RAY Raytech Corp

Raytech Corporation (NYSE: RAY) ("Raytech") today announced that on August 1, 2005, it was notified by the New York Stock Exchange ("NYSE") that Raytech is not in compliance with the NYSE's increased continued listing standards. Raytech is considered "below criteria" due to the fact that its total market capitalization is less than $75 million over a 30-day trading period and its stockholders' equity is less than $75 million. The NYSE will make available on its consolidated tape beginning on August 8, 2005, an indicator, "BC," indicating Raytech is below the NYSE's quantitative continued listing standards. Under the rules and procedures of the NYSE, Raytech must respond to the NYSE within 45 days with a business plan that demonstrates compliance with the continued listing standards. As Raytech announced on June 24, 2005, it does not believe that it can take steps which will permit it to satisfy the financial continued listing criteria of the NYSE within the 18 month cure period provided. In addition, on July 7, 2005, Raytech and The Raytech Corporation Asbestos Personal Injury Trust ("Trust"), its largest shareholder, announced that the Trust intends to undertake a going private transaction of Raytech. As part of that transaction, the Trust entered into a Supplemental Settlement Agreement with shareholders who were the environmental creditors of Raytech in its 2001 Chapter 11 reorganization. The settlement is conditioned upon receiving the approval of the United States Bankruptcy Court for the District of Connecticut after a hearing, which is scheduled for August 16, 2005. Upon completion of the settlement, the Trust will own approximately 90.6% of the outstanding shares of Raytech. The Trust then intends to undertake a short-form merger of Raytech into a newly created subsidiary that is wholly owned by the Trust, terminate the registration of the stock with the Securities and Exchange Commission, and seek to de-list the Raytech common stock from trading on the New York Stock Exchange. The Company is engaged in discussions with NYSE staff regarding the timing of the anticipated going private transaction. Raytech Corporation develops, manufactures and supplies specialty engineered friction and energy absorption components used in oil immersed (wet) and dry transmission and brake systems for on- and off-road vehicles. The Company also makes and markets specialty engineered products for heat resistant, inertia control, and energy absorption applications. Our products are typically found in passenger cars, heavy-duty construction and agricultural equipment, trucks, buses and logging, mining and military vehicles. Raytech Corporation, headquartered in Shelton, Connecticut, operates five manufacturing facilities in the United States, Germany and China as well as two technology and research centers in Indiana and Germany. The Company's operations are strategically situated in close proximity to major customers and within easy reach of geographical areas with demonstrated growth potential. Raytech common stock is listed on the New York Stock Exchange and trades under the symbol "RAY." Company information may be accessed on our Internet website http://www.raytech.com.