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Delco Remy Announces Joint Venture in Brazil

13 July 1998

Delco Remy International, Inc., Announces New Joint Venture-Brazil

    ANDERSON, Ind., July 10 -- Delco Remy International, Inc.,
of the United States and privately-held Irmaos Zen S.A. of Brazil
have announced a joint venture to manufacture and distribute a new line of
automotive electrical components in Brazil and South America.
    A new subsidiary, Delco Remy Brazil, which is 70% Delco Remy owned, will
build a new version of the Delco Remy International, Inc., technologically
advanced, gear-reduction starters.  The new models are engineered for initial
original equipment installations on compact cars produced by General Motors do
Brasil and Volkswagen Brasil.
    A new ISO 9001 facility located in the city of Brusque in Santa Catarina,
Brazil, is slated for first DRI production on August 1, 1998.  Production will
also include OEM and aftermarket starter motor components for domestic and
export markets.  The joint-venture company's product lines will potentially
expand to serve Delco Remy heavy-duty customers in Brazil.  Delco Remy
International, Inc., currently supplies heavy-duty starters and alternators in
Brazil to Mercedes Benz, Volkswagen, Ford, Caterpillar and Cummins Engine.
The Santa Catarina facility will also become a key export platform to serve
growing automotive and heavy-duty vehicle markets in Latin America and Europe.
    Delco Remy International, Inc., Chairman Harold K. Sperlich called the new
partnership a significant alliance that will position the largest U.S.
producer of starters and heavy-duty alternators as a major factor in a
positive growth industry for South America.
    "We've continued our acquisition strategy to diversify our customer base
around the world.  Zen has a proven track record and efficient distribution
channels which will support our long-range diversification and growth
strategies," noted Sperlich.
   DRI Director of Latin American Operations, C. Robert Padgett, stated, "For
years the Brazilian OEMs have asked us to bring our technology to Brazil.
With our new venture, we will supply manufacturing and engineering support in
Brazil to fulfill their total requirements."
    Irmaos Zen Co-Directors, Roberto Zen and Nelson Zen Filho, welcomed the
new joint venture with Delco Remy International.  "We have developed a strong
business presence in our country and around the world over the years.  This
venture with DRI will take us to new levels of technology, productivity and
growth in the OEM and aftermarkets."
    Irmaos Zen is a manufacturer of starter components located in southern
Brazil.  The company is a significant participant in world aftermarkets and a
quality supplier of OEM components to Delco Remy International and other
electrical rotating equipment original manufacturers.
    Delco Remy International, Inc., designs, manufactures, remanufactures and
distributes electrical, powertrain/drivetrain and related components for
automobiles and light trucks, medium and heavy-duty trucks and other heavy-
duty vehicles.  The company's products include starter motors, alternators,
engines, transmission, traction control systems and fuel systems.  The company
serves the aftermarket and the original equipment manufacturer market,
principally in North America as well as in Europe, Latin America and Asia
Pacific.
    Statements in this press announcement, which are not historical facts, are
forward-looking statements that involve certain risks and uncertainties,
including, but not limited to risks associated with the uncertainty of future
financial results, acquisition, additional financing requirement, development
of new products and services, the effect of competitive products or pricing,
the effect of economic conditions and other uncertainties detailed in the
Company's filings with the Securities and Exchange Commission.