Metaldyne Announces Expansion in Asia, Possible Divestiture of Non-Core Business

PLYMOUTH, Mich., Oct. 31, 2005 -- Metaldyne announced today that it will expand its manufacturing location in Pyeongtaek, South Korea. The plant, which currently produces balance shaft modules for Hyundai, will expand to include powder metal connecting rod assemblies and front end modular assemblies. Metaldyne will also add engineering resources in the region.

"Asia is a key growth area for Metaldyne," said Tim Leuliette, Metaldyne chairman, president and CEO. "Since the formation of the company in 2001, we have grown our business in Asia from less than five percent of our total sales to nearly 25 percent by 2010."

Metaldyne is also announcing that it has retained Goldman, Sachs & Co. to explore a possible divestiture of its North American forging business. This business is non-core to Metaldyne and represents approximately 15 percent of the company's total sales. Metaldyne has built a business model on value- added products such as connecting rod assemblies, balance shaft modules, brake corner and transmission modules.

"Metaldyne has reported continued revenue increases and financial improvement through an otherwise sluggish automotive market," said Leuliette. "The divestiture of our non-core North American Forging business would further strengthen our balance sheet and position Metaldyne for additional core business expansion.

"As businesses and markets evolve, the forging industry is consolidating. While this business is attractive for forging specialists, it is not core to Metaldyne."

About Metaldyne

Metaldyne is a leading global designer and supplier of metal-based components, assemblies and modules for transportation-related powertrain and chassis applications including engine, transmission/transfer case, wheel-end and suspension, axle and driveline, and noise and vibration control products to the motor vehicle industry.

Headquartered in Plymouth, Mich., Metaldyne has annual revenues of approximately $2.0 billion. The company employs over 7,500 employees at 45 facilities in 14 countries.

For more information, please visit http://www.metaldyne.com/ .