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GKN Sinter Metals to Acquire Laurel Manufacturing, Inc.

26 August 1998

GKN Sinter Metals to Acquire Pennsylvania-Based Laurel Manufacturing, Inc.

             Acquisition Will Give Powdered Metal Industry Leader
                      A Presence in U.S. Bearings Market

    AUBURN HILLS, Mich., Aug. 26 -- GKN Sinter Metals, a
subsidiary of GKN plc, and the world's leader in powder metallurgy components,
is to acquire Laurel Manufacturing Inc. of Du Bois, Pennsylvania.  The final
sale is subject to review by the appropriate governmental agencies.
    Laurel Manufacturing is a leading U.S. producer of bearings and other
small powdered metal parts.  Its major customers are the lawn and garden, hand
tool and domestic appliance industries and include Frigidare, Whirlpool,
General Electric, Raytheon and Bosch.  Annual sales for the company were
US$16.2 million in 1996 and US$18.3 million in 1997.
    In announcing the transaction Seifi Ghasemi, President and Chief Executive
of GKN Sinter Metals, said "Laurel will give GKN Sinter Metals a presence in
the U.S. bearings market.  We are the leading manufacturers of powdered metal
bearings in Europe and this acquisition will give us the global presence our
customers demand."
    Dennis Heindl, owner of Laurel said "GKN Sinter Metals is the ideal
purchaser for this business.  With its stated strategy of growth, GKN will
expand Laurel and our employees will benefit from being part of the industry
leader.  This will in turn benefit the people of Du Bois where Laurel is a
major employer."
    GKN Sinter Metals, with 27 locations globally and annual sales in excess
of $500 million, is the world's largest producer of powder metal parts.  The
business employs more than 5,000 people, produces 4,000 parts for the
automotive, lawn and garden, power tool and home appliance markets.  GKN
Sinter Metals is a wholly owned subsidiary of GKN plc, a global industrial
company with annual sales in excess of US$5.4 billion.