Delco Remy Obtains Lynx License for Patented SEMA Electric Motor Technology

    ANDERSON, Ind., Jan. 24 Delco Remy International, Inc.,
has reached a licensing agreement with Lynx Motion Technology of
New Albany, IN, for its patented SEMA (Segmented Electromagnetic Array)
electric motor technology.
    The announcement was made today by Delco Remy CEO Thomas J. Snyder and
Lynx Chairman Roy Kessinger.
    Lynx received the patent for its SEMA technology in 1998.  Chairman
Kessinger said, "We believe the SEMA motor is revolutionary and truly needed
in the electrical motor market.  A partnership of this magnitude with one of
the world's great electrical component manufacturers underscores our faith in,
and the value of, this technology."
    "SEMA technology is a brand new concept in electrical motors that has
proven to be highly efficient," said Snyder of Delco Remy, a tier-one
manufacturer of automotive electrical components.  "It will allow us to grow
in new directions, both in automotive technology and in the very important
field of distributed generation."
    The Lynx licensing agreement provides Delco Remy with:

    *  Exclusive rights to develop, sell, market and distribute products based
       on Lynx technology for on-road drive train applications (including
       series hybrid traction motors, parallel hybrid traction motors,
       electric/fuel cell drive motors and generators connected directly to
       the vehicle drive line).
    *  Exclusive right to the technology for distributed generation
       applications in the 2 kW to 100 kW size range.
    *  Non-exclusive rights to use the technology for belt-driven generators/
       alternators for vehicle applications.

    The Lynx SEMA technology features a brushless, permanent magnet, axial
flux "pancake" motor that offers high (greater than 95%) efficiency, low
weight per horsepower of output (high power density) and low volume per
horsepower of output.  A SEMA motor is much shorter in length but slightly
larger in diameter than a traditional motor.
    The SEMA design results in higher efficiency over a broader range of
speeds than a traditional AC induction motor.  SEMA technology also offers the
same advantages in applications as an electrical generator with improved
efficiency and high power density.
    Delco Remy plans to develop the Lynx technology with iPower LLC, a newly
formed joint venture between Delco Remy and AeroVironment LLC.
    Products based on this technology are targeted for application as
generators for the distributed generation (on-site electric power generation)
market and as traction motors and generators for hybrid electric vehicle
applications.
    Delco Remy and Lynx are already working together to develop two automotive
traction drive motors (15 kW/20hp and 30 kW/40hp output) under a program
partly funded by the U.S. Department of Energy.  This program, called the
Automotive Electric Motor Drive (AEMD) program, is a 3 year, $6 million effort
to develop cost effective traction motors for automotive use.  DOE is
contributing 50% of the cost.
    Lynx was formed in 1996 to commercialize technologies developed by Visual
Computing Systems, Inc., an Indiana R&D firm.
    Delco Remy International, Inc., headquartered in Anderson, Indiana (USA),
became a public company in 1997. The Company designs, manufactures,
remanufactures and distributes electrical, powertrain/drivetrain and related
components and provides core exchange services for automobiles and light
trucks, medium- and heavy-duty trucks and other heavy-duty and industrial
applications.
    Products include starter motors, alternators, engines, transmissions,
torque converters, fuel systems and traction control systems.  Delco Remy
serves the aftermarket and original equipment manufacturer market, principally
in North America, as well as Europe, Latin America and Asia Pacific.
    Statements in this press announcement, which are not historical, are
forward-looking statements that involve certain risks and uncertainties,
including, but not limited to risks associated with the uncertainty of future
financial results, acquisitions, additional financing requirements,
development of new products and services, the effect of competitive products
or pricing, the effect of economic conditions and other uncertainties detailed
from time to time in the Company's filings with the Securities and Exchange
Commission.  More information is available at the company web site:
http://www.delcoremy.com