---

GKN Sinter Metals Acquires Borg-Warner Operation In Gallipolis, Ohio

4 October 1999

GKN Sinter Metals Acquires Borg-Warner Automotive Operation In Gallipolis, Ohio

Forged P/M Races for Transmissions & Torque Converters, Plus Supply Agreement
with BWA, Provide Strategic Additions to GKN's Automotive Product Portfolio

    AUBURN HILLS, Mich., Oct. 4 -- GKN Sinter Metals today
announced it had acquired the forged powdered metal operations of Borg-Warner
Automotive, Inc. , located in Gallipolis, Ohio.
    While financial terms of the transaction were not disclosed, GKN Sinter
Metals said that f.y. 1998 sales for BWA's Gallipolis facility were $40
million, and the net book value of the assets being acquired, at the time of
purchase, is $43 million.
    The Gallipolis plant is a supplier of forged powder metal races used in
vehicle transmissions and torque converters.  It employs about 400 people.  A
long-term supply agreement between GKN Sinter Metals and Borg-Warner
Automotive has been signed as part of the transaction.
    "Acquisition of BWA's Gallipolis operation enhances our forged P/M
capabilities, and provides a strategic addition to our automotive product
portfolio," said GKN Sinter Metals President & CEO Seifi Ghasemi, who noted it
was a little over a year ago that the Company acquired Borg-Warner
Automotive's Romulus, Michigan facility that produces powder forged connecting
rods.
    The BWA transaction, when combined with GKN Sinter Metals' acquisition of
Zenith Sintered Products which was announced one week ago, represent an
increase of about 20 percent in annualized sales for the Company.
    GKN Sinter Metals, with over 30 locations worldwide and business assets
spanning 13 countries and five continents, has sales in excess of $700 million
and is the world's largest producer of powder metal components.  The Company
employs more than 6,000 people and produces over 4,000 different parts for the
automotive, commercial vehicle, home appliance, lawn & garden, office
equipment, and power tool markets.  GKN Sinter Metals is a wholly owned
subsidiary of U.K.-based GKN plc, a global industrial company.