---

GKN Sinter Metals Purchases Privately Owned Michigan Sintered Metals, Inc.

12 July 1999

GKN Sinter Metals Purchases Privately Owned Michigan Sintered Metals, Inc.

      Latest Acquisition Adds Concentration of High-Stress Applications
                             To Product Portfolio

    AUBURN HILLS, Mich., July 12 -- GKN Sinter Metals has
purchased privately owned Michigan Sintered Metals, Inc., based in Owosso,
Michigan.
    The announcement was made today by Seifi Ghasemi, President & Chief
Executive Officer of GKN Sinter Metals.
    While financial terms of the transaction were not disclosed, the Company
said that Michigan Sintered Metals generated fiscal year 1998 sales of
$21.9 million, and had net assets of $5 million.
    Michigan Sintered Metals is a producer of powdered metal structural
components for high-stress applications.  In addition to its Owosso facility,
it operates two divisions in the heart of Pennsylvania's powder metals region
-- Metafusion, Inc., in Kersey, PA, and Sinterphase, in Johnsonburg, PA.  It
employs approximately 60 people in Michigan and 90 people in Pennsylvania.
    Key industries serviced by Michigan Sintered Metals are the automotive,
lawn & garden, and office equipment sectors.  It lists TRW, Herman Miller,
Steelcase, and Tuff Torque among its customers.
    According to Mr. Ghasemi, the addition of Michigan Sintered Metals gives
GKN Sinter Metals "a concentrated capability in the area of high-stress
applications."  Adding the Owosso, Michigan plant also offers us an
opportunity "to extend our level of service to the automotive industry."
    Michigan Sintered Metals, Inc.'s largest shareholders are Pat Gaffey and
Rajeev Ranadive.  Mr. Ranadive is staying with GKN Sinter Metals and will
continue to run the Michigan Sintered facilities.  Mr. Gaffey is retiring.
    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
producer of powder metal parts.  The Company employs close to 6,000 people and
produces over 4,000 different parts for the automotive, lawn & garden, power
tool, and home & office product markets.  GKN Sinter Metals is a wholly owned
subsidiary of U.K.-based GKN plc, a global industrial company.