Hayes Lemmerz Will Restate Financial Results for Fiscal 2000 And First Quarter of 2001 to Correct Certain Accounting Errors

HAYES LEMMERZ INTERNATIONAL LOGO
Hayes Lemmerz International logo. (PRNewsFoto)[AG]
NORTHVILLE, MI USA 05/22/2001
           Curtis J. Clawson, Recently Named as President and CEO,
                           Is Also Elected Chairman

    NORTHVILLE, Mich., Sept. 5 Summary: Hayes Lemmerz
International will restate financial results for fiscal 2000 and the first
quarter of fiscal 2001 to correct errors in the accounting for certain items,
and to write down the value of certain impaired assets at one of its
manufacturing facilities.  The Company cautions that until the restatements
are completed, the financial statements for fiscal 2000 and the accompanying
independent auditor's report, and for the first quarter of fiscal 2001, should
not be relied upon.  The Company is in discussions with its lenders to resolve
its non-compliance with financial covenants.  The Company has delayed its
announcement of fiscal second quarter results.  Curtis J. Clawson, recently
named as president and chief executive officer, is additionally named
chairman.  Mr. Clawson remains positive about the Company's prospects.

    (Photo:  http://www.newscom.com/cgi-bin/prnh/20010522/HLILOGO )

    Hayes Lemmerz International, Inc. announced that it will
restate its financial results for the fiscal year ended January 31, 2001
(fiscal 2000) and related quarterly periods, as well as for the fiscal quarter
ended April 30, 2001.  The financial restatements will correct errors that the
Company and its auditors, KPMG LLP, have identified in the accounting for
certain items, and write down the value of certain impaired assets at one of
its manufacturing facilities.
    The Company cautioned that until the financial restatements are completed,
its financial statements for fiscal 2000 and the accompanying independent
auditor's report, for the fiscal 2000 quarterly periods, and for the first
quarter of fiscal 2001, should not be relied upon.
    The Company is completing its review of these matters in conjunction with
KPMG.  The Company estimates that the restatement will increase the previously
reported fiscal 2000 net loss of $41.8 million, or $1.41 per share, by at
least $14.7 million, or 50 cents per share, based on what is currently known
in the investigation.  Similarly, the previously reported first quarter 2001
loss of $7.6 million, or 27 cents per share, will increase by at least $27.1
million, or 95 cents per share.
    Earnings before interest, taxes, depreciation, amortization, and non-
recurring charges, including impairment charges (EBITDA), previously reported
as $336.3 million for fiscal 2000, are expected to be reduced by at least
$21.0 million.  EBITDA for the first quarter of fiscal 2001, previously
reported at $72.5 million, are expected to be reduced by at least $9.0
million.
    The expected restatement of fiscal 2000 and fiscal first quarter 2001
results has two components:
    *  The correction of accounting errors unrelated to the asset impairment
charge is expected to increase the net loss for fiscal 2000 by at least $14.7
million, and reduce EBITDA by at least $21.0 million, and to increase the
first quarter 2001 loss by at least $5.0 million and reduce first quarter
EBITDA by at least $9.0 million.
    *  Recognition of the Company's Petersburg, MI, plant as an impaired asset
will increase the net loss for the 2001 first quarter by about $22.1 million
and have no impact on EBITDA.  The Company previously announced that it
intends to close that plant by the end of 2001.

    Approximately half of the accounting errors are related to one
manufacturing plant that has been subject to recurring operating difficulties.
The Company is evaluating restructuring alternatives with respect to that
facility.  After giving effect to the estimated adjustments, in fiscal 2000
that facility had an EBITDA loss of $19.2 million, and in the first quarter of
2001 an EBITDA loss of $10.2 million.
    The Audit Committee of the Board of Directors has been given the
responsibility to investigate these matters.  The Audit Committee has engaged
Skadden, Arps, Slate, Meagher & Flom LLP and Ernst & Young LLP to advise it
during the Committee's review of the accounting issues and compliance with the
Company's accounting policies.
    "These accounting errors occurred because of a failure within certain
parts of the Company to comply with sound and well-established accounting
policies," said John S. Rodewig, chairman of the Audit Committee of the Board
of Directors, and retired president of Eaton Corp.  "Although our
investigation is not complete, we understand the nature of the problem and its
probable impact on prior periods.  The Board will take appropriate action to
hold responsible parties accountable.  Management will take all necessary
steps to ensure full compliance with accounting policies to enable the Company
to issue complete and accurate financial statements for future periods."
    The Company also announced that Curtis J. Clawson, president and chief
executive officer, has been elected chairman, succeeding Ranko "Ron" Cucuz.
    Mr. Clawson, who was named president and CEO effective August 1, said, "I
am focusing my attention on the future and our ability to improve financial
results."  He joined Hayes Lemmerz after successfully improving operations in
previous senior executive positions at American National Can Group and
AlliedSignal Inc.  "I remain excited about the future of Hayes Lemmerz.  We
are identifying significant opportunities for improvement in financial
performance through strategic growth, cost cutting, process improvement, and
disposition of non-core assets.  We also are moving swiftly to strengthen our
bonds with customers, employees and vendors."
    The Company intends to amend and refile its Form 10-K for the year ended
January 31, 2001, and its Form 10-Q for the quarter ended April 30, 2001, as
promptly as possible.  The Company noted that the actual amount of the
restatement, as well as the allocation to prior periods, will not be
definitively determined, and amended reports will not be filed with the
Securities and Exchange Commission, until the review is completed.  The
Company could not give assurance that the finally determined amount of the
restatement will not be materially different than the estimated amount or that
other adjustments might not be necessary.
    As a result of the restatements of the Company's historical operating
results, the Company will not be in compliance with certain of the financial
covenants under its senior secured credit facility as of October 31, 2000,
January 31, 2001, and April 30, 2001.  However, the Company is in discussions
with its lenders to obtain amendments of that facility to cure all covenant
defaults.  The Company said it cannot provide assurance when it will obtain
such amendments.
    Because of time required to complete the work related to these issues, the
Company has delayed its normal announcement of financial results for its
second fiscal quarter ended July 31, 2001.  The Company expects to reschedule
public announcement of its second quarter results and its conference call for
later this month.
    Hayes Lemmerz International, Inc. is one of the world's leading global
suppliers of automotive and commercial highway wheels, brakes, powertrain,
suspension, structural and other lightweight components.  The Company has
annual sales of $2.2 billion with 46 plants, six joint-venture facilities and
more than 14,000 employees worldwide.
    This press release includes forward looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended, which represent the Company's expectations
and beliefs concerning future events that involve risks and uncertainties
which could cause actual results to differ materially from those currently
anticipated.  All statements other than statements of historical facts
included in this release are forward looking statements.  Factors that could
cause actual results to differ materially from those expressed or implied in
such forward-looking statements include the completion of the Audit
Committee's review, which could uncover additional adjustments in presently
unknown areas, the preparation of restated historical financial statements,
final audit adjustments, as well as those factors set forth in our periodic
reports filed with the SEC.  Consequently, all of the forward looking
statements made in this press release are qualified by these and other
factors, risks and uncertainties.

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