Delco Remy International Inc. and Court Square Reach Merger Agreement

    ANDERSON, Ind., Feb. 7 Delco Remy International, Inc. (the
"Company") and Court Square Capital Limited ("Court Square"), a
subsidiary of Citigroup, Inc., today announced the execution of a definitive
merger agreement (the "Merger Agreement") in which Court Square agreed to
increase the price of its offer, through its wholly-owned subsidiary DRI
Acquisition LLC, for any and all of the outstanding shares of Class A common
stock of the Company, not currently owned by Court Square from $8.00 per
share, net to the seller in cash, to $9.50 per share (the "Offer").  In
addition, Court Square has agreed to extend the expiration date of the Offer
until at least midnight, New York City time, on Thursday, February 22, 2001
and the Company and Court Square have agreed to pursue a second-step merger
(the "Merger") to acquire any shares not tendered in the Offer at the same
cash price per share to be paid in the Offer.
    At a meeting held yesterday, the special committee of the Board of
Directors of the Company (the "Special Committee") unanimously determined (i)
that the Offer and the Merger Agreement are fair to, and in the best interests
of, the stockholders of the Company, (ii) to recommend that the Board of
Directors of the Company (the "Board") approve the Merger and declare its
advisability, and (iii) to recommend that the stockholders of the Company
accept the Offer and tender their shares pursuant to the Offer.  The Special
Committee's recommendation was based upon careful consideration and review of
the factors set forth in Amendment No. 1 to the Company's Solicitation/
Recommendation Statement on Schedule 14D-9 (the "Amendment") to be filed by
the Company shortly, including the advice of its independent financial
advisor.  The Amendment will be mailed to stockholders of the Company or can
be obtained without charge at the website of the Securities and Exchange
Commission at http://www.sec.gov , or without charge from the Company.
    At a meeting held yesterday, the members of the Board present at the
meeting unanimously (other than Mr. Michael A. Delaney who abstained from
voting) determined that the Merger Agreement and the transactions contemplated
thereby, including the Offer and the Merger, and a Stock Option Agreement
among the Company, Court Square and the Purchaser, and the transactions
contemplated thereby, are advisable and fair to, and in the best interests of,
the stockholders of the Company, and approved and authorized the Merger
Agreement and the Merger.  In addition, the members of the Board present at
the meeting unanimously (other than Mr. Delaney who abstained from voting)
recommended that the stockholders of the Company accept the Offer and tender
their shares pursuant to the Offer and, if necessary, approve and adopt the
Merger Agreement and the Merger.
    As previously reported, Court Square currently owns approximately
6.6 million shares of the Company's outstanding voting stock representing
approximately 37% of the outstanding voting shares.  Court Square also owns
approximately 6.3 million shares of non-voting stock that are convertible into
voting stock and would, if converted and added to the voting shares currently
owned, represent approximately 53% of the outstanding shares.  Affiliates of
Court Square are reported to own or have rights to acquire approximately
3.2 million additional shares.
    The Company, 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.  The Company serves the
aftermarket and original equipment manufacturer market, principally in North
America, as well as in Europe, Latin America and Asia Pacific.  More
information is available on the Company web site at http://www.delcoremy.com .
    The press release may contain forward-looking statements regarding the
Offer for the Company's Class A common stock described herein.  These
statements are identified by words such as "will," "may," "intends," and other
words referring to events to occur in the future.  The statements are based on
information currently available to the Company and are subject to a variety of
risks and uncertainties, including the Company's possible further evaluation
and recommendation with respect to the Offer, any alternatives that may be
pursued or other actions that may be undertaken by the Company, in response
to, or independent of, the Offer or the Merger.  Actual events, actions and
effects of the Offer or the Merger may depend on one or more of these risks
and uncertainties and may vary materially from any future events, actions and
effects described in this press release.  The Company undertakes no obligation
to update any forward-looking statements made in this press release.