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Hayes Lemmerz International Acquires Indian Wheel Maker

14 August 1998

Hayes Lemmerz International Acquires Wheel Producer in India

    PUNE, India, Aug. 14 -- Hayes Lemmerz International, Inc.
, the world's leading supplier of wheels and brake components to
the transportation industry, today announced that it has acquired an
additional 60% of the equity of Hayes' joint venture in India, Kalyani Lemmerz
Limited.
    As a result of this acquisition, Hayes now owns 85% of the equity in
Kalyani Lemmerz Limited.  The remaining 15% is still held by companies in the
Kalyani Group, Hayes Lemmerz's Indian partner in the venture.  Terms of the
transaction were not disclosed.
    Kalyani Lemmerz Limited's plant is located in Chakan near Pune, the center
of India's automotive components manufacturing industry, approximately
100 miles from Mumbai (Bombay).  The plant currently has an annual installed
capacity of 450,000 steel wheels for heavy vehicles and other vehicles and is
increasing this capacity to one million steel wheels.  Major customers of
Kalyani Lemmerz Limited include TELCO, the leading truck manufacturer in
India.
    "This acquisition serves to strengthen our presence in the fast-growing
Indian vehicle market and also expands our network of manufacturing facilities
and enables us to follow our customers around the globe," said Klaus Junger,
president of Hayes' European fabricated wheel business.
    "This transaction builds on the excellent relationship that we have had
with Hayes Lemmerz since 1992.  We look forward to continuing to work with the
Hayes Lemmerz team," said B.N. Kalyani, Chairman of the Board of the Kalyani
Group.  Mr. Kalyani is also Chairman and Managing Director of Bharat Forge
Limited, the flagship of the Kalyani Group, and the largest commercial forging
shop in India, and one of the top five forge shops in the world.
    Hayes Lemmerz International, Inc., with annual sales of over $1.7 billion,
is the world's largest wheel manufacturer and is a leader in the design,
engineering, and manufacture of steel and aluminum wheels and brake drums and
rotors for the automotive and commercial highway markets.  Hayes Lemmerz
International has more than 8,500 employees and 26 manufacturing facilities in
12 countries worldwide.