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GKN Sinter Metals Acquires 100% Interest in Sintered Metal Components

7 April 1999

GKN Sinter Metals Acquires 100% Interest in South Africa-Based Sintered Metal Components (PTY) Limited from Dorbyl

      Wholly-owned Operation Provides World's Largest P/M Parts Producer
     With Potential Growth Opportunity in South African Automotive Market

    AUBURN HILLS, Mich., April 7 -- GKN Sinter Metals today
completed the purchase of Sintered Metal Components (PTY) Limited of
Bellville, South Africa, from Johannesburg-based Dorbyl Automotive
Technologies Limited.
    The announcement was made by the company's president & chief executive
officer, Seifi Ghasemi.
    GKN Sinter Metals, which held a 26 percent stake in South Africa's leading
P/M parts producer, acquired the remaining 74 percent interest in a cash
transaction.
    Sintered Metal Components employs 106 people and produces sintered parts
primarily for the automotive industry.  It makes shock absorber components for
Gabriel, Armstrong, and Cambro; sprockets for Volkswagen;  brake pedal bushes
and spacers for Toyota; trailer brake bushes for Henred Fruehauf, and diesel
engine adjustment levers for Atlantis Diesel Engines.
    The company, situated 35 minutes from Cape Town, achieved 1998 sales of
R13.2 million (Rand), or US$2.13 million.  It has net assets of R4.5 million,
or US$726,000.
    "This transaction fits with our strategy to supply the automotive industry
on a global basis," said Mr. Ghasemi.  "Bringing Sintered Metal Components
under our control increases our presence in a market that soon will be
experiencing rapid growth," he added.
    Noting that the auto industry views South Africa as an emerging market,
with global manufacturers such as BMW, Mercedes, Volkswagen, and Ford having
made recent investments there, Mr. Ghasemi said he envisions GKN Sinter Metals
making a significant investment in the site in order to upgrade the facilities
and expand capacity.
    Jon Kerr, General Manager of Sintered Metal Components, and Ernest
Mitchell, the company's financial manager, will continue in their respective
roles at the South Africa facility, which will be known as GKN Sinter Metals-
Cape Town.  Mr. Kerr will report directly to Manfred Weber, Vice President,
Operations at GKN Sinter Metals, and a member of the company's Executive Team.
    GKN Sinter Metals, with over 30 locations spanning 10 countries and five
continents, has sales in excess of $600 million and is the world's largest
independent producer of powder metal parts.  The Company employs more than
5,500 people and produces over 4,000 different parts for the automotive, lawn
& garden, power tool, and home appliance markets.  GKN Sinter Metals is a
wholly owned subsidiary of U.K.-based GKN plc.