Trans-Industries, Inc. Completes New Financing Arrangements

Trans-Industries, Inc. Completes New Financing Arrangements 


ROCHESTER HILLS, Mich., Aug. 23  /PRNewswire-FirstCall/ -- Trans-Industries,
Inc. (NASDAQ:TRNI), a manufacturer of lighting products for buses, particle
extraction systems, electronic information systems and software, and related
components for the mass transit and highway markets, today announced the
completion of a new financing agreement with The Huntington National Bank,
replacing Comerica Bank as the Company's principal lender.

On August 18, 2004, the Company closed working capital and term loan agreements
with The Huntington National Bank.  The Company used the proceeds from the
financing to repay its former lender, Comerica Bank, in full.  The new loan
agreement with The Huntington National Bank includes a working capital line of
$6 million plus a secured mortgage loan of $2 million.  The note secured by the
mortgage has a five-year maturity, is amortized over 10 years with a final
balloon payment due at maturity and with an interest rate of 1.75 percent above
the bank's prime lending rate.  The $6 million line of credit is a three-year
facility secured by all of the Company's assets with an interest rate of 1.25
percent above the bank's prime lending rate.

As a condition precedent to closing, the bank required that the Company receive
an infusion of an additional $1.5 million through an equity investment.  In an
earlier investment of $1.5 million made by The Harry E. Figgie, Jr. Trust (the
Trust) on March 4, 2004, the Trust had been granted an option to purchase
additional equity.  The option would have required approval by the Company's
stockholders pursuant to certain National Association of Securities Dealers,
Inc. rules providing for qualitative listing requirements applicable to
securities traded on the Nasdaq National Market and Nasdaq Small Cap Market. 
Due to the bank's closing condition, the option transaction was amended and the
Trust loaned the Company $1.5 million in return for a subordinated convertible
note.  The principal and interest due under the note is convertible into shares
of the Company's preferred stock and warrants to purchase shares of the
Company's preferred stock.  Pursuant to the NASD rules discussed above, the
note is convertible only if the conversion is approved by the Company's
stockholders pursuant to the Company's next annual meeting.

About the Company

The Company is a leading provider of lighting systems and related components to
the mass transit market as well as a supplier of information hardware and
software solutions on Intelligent Transportation Systems (ITS) and mass transit
projects.  ITS utilizes integrated networks of electronic sensors, signs and
software to monitor road conditions, communicate information to drivers and
help transportation authorities better manage traffic flow across their
existing infrastructures.

Forward-Looking Statements

Except for statements of historical fact, this press release includes certain
forward-looking statements based on management's estimate of trends and
economic factors in the markets in which the Company is active, as well as the
Company's business plans.  We have used words such as "may," "will," "expect,"
"anticipate," "believe," "estimate," "plan," "intend," and similar expressions
in this press release to identify forward-looking statements.  In light of
recent securities law developments, including the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, the Company notes that
such forward-looking statements are subject to risks and uncertainties. 
Accordingly, the Company's actual results may differ from those set forth in
such statements.  Significant changes in economic conditions, regulatory or
legislative changes affecting the Company, its competitors, or the markets in
which it is active, or changes in other factors may cause future results to
vary from those expected by the Company.  The Company believes any
forward-looking statements it has made are based on current management
expectations and they are subject to risks and uncertainties.  These risks and
uncertainties include, but are not limited to the following:

   -- A further decline of economic conditions in general and in the mass
      transit industry in particular;
   -- Changes in customer requirements or reduced demand for the Company's
      products and services;
   -- The inability of the Company to successfully implement its
      restructuring program in the informational systems business;
   -- Competitive factors (including the introduction or enhancement of
      competitive products and their successful introduction into the
      marketplace);
   -- Product pricing decreases and component price increases that may
      result in materially reduced gross profit margins for the Company's
      product;
   -- The success of management's decision to change the Company's business
      direction;
   -- Unforeseen increases in operating expenses; and
   -- The inability to attract or retain management, sales, or engineering
      talent.



All of our forward-looking statements should be considered in light of the
above factors and all other risks discussed from time to time in our filings
with the Securities and Exchange Commission.  We do not undertake to update our
forward-looking statements to reflect future events or circumstances.

Visit Trans-Industries at http://www.transindustries.com/ . 

DATASOURCE: Trans-Industries, Inc.



CONTACT:  Kai Kosanke, Chief Financial Officer of Trans-Industries,

[phone]



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

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