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Stoneridge Completes Acquisition of Hi-Stat

4 January 1999

Stoneridge Completes Acquisition of Hi-Stat; Transaction Accelerates Growth Strategy

    WARREN, Ohio, Jan. 4 -- Stoneridge, Inc.
announced that it had completed its previously announced acquisition of
Hi-Stat Manufacturing Co., Inc., on December 31, 1998.
    "The Hi-Stat acquisition expands our capability to design and manufacture
entire electrical systems for the vehicle markets," said Cloyd Abruzzo,
Stoneridge president and chief executive officer.  "This transaction is
consistent with our expressed strategy of pursuing strategic acquisitions."
    Hi-Stat designs and manufactures sensors, solenoids and switches for
measuring speed, pressure, temperature and fluid level in vehicles.  Hi-Stat
has about 1,700 employees, with manufacturing facilities in Lexington, Ohio,
and Sarasota, Florida.  It expects to record sales of approximately
$157 million for the 12 months ending December 31, 1998.
    The purchase price was approximately $362 million in cash.  The
transaction was financed by a combination of existing cash from Stoneridge
together with funds from a new $425 million senior secured credit facility.
    The transaction was structured with a 338(h)(10) election that allows
Stoneridge to deduct, for tax purposes, the goodwill associated with the
transaction.  The election generates an annual tax benefit of approximately
$8 million, the net present value of which is approximately $62 million.
    "The addition of Hi-Stat strengthens both companies.  Stoneridge gains
products and capabilities, while Hi-Stat will have the benefit of Stoneridge's
resources and global presence.  The strategic fit is a win-win situation for
both companies," Abruzzo said.
    Stoneridge, Inc., headquartered in Warren, Ohio, is a leading independent
designer and manufacturer of engineered electrical and electronic components,
modules and systems principally for the automotive, medium and heavy-duty
truck and agricultural vehicle markets.