INTERMET Announces Facility Expansion Program

Two production lines replaced, increasing capacity and enhancing component manufacturability

TROY, Mich., Jan. 16 -- In an effort to accommodate projected increases in demand for its ductile-iron components, INTERMET Corporation today announced that it is upgrading two foundries located in Minnesota and Virginia. The modernization project involves the replacement of molding lines that produce ductile-iron cast components. Construction began during the second quarter of last year with expected completion this month.

Phase one of the project involved the replacement of molding equipment in the company's Hibbing Foundry in Hibbing, Minn. The Hibbing facility currently is in full production with its new line. As a result of the upgrade, total annual casting capacity at the plant has been increased by about 65 percent.

The second phase of INTERMET's planned modernization program involves the replacement of one of two molding lines at its New River Foundry in Radford, Va.

The new molding lines are manufactured by DISA Industries, A.S., and have been designed to improve component manufacturability and quality through the use of the latest in production-casting technologies. A DISA model 230A has been installed at INTERMET's Hibbing facility. The New River Foundry, which has over 100,000 tons of annual casting capacity, is expected to be in production with its new DISA model 250C line during the first quarter of 2006. This DISA 250 line is the first installation of the improved performance and capability equipment to be used predominantly for the automotive market in North America. The plant's other molding line has remained in production during construction.

"This project is another indication of our continued commitment to build on our world-class ductile-iron casting capabilities," said INTERMET Ferrous Group Vice President Todd Heavin. "It also is a clear indication that our Hibbing and New River plants are playing key roles in that process."

About INTERMET: With headquarters in Troy, Michigan, INTERMET Corporation is a manufacturer of powertrain, chassis/suspension and structural cast components for the automotive industry. The company has approximately 5,000 employees worldwide. More information is available on the Internet at http://www.intermet.com/ .