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American Axle Agreement to Purchase Colfor Manufacturing

12 February 1999

American Axle & Manufacturing Announces Definitive Agreement to Purchase Colfor Manufacturing Inc.

    DETROIT, Feb. 12 -- American Axle & Manufacturing
has announced the signing of a definitive purchase agreement to acquire
100 percent of the issued and outstanding stock of Colfor Manufacturing Inc.
for a cash purchase price ranging between $160 million and $170 million.  The
transaction is subject to normal closing conditions, and is expected to close
during the second quarter of 1999.
    American Axle & Manufacturing (AAM) is a world leader in the design,
engineering and manufacture of driveline systems for light trucks and sport
utility vehicles.  Colfor will be AAM's second acquisition.  AAM's first
acquisition was Scotland-based Albion Automotive (Holdings) Ltd., acquired in
October 1998.
    "The Colfor purchase will allow AAM to expand its product lines and
improve its technological capabilities for forged products, an important part
of our business, while meeting our financial investment criteria," said AAM
Chairman, CEO & President Richard E. Dauch.  "It will also allow us to
continue our strategy of further diversifying our customer base."
    Colfor specializes in precision cold, warm and hot forgings.  It operates
three manufacturing facilities in Ohio.
    American Axle & Manufacturing's product lines include rear axles,
independent front four-wheel drive axles, all-wheel-drive systems, components,
independent rear-drive systems (IRDS), TracRite(TM) differentials, propeller
shafts, steering linkages, anti-roll systems, steering & suspension systems,
and forged products.  American Axle & Manufacturing is headquartered in
Detroit, Michigan.  It has offices and facilities in Michigan; New York;
Tokyo, Japan; Ulm, Germany; the United Kingdom; and it is currently
constructing a manufacturing facility and business office in Guanajuato,
Mexico.
    Certain statements contained in this press release which are not
historical facts contain forward-looking information with respect to the
Company's plans, projections or future performance, the occurrence of which
involve risks and uncertainties that could cause the Company's actual results
or plans to differ materially from those expected by the Company which include
risk factors described in the Company's prospectus dated January 28, 1999 and
filed with the Securities and Exchange Commission.