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Allied Products Corp'S Verson Division Establishes Joint Venture

15 October 1998

Allied Products Corporation'S Verson Division Establishes European Joint Venture

    CHICAGO, Oct. 14, -- Chicago-based Allied Products
Corporation announced today that its Verson division has formed a
joint venture with Theodor Grabener GmbH & Co. KG of Germany and Automatic
Feed Co. of Napoleon, Ohio, that will help the two American companies more
effectively penetrate the European market for large stamping presses and
related systems.
    The new entity, Verson Pressentechnik GmbH, will be located in
Netphen-Werthenbach, 90 miles north of Frankfurt am Main, Germany, and will
benefit from the resources of the Grabener group of companies.
    The joint venture, in which Verson holds a majority stake, will act as the
main commercial and technical support arm for the activities of both Verson
and Automatic Feed in Europe.  Its European staff will have the responsibility
of marketing Verson and Automatic Feed products to customers throughout
Europe.  Drawing on the strengths of the Grabener group of companies, the
joint venture also will assist in customizing Verson and Automatic Feed
equipment to meet the requirements of European customers, and it will provide
on-going training and service support once the equipment is up and running at
a customer's plant.
    "We are very pleased to team up with these two fine companies to cover the
European market," commented Richard W. Metzger, President of Verson.  "The
Grabener group will enhance Verson's capabilities in the important European
market by providing strong local support in the region.  Consistent with our
strategic goal of becoming a global supplier of stamping solutions to the
automobile industry, Verson is now in a position to provide European customers
the same quality of service, technical assistance and support that we deliver
in North America."
    Richard A. Drexler, Chairman and Chief Executive Officer of Allied
Products, stated:  "The continued globalization of the automobile industry
makes it imperative for Verson to have a strong local presence in the key
markets where our customers operate.  Verson Pressentechnik GmbH gives us an
enhanced presence across Europe -- the world's second most important region in
terms of car production.  Being able to work through an organization attuned
specifically to the European market should open new business opportunities
there for Verson.  The productive capabilities of Verson presses are well
recognized in North America, and now we can bring those advantages to European
manufacturers more effectively than ever."
    Allied Products estimates that the European automobile industry will
invest at least $1 billion in improved presses and related equipment during
the next decade.
    Theodor Grabener GmbH & Co. KG is a group of companies specializing in
machine construction and steel processing.  It includes:  H. Kleinknecht & Co.
GmbH, which  designs, engineers and manufactures a wide variety of CE
compliant control systems; Hydroline Schrupp GmbH & Co. KG, which specializes
in hydraulic presses and systems; and Grabener Maschinentechnik GmbH & KG,
which specializes in reconditioning specialized machinery.
    The other partner in the JV, Automatic Feed Company, is a leading supplier
of specialized coil handling and feeding systems, with a strong presence in
the automotive industry.
    "We see Verson Pressentechnik GmbH as an effective vehicle to penetrate
the European market,"  said Kim Beck, President of Automatic Feed.  "In
particular, the Grabener group provides Automatic Feed the needed local
support and capabilities that our customers require, which will enhance our
ability to grow the business in this important market."

    Headquartered in Chicago, Verson is the only American-owned-and-operated
manufacturer of large body-panel transfer presses.  Its customers include
major automotive and appliance manufacturers, contract stampers and a variety
of other manufacturers.  Allied Products Corporation manufactures large metal
stamping presses and equipment for agriculture and landscape maintenance.
These technologically advanced tools help Allied Products' customers operate
their businesses more effectively and profitably.