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Intermet Announces Purchase of German Foundry

6 January 1999

Intermet Announces Purchase of German Foundry

    TROY, Mich., Jan. 6 -- Intermet Corporation
today announced that it purchased 100% of the shares of Vorpommersche
Eisenwerke GmbH Ueckermunde (VEGU), an iron foundry company in eastern
Germany.  The transaction became effective December 31, 1998.
    VEGU, located 108 miles north of Berlin and nine miles from Poland's
border, produces gray iron, malleable iron, and ductile iron products for the
automotive and fittings markets.  VEGU presently occupies 428,000 square feet
and employs 90 people.  1998 annual sales are expected to be almost DM 13
million.
    VEGU's manufacturing facilities serve a broad European customer base; end-
user automotive customers include Opel, General Motors, Mercedes, Volkswagen,
and Audi.  The Eastern European automotive market is expected to grow as more
Original Equipment Manufacturers (OEMs) and their suppliers move into that
region to take advantage of lower costs.  The company is ISO 9002 certified,
making it compliant with all European quality standards.
    Commenting on the purchase, Laurence Vine-Chatterton, President of
Intermet Europe, said "We are pleased with this acquisition.  The acquisition
of this foundry fits our European growth strategy.  We expect to increase
VEGU's capacity as we expand our presence in Europe, as the purchase of this
Disamatic facility allows us to more economically supply castings to eastern
European markets.  VEGU's disciplined approach to cost control is very similar
to that of Intermet.  It is a profitable operation and has an educated, well-
trained workforce."
    Intermet also has ferrous castings foundries in Neunkirchen, Germany, and
Porto, Portugal, which cast iron brake components and other vehicular parts.
VEGU is strategically positioned to effectively absorb additional capacity
from Neunkirchen.
    With headquarters in Troy, Michigan, Intermet Corporation and its
subsidiaries design and manufacture precision iron and aluminum cast
components for automotive and industrial equipment manufacturers worldwide.
Intermet also produces precision machined components and manufactures cranes
and specialty service vehicles.  The company has more than 6,300 employees at
nineteen operating locations in North America and Europe.  Intermet's internet
address is http://www.intermet.com.
    This news release may include forecasts and forward-looking statements
about Intermet, its industry and the markets in which it operates.  Forward-
looking statements and the achievement of any forecasts or projections are
subject to risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or denied.  Such risks and
uncertainties are fully detailed as a preface to the Management's Discussion
and Analysis of Financial Condition in the Company's 1997 Annual Report for
the year ended December 31, 1997.