Linamar Announces Intent to Establish First Chinese Facility

GUELPH, Ontario--April 14, 2005--LINAMAR Corporation (TSX:LNR) is pleased to announce the signing of an Agreement with the City of Wuxi in the province of Jiangsu, China.

The Agreement outlines a commitment on the part of Linamar to lease a facility from the city immediately. It also details the plan of the company to acquire a lot of land 50,000 square meters in size for the purpose of constructing a new manufacturing facility to be initiated within the next 12 to 18 months. The leased facility is required to house the first program won by Linamar for the Chinese Market which will initiate production in the first quarter of 2006. Construction on the new facility will initiate upon the event of additional contract wins.

"We are thrilled to officially put pen to paper for this important investment for Linamar. We continue to see evidence of the huge potential of this market, where a company with Linamar's expertise in machining and assembly is welcomed and needed." said Linamar CEO Linda Hasenfratz.

"We believe that Wuxi's industrial background and infrastructure are ideal for companies like Linamar" Said Director Zhou of the Administrative Committee of Wuxi, National Hi-Tech Industrial Development Zone.

Linamar designs, develops and manufactures precision machined components, modules and systems for engine, transmission and chassis systems primarily for the North American and European automotive marketplace. The company's industrial division is a world leader in aerial lift platform products. The company has nearly 10,000 employees in 35 manufacturing locations, four research and development centers and eight sales offices in Canada, United States, Mexico, Germany, China, Hungary and Japan.