Intermet Corporation Announces Intention to Close its Pulaski, Tenn. Manufacturing Facility

FT. WORTH, Texas, Jan. 7, 2008 -- Intermet Corporation, one of the world's leading manufacturers of cast-metal automotive components today announced plans to close its Pulaski, Tenn. facility. The plant is scheduled to ramp down in phases as current jobs are transferred to other Intermet facilities with all operations ceasing in the second half of 2008.

"Actions such as these are never easy but regrettably they are ones we have to take to continue to ensure the highest levels of service and value to our customers," said Jeff Mihalic, president and chief executive officer, Intermet Corporation. "We are continuing to evaluate every aspect of our business in order to become the premier, most diversified manufacturer of cast-metal components for the automotive, commercial-vehicle and industrial markets." Mihalic explained this consolidation is a difficult but important step in that process.

"The closing of Pulaski is in no way a reflection on the performance of our highly-talented and dedicated workforce at Pulaski," Mihalic continued. "Rather it is a case of overcapacity, both within Intermet and the industry as a whole in the face of a declining production forecast for vehicles in North America. The suppliers who will survive in this environment are those who, like us, recognize the need to align fixed costs with the new levels of demand and take the appropriate actions."

"We are working closely with all of our customers to finalize plans for a methodical transition of work to other Intermet locations and an uninterrupted supply of product. We will also work closely with all Intermet employees affected by this closing to help them through this transition."

The Pulaski facility opened in 1990 and produces rocker arm covers, rack & pinion housings, electronic housings and oil filter adapters for the automotive industry. Production of these products will be transferred to existing Intermet die cast facilities in Jackson, Tenn., Minneapolis, Minn., and Palmyra, Mo. The Pulaski plant employs 105 people.

Intermet Corporation is a leading manufacturer of cast-metal components for the automotive, commercial-vehicle and industrial markets. With approximately 2,400 employees, the company is organized into three distinct manufacturing groups: Die Cast, Ferrous and PCPC. More information is available on the Internet at www.intermet.com.