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Hayes Wheels Completes $425 Million Acquisition of Lemmerz Holding

30 June 1997

Hayes Wheels Completes $425 Million Acquisition of Lemmerz Holding

    ROMULUS, Mich., June 30, 1997 -- Hayes Wheels International, Inc.
announced today that it has completed its previously announced
acquisition of Lemmerz Holding GmbH, Europe's leading full-line wheel
supplier.  As a result of the transaction, Lemmerz has become a wholly owned
subsidiary of Hayes Wheels and, pending shareholder approval later this year,
the combined company will be renamed Hayes Lemmerz International, Inc.
    "We are now a $1.4 billion company that serves every major OEM in North
America, Europe and Japan, and we hold market leadership in each market we
supply," said Ron Cucuz, chairman and chief executive officer of Hayes Wheels.
"The synergies expected from combining the two companies will provide
additional opportunities for growth in sales and profits and will expand our
position as a leading supplier of wheels and brake products to the worldwide
transportation industry."
    To finance the transaction, Hayes increased its total senior secured
credit facilities from $640.5 million to $740.5 million.  Canadian Imperial
Bank of Commerce acted as Administrative Agent and Merrill Lynch Capital
Corporation as Documentation Agent on the bank financing.  Hayes also issued
$250 million in 9 1/8 percent senior subordinated notes due 2007.  In
addition, Lemmerz shareholders will receive shares of Hayes preferred stock
which will automatically convert into 5.0 million shares of Hayes common stock
upon receipt of shareholder approval.  The total transaction is valued at
approximately $425 million.
    Hayes also announced that its consent solicitation with respect to
proposed amendments to the indenture governing its 11% Senior Subordinated
Notes due 2006 expired today at 11 a.m., New York City time.  Hayes indicated
that it had received consents from the holders of approximately $178 million
aggregate principal amount of the notes, which was sufficient to approve the
proposed amendments.  As a result of the consummation of the Lemmerz
acquisition, the amendments to the indenture have become operative.
    A privately owned company based in Konigswinter, Germany, Lemmerz designs
and produces steel and aluminum wheels for automobiles and heavy-duty
vehicles.
    Hayes Wheels International is a world leader in the design, engineering
and manufacture of steel and aluminum wheels and brake drums and rotors for
the automotive and commercial highway markets in North America, Europe and
Asia.

SOURCE  Hayes Wheels International