Delco Remy International Closes $250 Million Credit Facility with Wachovia

ANDERSON, Ind., June 28 -- Delco Remy International, Inc., a leading supplier of aftermarket and OEM electrical and powertrain/drivetrain products for automotive, heavy duty and industrial applications, today announced that it has completed the agreements and closed the transaction for its $250 million secured, asset based, revolving credit facility with a syndicate of banks, led by Wachovia Bank, National Association and its subsidiary Congress Financial Corporation. This facility replaces the Company's existing secured revolving credit facility of $200 million, which was due to expire on March 31, 2003. The new facility extends through March 31, 2006 and has provisions for annual extensions thereafter. The Company intends to use this facility to refinance borrowings under the Company's existing credit agreement and for general corporate purposes including, but not limited to, general operating and working capital needs.

"Strategically, a long-term borrowing facility that is linked to the asset base of the Company will provide better flexibility and support for the significant growth prospects of the Company," said Raj Shah, Executive Vice President and Chief Financial Officer.