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Hayes Lemmerz Acquires Brazil's Largest Full Line Wheel Producer

30 April 1998

Hayes Lemmerz Acquires Brazil's Largest Full Line Wheel Producer

    ROMULUS, Mich., April 30 -- Hayes Lemmerz International, Inc.
, the world's leading supplier to the transportation industry, of
wheels and brake components to the transportation industry, announced today
that it signed a definitive agreement to purchase an additional 51.1% of its
joint venture in Brazil, Borlem S.A. Empreendimentos Industriais, increasing
Hayes' ownership of Borlem to 98.7%.  Terms of the agreement were not
disclosed.
    Borlem has annual capacity for 4 million automotive steel wheels,
1 million heavy truck steel wheels and, with Hayes' joint venture in Brazil,
Hayes Wheels do Brasil, Ltda., close to 1 million cast aluminum wheels, which
total over $125 million of annual sales.  Major customers include Ford, G.M.,
VW, Fiat, Renault, Mercedes, Volvo, Scania, and Randon.
    "We are impressed with Hayes' commitment to being the leader in this
important and growing Brazilian vehicle market," said Paulo Pusset, who will
remain as president of Borlem.  "With Hayes' technological leadership and
global customer relationships and Borlem's strong market position, we see a
tremendous opportunity to capitalize on the rapidly growing South American
market, where our customers are spending over $15 billion to modernize and
increase capacity."
    "The acquisition of Borlem in Brazil is a key strategic move for Hayes,"
added Ron Cucuz, chairman and CEO of Hayes Lemmerz International, Inc.  "This
acquisition positions Hayes as the number one producer of cast aluminum wheels
for the automotive industry in South America, number two in automotive steel
wheels and number one in steel wheels for heavy trucks making Hayes the clear
market leader.  This is another major step in strengthening our global
position.  We also see significant synergies in bringing Borlem into the Hayes
group of companies.  With this market leadership in South America, our world
class technology, strong global position and significant synergies, we are
excited about the value this key strategic move brings to our customers and
our shareholders."
    Hayes Lemmerz International, Inc., with annual sales of over $1.5 billion,
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.  Hayes has more than
7,000 employees and 23 manufacturing facilities in 11 countries worldwide.

SOURCE  Hayes Lemmerz International, Inc.