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Delco Remy Intl & GM Service Parts Operations Sign New Agreement

27 August 1998

Delco Remy International & General Motors Service Parts Operations Sign New Heavy-Duty Distribution Agreement

    ANDERSON, Ind., Aug. 27 -- Delco Remy International, Inc.
, and GM Service Parts Operations (SPO), a division of General
Motors Corporation , have signed an agreement to renew their
strategic alliance for the distribution of heavy-duty products to the
independent aftermarket.
    In this new agreement, the demand for genuine Delco Remy heavy-duty
replacement parts will continue to be supplied to the independent aftermarket
through existing ACDelco distributors and newly appointed Delco Remy
distributors.
    Delco Remy International Senior Vice President Thomas R. Jennett stated,
"This agreement renews our long-standing relationship with SPO to sell and
service the market with genuine replacement components.  The expansion of the
Delco Remy distribution ensures that the diverse applications of our
heavy-duty, original equipment (OE) customers are serviced through the
combined efforts of O.E. dealers, ACDelco distributors and Delco Remy
distributors."
    "Renewing this agreement is strategically significant for SPO," said David
V. Bakos, general product manager for batteries/electrical at SPO.  "Delco
Remy International is well-known as a high-quality original equipment
heavy-duty electrical manufacturer, and we are continuing an established
positive business relationship with them."
    Products under this agreement and the brand names under which they will be
sold include:
    -- ACDelco heavy-duty alternators and starters
    -- ACDelco remanufactured heavy-duty alternators and starters
    -- ACDelco heavy-duty alternator and starter service parts
    -- Delco Remy heavy-duty alternators and starters
    -- Delco Remy remanufactured heavy-duty alternators and starters
    -- Delco Remy heavy-duty alternator and starter service parts

    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, transmissions, 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.
    SPO, headquartered in Grand Blanc, Mich., markets automotive replacement
parts and accessories worldwide under the GM and ACDelco brand names.  ACDelco
supplies replacement parts for all makes of vehicles to the independent
aftermarket through the traditional warehouse distributor channel as well as
the consumer-related segment serviced by mass merchandisers and large auto
retailing chains.  GM Parts handles the parts and service needs of GM dealers.
SPO International sells GM parts for North American built vehicles, and
ACDelco markets products for all makes of vehicles in GM Overseas Distribution
Corporation territories and plant countries.  SPO International also manages
the Canadian and Mexican GM Parts and ACDelco aftermarket operations.  SPO has
more than 12,350 hourly and salaried employees, 30 warehousing facilities and
40 sales offices in the United States, Canada, Puerto Rico, Mexico and
12 overseas countries.
    ACDelco product lines include spark plugs, batteries, filters, shock
absorbers, brake parts, chemicals, heating and cooling system parts, fuel
pumps, ignition parts and emissions control parts.  Remanufactured products
such as starters, alternators, power steering pumps, air conditioning
compressors, engines and transmissions are also available.  ACDelco parts are
sold to the consumer through outlets such as auto parts and general discount
stores, service stations and auto repair facilities.  For more information,
visit the ACDelco "On the Edge" web site at http://www.acdelco.com.