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Intermet to Close Ironton Iron Foundry

7 December 1999

Intermet to Close Ironton Iron Foundry

                            Cites Loss of Business

    TROY, Mich., Dec. 7 -- Intermet Corporation
today announced plans to permanently close its Ironton Iron, Inc., foundry in
Ironton, Ohio.
    The foundry is expected to lose most of its remaining business in early
2000 as customers move work to other suppliers.  The Ironton Iron facility has
had consistent and enduring financial losses.  Given the expected steep
decline in business, company officials expected losses for the foreseeable
future.  In addition, the foundry is one of Intermet's oldest facilities and
the cost of modernization would have further impacted already weak operating
results.
    Intermet purchased Ironton Iron, Inc., in 1988.  Prior to that the
facility operated for about two years under employee ownership.
    The plant manufactures cast ductile iron parts for automotive customers,
principally for use in domestically produced light vehicles.  It has an annual
casting capacity of 98,000 tons, but is currently operating at about 50
percent capacity.  The foundry employs approximately 600 people, including
hourly and salaried staff.  Hourly employees at the plant are represented by
the United Steelworkers of America Local 3664.
    Intermet anticipates that the foundry will be closed in the first quarter
of 2000; however, the actual date has not been determined.  Company
representatives are meeting with the union and other affected employees to
discuss this action and its effects on the workers.
    "The decision to close the Ironton Iron foundry was an extremely difficult
one for us," said James F. Mason, group vice president for Intermet.
"Intermet has been working for years to make this plant efficient.  We
invested over $100 million in the plant and lost every penny of it, and more.
We feel that all avenues were explored, but unfortunately, the loss of
business dictated the eventual outcome of our efforts."
    Intermet expects a pretax charge of $16-18 million in the fourth quarter
of 1999 as result of the shutdown.
    With headquarters in Troy, Michigan, Intermet Corporation and its
subsidiaries are full-service suppliers to the automotive and industrial
equipment industries worldwide, providing precision iron and aluminum cast and
finished components.  Intermet also manufactures cranes and specialty service
vehicles.  The company has more than 7,000 employees at 19 locations in North
America and Europe.  More information about the company is available on the
Internet at http://www.intermet.com .
    This news release may include forecasts and forward-looking statements
about Intermet, its industry and the markets in which it operates.  Forward-
looking statements and the achievement of any forecasts or projections are
subject to risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or denied.  Such risks and
uncertainties are fully detailed as a preface to the Management's Discussion
and Analysis of Financial Condition in the Company's 1998 Annual Report for
the year ended December 31, 1998.