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Delco Remy International, Inc., Enters Agreement

17 July 1998

Delco Remy International, Inc., Enters Agreement to Acquire Electro Diesel Rebuild

    ANDERSON, Ind., July 17 -- Delco Remy International, Inc.,
, announced today that it has acquired Electro Diesel Rebuild
(EDR), a remanufacturer of starters and alternators, headquartered in Belgium.
EDR is one of the few pan-European rotating electrics manufacturers.  EDR
remanufactures a full line of passenger car and heavy-duty starters and
alternators for the European aftermarket.  The line covers almost all vehicles
registered within Europe -- a market where approximately 200 million passenger
cars and 37 million commercial vehicles are in use -- including most Japanese
and popular American cars.
    Patrick Mobouck, DRI's managing director of European Operations, stated,
"EDR is a key strategic addition to the Delco Remy family of businesses and
complements our recent acquisition of the starter and alternator
remanufacturing operations of Lucas Varity in the United Kingdom.  EDR
provides us with full product coverage for passenger cars, commercial vehicles
and agricultural and construction equipment in Europe.  Its high quality
products, central location in Europe, strong technical staff and customer
base, spread over 15 European countries, the Middle East and Africa, provide
us with the ideal platform from which to grow our European remanufacturing
operations."  Electro Diesel Rebuild's managing director Dirk Van Rompaey will
remain in his current position.
    Delco Remy International, Inc. became a public company with an
initial public offering of stock in December, 1997.  The company designs,
manufactures and distributes electrical, powertrain/drivetrain and related
components for automobiles and light trucks, medium and heavy duty trucks and
other heavy duty vehicles.  Products include starter motors, alternators,
engines, transmissions, traction control systems and fuel systems.
    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.