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American Axle & Manufacturing Announces Agreement to Purchase MSP

11 March 1999

American Axle & Manufacturing Announces Definitive Agreement to Purchase MSP Industries

    DETROIT, March 11 -- American Axle & Manufacturing
has announced the signing of a definitive purchase agreement to
acquire 100 percent of the issued and outstanding stock of MSP Industries
Corporation for a cash purchase price ranging between $55 and $60 million.
The transaction is subject to customary closing conditions and is expected to
close during the second quarter of 1999.
    AAM is a world leader in the design, engineering and manufacture of
driveline systems for trucks, buses, sport utility vehicles, and passenger
cars.  Its first acquisition was Scotland-based Albion Automotive (Holdings)
Ltd., acquired in October 1998.  On February 12, 1999, AAM signed a definitive
purchase agreement to purchase Colfor Manufacturing, a forging and machining
company based in Ohio.
    MSP manufactures precision forged powertain, driveline, chassis and other
components for the automotive industry using cold and warm forging processes.
It operates two manufacturing facilities in Oxford, Michigan and a third one
in Centerline, Michigan.
    "The MSP purchase will provide AAM with substantial opportunities to
expand our technological capabilities and production capacity," said AAM
Chairman, CEO & President Richard E. Dauch.  "It is consistent with our
strategy of expanding our product lines and diversifying our customer base,
and it meets our financial investment criteria."
    MSP President Richard McDermott said, "MSP's unique technological
capabilities combining state-of-the-art metal-forming with lean manufacturing
methods and fully integrated information systems complements AAM's
high-volume, high-quality production abilities; management experience and
expertise; and the demonstrated commitment of its workforce."
    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.
    AAM will fund its purchase of MSP through a portion of the proceeds it
received from its recent sale of $300 million of senior subordinated notes
with a ten-year term at a 9 3/4 percent coupon.  It will use remaining
proceeds from that sale to continue its acquisition strategy, pay down
existing debt, and fund its capital expenditure program.

    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.