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Intermet Announces Sale of a Subsidiary and Ends a Joint Venture

17 June 1998

Intermet Announces Sale of a Subsidiary and Ends a Joint Venture

    TROY, Mich., June 17 --

    Sale of a Subsidiary

    Intermet Corporation today announced the sale of its
Industrial Powder Coatings, Inc. (IPC) subsidiary to Industrial Powder
Coatings Acquisition Corp., a group of investors led by M.G. Capital, L.L.C.
of Chicago, Illinois.  Industrial Powder Coatings, Inc. was purchased by
Intermet as part of the Sudbury acquisition in December 1996.
    1997 sales of IPC were $62 million.  IPC, based in Norwalk, Ohio, provides
powdered coating services to a number of major automotive and appliance
manufacturers including several Intermet locations.  John Doddridge, Intermet
Chairman and Chief Executive Officer, commented that "although IPC is a leader
in powdered coatings, we felt IPC would have better growth opportunities
inside a different organization and that for Intermet, the sale proceeds will
reduce debt and provide funds for more investment in our foundry operations."

    Joint Venture Bankruptcy

    Intermet also announced that IWESA GmbH, an Intermet joint venture
company, has entered bankruptcy proceedings.  IWESA GmbH is a machining
company located in Saarbrucken, Germany and machines precision parts including
Intermet's castings, principally for the vehicular industry.  IWESA continues
to operate under the protection of a bankruptcy referee.
    Mr. Doddridge said, "We made the initial investment as a minority partner
in October 1996 for a source to machine our German-made castings.  We never
increased our investment, but reluctantly took over management of the
financially troubled operation in August 1997.  This proved to be too late to
financially save without a major cash infusion from Intermet which we declined
to do.  We are confident IWESA will successfully emerge from bankruptcy but
Intermet's financial involvement is ended."

    Financial Impact

    Doretha Christoph, Vice President-Finance and Chief Financial Officer,
said that, "The net impact of the two above-mentioned events is expected to
have little, if any, impact on Intermet's income statement for the second
quarter.  The sale of IPC created nominal gain, and losses from the IWESA
bankruptcy are expected to be primarily attributable to the write-off of IWESA
receivables to Intermet's Neunkirchen foundry, most of which was reserved in
1997."

    Intermet

    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.
Intermet also produces precision machined components and manufactures cranes
and specialty service vehicles.  The company has more than 5,700 employees at
sixteen 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.