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Intermet Agrees on Portuguese Joint Venture

21 May 1998

Intermet Announces Agreement on Portuguese Joint Venture

    TROY, Mich., May 21 -- Intermet Corporation
today announced that it has entered into a joint venture agreement for a
foundry in Porto, Portugal.  The joint venture foundry is named PORTCAST -
FUNDICAO NODULAR, S.A.
    This agreement is with the Portuguese Grupo Jorge de Mello, and involves
Eurofer (Eurofer - Fabrica Europeia de Ferro Maleavel, S.A.).  Under the terms
of the agreement, Intermet and the Grupo Jorge de Mello will each share 50%
ownership with Intermet being responsible for the management of the operation.
    Eurofer is a ferrous castings foundry located in Maia, Porto, Portugal,
about 300 Km north of Lisbon.  The PORTCAST joint venture occupies 34,900
square meters of building on 74,300 square meters of land.
    Eurofer manufactures ductile, gray and malleable iron cast components for
automotive and industrial customers, including Dana Spicer, Bosch, Volvo and
John Deere.  It has achieved ISO 9002 certification, making it fully compliant
with all European quality standards.
    "We need more capacity in Europe, so this foundry is a good fit for our
European growth plan and Portugal is a country with a stable government and
low inflation," said Intermet Chairman and CEO John Doddridge.  "Eurofer is a
large, modern foundry with five molding lines.  Its current volume is about
15,000 metric tons, but we look to double that by the year 2000."
    Karl-Heinz Schwarz, president of Intermet Europe, said this joint venture
reaffirms Intermet's strategy of growth in Europe.  "We will better serve our
customers in western Europe and it will provide a springboard into servicing
the rapid growth on the entire continent."
    Intermet currently operates a ferrous casting foundry in Neunkirchen,
Germany, which casts ductile iron brake components and other vehicular parts.
    With headquarters in Troy, Michigan, Intermet Corporation and its
subsidiaries design and manufacture precision iron and aluminum cast
components for automotive and industrial equipment manufacturers worldwide,
produce precision machined components, cranes and specialty service vehicles,
and provide custom coating applications.  Intermet has more than 6,500
employees at twenty-three operating locations in North America and Europe.
    This news release may include forecasts and forward-looking statements
about Intermet, its industry and the markets in which it operates.  Forward-
looking statements and the achievement of any forecasts or projections are
subject to risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or denied.  Such risks and
uncertainties are fully detailed as a preface to the Management's Discussion
and Analysis of Financial Condition in the Company's 1997 Annual Report for
the year ended December 31, 1997.