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Delco Remy International Acquires Controlling Interest in Remy Korea

8 July 1999

Delco Remy International Acquires Controlling Interest in Remy Korea

    ANDERSON, Ind., July 7 -- Delco Remy International, Inc.,
announced today that it has acquired a controlling interest of
81 percent in its subsidiary, Remy Korea Limited (RKL).  The increased
investment was made to expand Delco Remy's interests and opportunities in the
Asian market.  In the original agreement, RKL was a 50-50 joint venture
between Delco Remy, a group of Korean investors and RKL management.
    Delco Remy President Thomas J. Snyder stated, "The Asian market has
recovered quickly and represents an important growth opportunity for the
company."
    RKL manufactures automotive starters and heavy-duty starters and
alternators for Korean customers such as Daewoo, Asia Motors, Kia, Hyundai,
and others as well as exporting product primarily to the U.S. OEM market.
    Delco Remy International, Inc., headquartered in Anderson, Indiana (USA),
became a public company with an initial public offering of stock in December
1997.  The company designs, manufactures, remanufactures and distributes
electrical, powertrain/drivetrain and related components for automobiles and
light trucks, medium- and heavy-duty trucks and other heavy-duty, off-road
vehicles.  Products include starter motors, alternators, engines,
transmissions, torque converters, fuel systems, and traction control systems.
The Company serves the aftermarket and original equipment manufacturer market
principally in North America, as well as in Europe, Latin America and Asia
Pacific.
    Statements in this press announcement, which are not historical facts, are
forward-looking statements that involve certain risks and uncertainties
including, but not limited to risks associated with the uncertainty of future
financial results, acquisition, additional financing requirements, development
of new products and services, the effect of competitive products or pricing,
the effect of economic conditions and other uncertainties detailed in the
Company's filings with the Securities and Exchange Commission.