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Tesma Announces Conversion of Outstanding Preferred Shares

30 June 1998

Tesma Announces Conversion of Outstanding Preferred Shares

    CONCORD, Ont., June 30 /CNW-PRN/ - Tesma International Inc. (TSE:TSM.A;
NASDAQ:TSMAF) today announced that the holders of all of its outstanding
Convertible Series Preferred Shares have delivered notices of conversion of
such shares into Tesma's Class A Subordinate Voting Shares effective
immediately. Anthony Dobranowski, the Company's Chief Financial Officer,
stated: ``This conversion was anticipated given that the preferred shares were
convertible at $11.025, and the timing is helpful as it occurs prior to our
July 31st year end.'' He added: ``The conversion creates an immediate economic
benefit for Tesma due to the elimination of the 6.5% after-tax carry on these
shares.'' The conversion will result in the issuance of an additional 5.35
million Class A Subordinate Voting Shares, but with no impact on fully diluted
earnings per share as the conversion was already assumed in fully diluted
earnings calculations.
    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 2,900
employees in 19 manufacturing facilities in North America and Europe.