INTERMET Plans Temporary Surcharge in Response to Soaring Energy Costs

    TROY, Mich., Feb. 12 INTERMET Corporation ,
one of the world's leading independent manufacturers of cast-metal automotive
components, announced today it plans to implement an energy surcharge on all
products shipped in North America to partially offset recent dramatic
increases in natural gas prices.
    "Since the beginning of 2000, we have seen our natural gas costs skyrocket
to unprecedented levels," said Michael J. Ryan, Executive Vice President of
Operations.  "For this year, our natural gas costs will be double what we were
paying last year."  INTERMET's energy costs have gone from 3.4 percent of
sales in January 2000 to approximately 6.8 percent currently.
    Ryan also said that INTERMET believes its customers should not absorb
these costs, but should pass them on.  "Unfortunately the consumers who buy
our customers' vehicles ultimately must bear these extraordinary energy costs.
    "Our company is heavily reliant on natural gas and electricity for the
processing of raw materials to make our products," said Ryan.  "We have been
forced to absorb these high cost increases with virtually nowhere to go.  In
most cases, INTERMET and other metal-casting companies are at the bottom of
the automotive supply chain and cannot achieve price relief from our utility
vendors."
    The surcharge is expected to be calculated based on the average monthly
New York Mercantile Exchange settlement price and the monthly average of
tonnage shipped from all INTERMET plants to each customer, according to Ryan.
"INTERMET expects to begin discussions soon with its customers to develop a
formula for fair energy-cost 'pass-throughs' that will be based on mutually
acceptable market indexes."
    With headquarters in Troy, Michigan, INTERMET Corporation is a full-
service supplier of powertrain, chassis/suspension and structural components
to the worldwide automotive industry.  The company has more than 7,000
employees at facilities located in North America and Europe.  More information
about the company is available on the Internet at http://www.intermet.com .