INTERMET Announces Plan to Position Company for Improved Efficiency and Growth

TROY, Mich., May 16, 2006 -- INTERMET Corporation, one of the world's leading manufacturers of cast-metal automotive components, today announced a plan designed to improve overall manufacturing efficiency and reduce costs. A key component of the plan, which is effective immediately, is a reorganization of manufacturing operations into five distinct business groups.

The company also announced that it has secured a replacement $75-million revolving credit facility to help support its plan to sustain and grow its industry position. Goldman Sachs Credit Partners served as lead arranger and co-syndication agent, and Caspian Capital Advisors, LLC, served as the co- syndication agent and documentation agent. CapitalSource Finance served as administrative agent and collateral agent on the new facility, which will replace the existing revolving facility and provide the company with as much as $35 million in additional liquidity over the term of the new facility.

"We certainly appreciate the support shown by Goldman Sachs and Caspian Capital," said Interim CEO Gil West. "We believe their efforts to assemble this new financing package demonstrate their belief in our company."

INTERMET's new organizational structure allows for increased autonomy at the company's casting plants, giving each facility greater financial and operational control of its business, improving overall responsiveness to customers and reducing overhead. As a result of these actions, the company's corporate staff is being reduced and critical functions have been transferred to the new business groups. Overall, the company believes the plan will produce ongoing cost savings.

Commenting on the company's reorganization, West said, "In this especially competitive industry environment, the company must be able to operate more efficiently while still maintaining high levels of customer service and product quality. After a thorough review of our business, we have developed a streamlined organizational structure that will enable INTERMET to better focus on profitability and exercise the flexibility necessary in a rapidly changing automotive industry."

The five business groups in the plan, which will each be managed by Group Presidents, are as follows:

Domestic Ferrous Group - Archer Creek Foundry in Lynchburg, Va.; Columbus Foundry in Columbus, Ga.; Hibbing Foundry in Hibbing, Minn.; and New River Foundry in Radford, Va. The Domestic Ferrous Group is headed by Steve Lake, who recently returned to INTERMET.

Die Casting Group - Jackson Die Casting Plant in Jackson, Tenn.; Minneapolis Plant in New Hope, Minn.; and Pulaski Plant in Pulaski, Tenn. The Die Casting Group is headed by Todd Heavin, formerly INTERMET's Vice President, Ferrous Metals.

Monroe City Group - Monroe City Aluminum and Zinc plants in Monroe City, Mo., and Palmyra Magnesium Plant in Palmyra, Mo. Eric Showalter is President of the Monroe City Group. Previously, Showalter was General Manager of INTERMET's Missouri operations.

PCPC Group - Stevensville PCPC (Pressure Counter Pressure Casting) Plant in Stevensville, Mich., and Jackson PCPC Plant in Jackson, Tenn. The PCPC Group is managed by Don Hays. Previously, Hays was COO of Diversified Diemakers, Inc., and General Manager of INTERMET's Monroe City operations.

Europe Group - Neunkirchen Foundry in Neunkirchen, Germany; Porto Foundry in Porto, Portugal; and Ueckermunde Foundry in Ueckermunde, Germany. Laurence Vine-Chatterton continues as President of the Europe Group.

To further simplify the company and allow its sales function to more effectively interact with both the plants and their customers, INTERMET's customer account contacts now will be embedded directly in their respective business groups. Engineering and design activities also will operate predominately at the plant level providing further enhanced customer responsiveness.

"We are working closely with our customers to ensure a seamless transition," said Interim President Jeff Mihalic. "We appreciate the support demonstrated by our customers throughout this transformation."

About INTERMET: With headquarters in Troy, Michigan, INTERMET Corporation is a leading manufacturer of powertrain/drivetrain, chassis/structural, and interior/electronics cast components for the automotive, commercial-vehicle and industrial markets. The company has approximately 5000 employees worldwide. More information is available on the Internet at http://www.intermet.com/ .