Delco Remy International Reports Issuance of Senior Subordinated Notes

    ANDERSON, Ind., April 26 Delco Remy International, Inc., a
leading supplier of aftermarket and OEM electrical systems and
powertrain/drivetrain products for automotive, heavy duty and industrial
applications, today reported the closing and issuance of a new Senior
Subordinated Debt issue of $165 million which was increased from the original
target of $100 million.
    The Senior Subordinated Debt carries a coupon of 11.00%, with a maturity
of 8 years and will mature on May 1, 2009.  The proceeds of the issue will be
used to refinance outstanding debt under the Company's $300 million Revolving
Credit and to retire the Subordinated Debentures originally issued to General
Motors.
    Delco Remy's new and existing Senior Subordinated Notes are rated "B2" and
"B" by Moody's Investors Services and Standard and Poor's, respectively.  In
addition, both agencies have affirmed the ratings on Delco Remy's existing
10.625% Senior Subordinated Notes at "B2/B" and 8.625% Senior Notes at "B1/B"
for $140 million at 10.625% due in 2006.

    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.

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