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Tesma Announces Settlement In Patent Litigation

22 October 1997

Tesma Announces Settlement In Patent Litigation

    CONCORD, Ont., Oct. 22 /CNW-PRN/ - Tesma International Inc. (TSE:TSM.A;
NASDAQ:TSMAF) today announced that it has signed a settlement agreement with
Stant Manufacturing Inc. of Connersville, Indiana, relating to the July 2,
1997 jury verdict which upheld three U.S. patents owned by Stant. Although
subject to certain confidentiality restrictions, this settlement includes an
immediate payment by Tesma of Cdn. $2.75 million, plus ongoing cross license
and royalty arrangements which permit Tesma to continue to supply currently
approved fuel caps to a North American customer for the duration of the
Company's long-term supply agreement. Excluding the effects of potential
economic recoveries, management currently estimates that the present and
future costs relating to this settlement will be $0.19 per share on a fully
diluted basis, reflected as a one-time charge in fiscal 1998.
    Tesma is a global supplier of highly engineered powertrain, fueling and
cooling systems and components for the automotive industry. Tesma's strong
market presence and strategy for continuing growth results from its unique
focus on Innovation, Engineering and Performance. Tesma employs over 2,600
employees in 18 manufacturing facilities in North America and Europe.

SOURCE  Tesma International Inc.