing costs of approximately $3.4 million,
net of income taxes, during the second quarter of 2002. This write-off is
reflected as an extraordinary item in the accompanying condensed consolidated
statements of operations for the three and six months ended June 30, 2002.

As of June 30, 2002, rates on borrowings under the Credit Agreement are based on
LIBOR and were 4.3 percent. The revolving credit facility is available until
March 2005. Borrowings under the interim loan were due and payable in September
2000, and, as further discussed below, were repaid in April 1999. The Credit
Agreement contains various restrictive covenants which limit indebtedness,
investments, rental obligations and cash dividends. The Credit Agreement also
requires Dura to maintain certain financial ratios including minimum liquidity
and interest coverage. Dura was in compliance with the covenants as of June 30,
2002. Borrowings under the Credit Agreement are collateralized by certain assets
of Dura.

The Credit Agreement provides Dura with the ability to denominate a portion of
its revolving credit borrowings in foreign currencies up to an amount equal to
$150.0 million. As of June 30, 2002, Dura had no borrowings outstanding under
the revolver.

At June 30, 2002, Dura had unused borrowing capacity of approximately $371.4
million of which $102.9 million was available under its most restrictive debt
covenant. Dura also utilizes uncommitted overdraft facilities to satisfy the
short-term working capital requirements of its foreign subsidiaries. At June 30,
2002, Dura had no borrowings outstanding under its unsecured overdraft
facilities. At June 30, 2002, Dura had unsecured overdraft facilities available
from banks of approximately $37.1 million. Dura believes the borrowing
availability under its credit agreement, uncommitted overdraft facilities and
funds generated by operations, should provide liquidity and capital resources to
pursue its business strategy for the foreseeable future, with respect to working
capital, capital expenditures, and other operating needs. Dura estimates its
2002 capital expenditures will be approximately $75.0 million.



                                      -28-
<PAGE>


In April 1999, Dura completed the offering of $300 million and Euro 100 million
of senior subordinated notes. The Subordinated Notes mature in May 2009 and bear
interest at 9% per year, which is payable semi-annually. Net proceeds from this
offering of approximately $394.7 million were used to repay the $200.0 million
interim term loan, approximately $78.1 million to retire other indebtedness and
approximately $118.9 million was used for general corporate purposes. In June
2001, Dura completed a similar offering of 9% senior subordinated notes due May
2009 with a face amount of $158.5 million. The interest on these notes is also
payable semi-annually. Unamortized discount and debt issuance costs were $8.5
million, yielding an imputed interest rate of 10%. Net proceeds of approximately
$147.1 million were used to reduce the borrowings outstanding under the
revolving credit facility. These notes are collateralized by guarantees of
certain of Dura's subsidiaries.

Dura is limited as to its ability to declare or make certain dividend payments
or other distributions of assets under its Credit Agreement and Subordinated
Notes. Certain distributions are permitted including a company stock purchase
program, tax sharing arrangements and distributions as required under Dura's
Preferred Securities.

QUARTERLY RESULTS OF OPERATIONS AND SEASONALITY

Dura typically experiences decreased revenues and operating income during the
third calendar quarter of each year due to production shutdowns at OEMs for
model changeovers and vacations. The recreational vehicle market is seasonal in
that sales in the fourth quarter are normally at reduced levels.

EFFECTS OF INFLATION

Inflation potentially affects Dura in two principal ways. First, a significant
portion of Dura's debt is tied to prevailing short-term interest rates which may
change as a result of inflation rates, translating into changes in interest
expense. Second, general inflation can impact material purchases, labor and
other costs. In many cases, Dura has limited ability to pass through
inflation-related cost increases due to the competitive nature of the markets
that Dura serves. In the past few years, however, inflation has not been a
significant factor.

FOREIGN CURRENCY TRANSACTIONS

A significant portion of Dura's revenues during the three and six months ended
June 30, 2002 were derived from manufacturing operations in Europe, Canada and
Latin America. The results of operations and the financial position of Dura's
operations in these countries are principally measured in their respective
currency and translated into U.S. dollars. The effects of foreign currency
fluctuations in such countries are somewhat mitigated by the fact that expenses
are generally incurred in the same currencies in which revenues are generated.
The reported income of these subsidiaries will be higher or lower depending on a
weakening or strengthening of the U.S. dollar against the respective foreign
currency.

A significant portion of Dura's assets at June 30, 2002 are based in its foreign
operations and are translated into U.S. dollars at foreign currency exchange
rates in effect as of the end of each period, with the effect of such
translation reflected as a separate component of stockholders' investment.
Accordingly, Dura's consolidated stockholders' investment will fluctuate
depending upon the weakening or strengthening of the U.S. dollar against the
respective foreign currency.

                                      -29-

<PAGE>


Dura's strategy for management of currency risk relies primarily upon conducting
its operations in such countries' respective currency and Dura may, from time to
time, engage in hedging programs intended to reduce Dura's exposure to currency
fluctuations.

