Remy International, Inc. Successfully Completes New $80 Million Financing

ANDERSON, Ind., Dec. 27, 2005 -- Remy International, Inc. announced today that it has successfully completed an $80 million term loan financing as part of an amendment to the Company's senior secured credit facility. The net proceeds from the term loan were used to pay down existing revolving loans under the Company's existing revolving credit facility, thereby providing incremental liquidity to the Company. The term loan matures on June 30, 2008.

Commenting on the transaction, Tom Snyder, Chief Executive Officer, said: "We are very pleased that the credit markets have responded favorably to our proposal, showing confidence in our plans for moving forward."

Raj Shah, Chief Operating Officer, also commented, "Our increased liquidity provides us with greater flexibility in implementing the initiatives begun in 2005 to improve our competitiveness and financial performance. Our actions include significant cost reductions at the manufacturing level, driven by plant and product rationalization, customer price increases, and substantial administrative and other overhead reductions. Meanwhile, we continue to invest in product technology to support the launches of awarded programs that drive our global growth."

About Remy International, Inc.:

Remy International, Inc., headquartered in Anderson, Indiana, is a leading manufacturer, remanufacturer and distributor of Delco Remy brand heavy-duty systems and Remy brand starters and alternators, diesel engines, locomotive products and hybrid power technology. The Company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. Remy was formed in 1994 as a partial divestiture by General Motors Corporation of the former Delco Remy Division, which traces its roots to Remy Electric, founded in 1896.

Remy International Web Site: http://www.remyinc.com/