American Axle & Manufacturing Confirms 2004 Earnings Estimate

Achieves $200M target for net cash flow provided by operations

DETROIT, Jan. 13 -- American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today announced that it expects to report net income of approximately $160 million, or approximately $3.00 per share, for the year ended December 31, 2004. These results include the impact of a one-time charge of $23.5 million or $0.29 per share related to debt refinancing and redemption activities in the first quarter of 2004 and a charge of $10.0 million or $0.13 per share related to lump-sum voluntary separation payments accepted by 186 hourly associates in the fourth quarter of 2004. Excluding the impact of these charges, AAM's earnings for the full year 2004 would have approximated $3.40 per share.

The company also announced that it achieved its target of $200 million in net cash flow provided by operations in 2004. AAM defines net cash flow provided by operations to be cash flow provided by operating activities less capital expenditures. After deducting $23.0 million of cash dividends paid in 2004, AAM achieved positive free cash flow of approximately $190 million for the year.

"As we previously reported, our sales were lower than expected in the second half of 2004 due to the impact of lower production volumes scheduled by our customers. We also experienced the structural cost impact of higher steel and other metallic prices," said American Axle & Manufacturing Co-Founder, Chairman of the Board and CEO, Richard E. Dauch. "Despite these challenges, we are pleased to report that AAM met its earnings and cash flow guidance for the year 2004."

AAM has scheduled a conference call to review AAM's fourth quarter and full year results on February 2, 2005 at 3:00 p.m. EST. Interested participants may listen to the live conference call by logging onto AAM's investor web site at http://investor.aam.com/ or calling (877) 278-1452 from the United States or (706) 643-3736 from outside the United States.

AAM is a world leader in the manufacture, engineering, design and validation of driveline systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to its locations in the United States (in Michigan, New York and Ohio), AAM also has offices or facilities in Brazil, China, England, Germany, India, Japan, Mexico, Scotland and South Korea.