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Tesma Announces Completion of U.S. Acquisition

19 March 1998

Tesma Announces Completion of U.S. Acquisition

    CONCORD, Ont., March 19 /CNW-PRN/ - Tesma International Inc. (TSE:TSM.A;
NASDAQ:TSMAF) today announced the completion of the previously announced
acquisition of 100% of Hughes Manufacturing, Inc., (``Hughes'') a Michigan
based supplier of bent tubes to the North American auto industry. This
acquisition provides Tesma with its first manufacturing presence in the U.S.,
and expands its product offerings and technical capabilities in the area of
fueling systems.
    Manfred Gingl, Tesma's President and CEO stated that, ``Although it has
taken considerable time for Tesma to establish its first U.S. operation and
invest some of the proceeds of our June 1997 public offering of Class A
shares, we had to ensure that any acquired business fit within our product
strategy, unique culture and financial objectives. Hughes fit all of our
objectives and we are excited to have finally completed our manufacturing
entry into the U.S.''
    Hughes has experienced an annualized compound growth in sales of over 40%
since 1995, and sales in its most recently completed fiscal year were
approximately $12 million Canadian.
    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 2,850
employees in 19 manufacturing facilities in North America and Europe.

SOURCE  Tesma International Inc.