Press Release

Arvin Industries Announces Joint European Power Steering Pump Venture

11/27/96

Arvin and Kayaba form European power steering pump venture

COLUMBUS, Ind.--(BUSINESS WIRE) -- Arvin Industries, Inc. ,
and Kayaba Co. Ltd. of Japan have agreed to form a joint venture for
the manufacture and sale of power steering pumps to European car
makers. The new company, Kayaba Arvin, S.A., is based in a newly
constructed plant in Pamplona, Spain, and will begin production in
1997. Kayaba will own 60 percent of the new Company's shares and Arvin
40 percent.

Kayaba is a leading producer of power steering pumps.  Kayaba-
designed products are lighter, more efficient and quieter than
competing products. The new company will initially serve a rapidly
growing European market.  Historically, many smaller European vehicles
have not featured power steering but recently there has been a
tremendous increase in their use. It is anticipated that over 90
percent of future European vehicles will soon feature power steering
pumps. Kayaba Arvin is well positioned to serve this growing market
from its highly competitive Spanish manufacturing base.

In announcing the new venture, Arvin President V.  William Hunt said,
"Arvin is gratified that the strong ride control partnership
established between Arvin and Kayaba in 1989 has provided the basis
for this expansion into a new area of cooperation. Kayaba-designed
pumps are the right product at the right time for European
automakers. We look forward to another most successful venture with
our outstanding partners at Kayaba."

The new joint venture is yet another major development in the growing
relationship between Arvin and Kayaba.  The companies are partners in
APA/KYB, a leading producer of ride control products for the European
OE market. Earlier this year, the companies announced that they will
collaborate in ride control products on a global basis to serve the
developing vehicle markets

Arvin Industries, Inc., is a global manufacturer of automotive
components with 50 manufacturing facilities and eight technical
centers located in 16 countries.