INTERMET Files Voluntary Petition for Chapter 11 Reorganization

Secures DIP Financing Commitment

Operations to Continue Uninterrupted

TROY, Mich., Sept. 30 -- INTERMET Corporation today announced that the company has filed for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court in the Eastern District of Michigan. The company expects manufacturing operations to continue without interruption during the reorganization proceedings. INTERMET's European operations are not included in the Chapter 11 filing.

The Chapter 11 filing is in response to the unprecedented rise in raw-material costs, especially for scrap steel, in North America and Europe. INTERMET's cost of scrap steel has increased from an average of approximately $160 per ton at the beginning of 2003 to approximately $395 per ton at the end of August 2004. The company announced on September 17, 2004, that raw-material price increases have been the major contributor to a projected loss for the third quarter of 2004.

To finance its operations to continue the uninterrupted supply of products to its customers, INTERMET has applied to the Bankruptcy Court for interim use of cash collateral with the consent of the agent for the lenders that have a security interest in the cash. The company believes that this source of funds, if permitted for use by the Bankruptcy Court, should be sufficient to operate the business at least through mid-October.

To strengthen its liquidity, INTERMET has been negotiating secured debtor- in-possession (DIP) financing packages of up to $50 million in principal amount with various of its pre-petition lenders. One firm commitment and another detailed proposal have been received and are under review by the company, with resolution expected in a matter of days. In either case, the DIP financing would be subject to various conditions, including satisfactory results of a due diligence investigation and approval by the Bankruptcy Court. Approval by the pre-petition lenders also might be required.

Gary F. Ruff, Chairman and CEO of INTERMET, said, "After a thorough review of our options, we decided to file under Chapter 11 because it provides a measure of stability and the best protection to all our constituents by allowing us to pursue a comprehensive restructuring. The company thus far has made every effort to mitigate the rise in the cost of raw materials, especially scrap steel. However, we operate within an extraordinarily competitive industry already challenged by relentless price and margin compression. When you add in unprecedented raw-material cost increases, it creates a situation that must be addressed."

INTERMET and its financial advisor Conway MacKenzie & Dunleavy are developing a restructuring plan, which will be subject to confirmation by the Bankruptcy Court. This plan will be the culmination of a complete review of the company's current financial condition along with an extensive evaluation of manufacturing operations in North America. INTERMET's restructuring plan will encompass raw-material cost-recovery practices that will be developed in cooperation with its customers and that more accurately reflect current market conditions; improvements in the company's manufacturing operations; and a revised capital structure.

About INTERMET

With headquarters in Troy, Michigan, INTERMET Corporation is a manufacturer of powertrain, chassis/suspension and structural components for the automotive industry. The company has approximately 6,000 employees worldwide. More information is available on the Internet at http://www.intermet.com/ .