NEW ACCOUNTING PRONOUNCEMENTS

In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations." This statement requires recognition of a liability for any legal
obligations associated with the retirement of a tangible long-lived asset. Any
such liability will be recorded at fair value when incurred and generally
results in an increase to the carrying amount of the related long-lived asset.
This statement will be effective for Dura for the year ending December 31, 2003.
The adoption of this statement will not have a material effect on our results of
operations or financial position.

In July 2001, the FASB issued SFAS No. 144, "Impairment or Disposal of
Long-Lived Assets," which was effective for fiscal years beginning after
December 15, 2001. The provisions of this Statement provide a single accounting
model for impairment of long-lived assets. Dura adopted SFAS No. 144 on January
1, 2002. The adoption of this pronouncement did not have a material impact on
our results of operations or financial position.

In April 2002, the FASB issued SFAS No. 145 "Rescission of FASB Statements No.
4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections".
This statement eliminates the automatic classification of gain or loss on
extinguishment of debt as an extraordinary item of income and requires that such
gain or loss be evaluated for extraordinary classification under the criteria of
Accounting Principles Board No. 30 "Reporting Results of Operations". This
statement also requires sales-leaseback accounting for certain lease
modifications that have economic effects that are similar to sales-leaseback
transactions, and makes various other technical corrections to existing
pronouncements. The adoption of this statement may result in a reclassification
within our results of operations.

FORWARD-LOOKING STATEMENTS

All statements, other than statements of historical fact, included in this Form
10-Q, including without limitation the statements under "Management's Discussion
and Analysis of Financial Condition and Results of Operations" are, or may be
deemed to be, forward-looking statements within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act of 1934, as
amended. When used in this Form 10-Q, the words "anticipate," "believe,"
"estimate," "expect," "intends," and similar expressions, as they relate to
Dura, are intended to identify forward-looking statements. Such forward-looking
statements are based on the beliefs of Dura's management as well as on
assumptions made by and information currently available to Dura at the time such
statements were made. Various economic and competitive factors could cause
actual results to differ materially from those discussed in such forward-looking
statements, including factors which are outside the control of Dura, such as
risks relating to: (i) the degree to which Dura is leveraged; (ii) Dura's
reliance on major customers and selected models; (iii) the cyclicality and
seasonality of the automotive market; (iv) the failure to realize the benefits
of recent acquisitions and joint ventures; (v) obtaining new business on new and
redesigned models; (vi) Dura's ability to continue to implement its acquisition
strategy; and (vii) the highly competitive nature of the automotive supply
industry. All subsequent written and oral


                                      -30-
<PAGE>

forward-looking statements attributable to Dura or persons acting on behalf of
Dura are expressly qualified in their entirety by such cautionary statements.

ITEM 3:    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to our exposures to market risk since
December 31, 2001.


                                      -31-

<PAGE>


                           PART II. OTHER INFORMATION

                 DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES

Item 1.  Legal Proceedings:

         Other than as reported in Dura's 2001 Annual Report on Form 10-K under
         the caption "Legal Proceedings," Dura is not currently a party to any
         material pending legal proceedings, other than routine matters
         incidental to the business of Dura.

Item 4.  Submission of Matters to a Vote of Security Holders:

         The Annual Meeting of Stockholders of Dura Automotive Systems, Inc. was
         held on May 21, 2002. At the meeting, the following matters were
         submitted to a vote of the stockholders of Dura:

         1.       The election of nine directors to serve for one year beginning
                  at the 2002 annual stockholders' meeting and expiring at the
                  2003 annual stockholders' meeting. Each of the nominees Scott
                  D. Rued, Robert E. Brooker, Jr., Jack K. Edwards, James O.
                  Futterknecht, Jr., S.A. Johnson, J. Richard Jones, Eric J.
                  Rosen, Karl F. Storrie and Ralph R. Whitney, Jr. were elected.
                  Each of the individuals nominated to serve as a director
                  received at least 26,973,092 votes representing 75% of the
                  shares eligible to vote.

Item 6.  Exhibits and Reports on Form 8-K:

         (a)      Exhibits

         99.1     Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

         99.2     Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

         (b) Reports on Form 8-K

         During the quarter for which this report is filed, Dura filed the
           following Form 8-K Current Report with the Securities and Exchange
           Commission:

                      1.  Dura's current report on Form 8-K dated April 1, 2002,
                          under Item 5 and Item 7 (Commission File No. 0-21139).

                      2.  Dura's current report on Form 8-K dated April 4, 2002,
                          under Item 5 and Item 7 (Commission File No. 0-21139).

                      3.  Dura's current report on Form 8-K dated May 21, 2002,
                          under Item 4 and Item 7 (Commission File No. 0-21139).


                                      -32-

<PAGE>




                                    SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                 DURA AUTOMOTIVE SYSTEMS, INC.


Date:  August 13, 2002           By /s/ David R. Bovee
                                   --------------------
                                    David R. Bovee
                                    Vice President, Chief Financial Officer
                                    (principal accounting and financial
                                    officer)



<PAGE>

                                 EXHIBIT INDEX

99.1  Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
      Section 906 of the Sarbanes-Oxley Act of 2002

99.2  Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
      Section 906 of the Sarbanes-Oxley Act of 2002