Arvin and Magneti Marelli Enter Into Cooperation

8 July 1998

Arvin and Magneti Marelli Enter Into Cooperation

    COLUMBUS, Ind.--July 8, 1998--Arvin Industries, Inc. today announced that it has entered into a series of agreements with Magneti Marelli SpA to streamline their auto component manufacturing and distribution activities. Terms were not disclosed.
    Arvin will sell Magneti Marelli its shares in a ride control manufacturing facility in Melfi, Italy. This plant makes struts and assemblies, primarily for the Fiat Punto. Arvin will retain its manufacturing plant in Asti, Italy, which produces both original equipment and replacement ride control products. Separately, Magneti Marelli, through its Brazilian affiliate Cofap, will transfer to Arvin the 60% shareholding in the Cofap-Arvin joint venture not already owned by Arvin. Cofap-Arvin is a manufacturer of original equipment exhaust products. Magneti Marelli will retain its separate exhaust operations in Brazil.
    Bill Hunt, Arvin President and CEO, said "We are pleased to expand our fine relationship with Magneti Marelli. This is an opportunity we want to build upon as we grow together. We are both going to see advantages in the exchange of shares in Italy and Brazil. In addition, we have entered into a replacement parts supply agreement which will provide opportunities for Arvin companies to work with Magneti Marelli in the distribution of exhaust and ride control parts. These agreements will enable each of us to improve utilization and focus on our core customers, serving them better."
    Magneti Marelli has industrial and R&D facilities in 18 countries, where automotive systems and components are manufactured in the areas of: engine control, electronic systems, lighting, thermal systems, exhaust systems, fuel delivery systems, rotating machines, electromechanical components, rear-view mirrors, shock absorbers and lubricants.
    Arvin Industries, Inc. is a global manufacturer of automotive components with 50 manufacturing facilities and 8 technical centers located in 16 countries. Arvin is a leading manufacturer of automotive exhaust systems and ride control products. Our replacement products are sold under various trademarks including Arvin, Maremont, Timax, ANSA and ROSI for exhaust systems; Gabriel shock absorbers; and StrongArm gas charged lift supports.
    For more information on Arvin Industries via the Internet, visit our Corporate Home Page at http://www.arvin.com or our Corporate News on the Net site at http://www.businesswire.com/cnn/arv.htm. For information via fax, please call our News On Demand service at 888-622-1161.