Arvin Offers 3,000,000 Income Equity Units

30 July 1999

Arvin Offers 3,000,000 Income Equity Units

    COLUMBUS, Ind.--July 28, 1999--Arvin Industries, Inc. , announced today that it is offering 3,000,000 Arvin Income Equity Units consisting of a share purchase contract issued by Arvin and a debenture also issued by Arvin. The share purchase contract will include the right to receive contract adjustment payments from Arvin and will obligate the holder to purchase from Arvin, in 2002, a number of Arvin common shares for a set price of $50. The number of common shares to be received on the settlement date will be based on the average price of such shares prior to the settlement date.
    Each debenture will have a principal amount of $50, and the holder will pledge the debenture to secure the holder's obligation to purchase the common shares under the related share purchase contract. Contract payments will be made on the share purchase contracts at the same time interest is paid on the debentures.
    The proceeds from the offering will be used to repay short-term debt incurred in the February 1999, acquisition of Purolator Products Company and for general corporate purposes. Lehman Brothers and Merrill Lynch are joint book running managers of the offering of the Arvin Income Equity Units with PaineWebber and Prudential Securities as co-managers.
    For more information about the Arvin Income Equity Units, a preliminary prospectus may be obtained from:

    Arlene Salmonson
    Lehman Brothers, Inc.
    Three World Financial Center
    New York, NY 10285
    212/526-6140

    Arvin Industries, Inc., is a global manufacturer of automotive components with over 60 manufacturing facilities and eight technical centers located in 21 countries. Arvin is a leading manufacturer of automotive exhaust systems, ride control products, air, oil and fuel filters and gas-charged lift supports. Arvin's replacement products are sold under various trademarks including Arvin, Maremont, Timax, ANSA and ROSI exhaust systems, Gabriel shock absorbers, Purolator filters, and StrongArm gas-charged lift supports.
    For more information on Arvin Industries via the Internet, visit our Corporate Home Page at http://www.arvin.com or our Corporate News on the Net site at http://www.businesswire.com/cnn/arv.htm. For information via fax, please call our News On Demand service at 888-622-1161.