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Delco Remy Opens New Hungarian Facility to Serve the European Aftermarket

28 January 2000

Delco Remy International Opens New Hungarian Facility to Serve the European Aftermarket

    ANDERSON, Ind., Jan. 27 -- Delco Remy UK Ltd., a subsidiary
of Delco Remy International, Inc. , announces the opening of a new
remanufacturing factory in Hungary, built specifically to service the demands
of the European Aftermarket.  Delco Remy UK Ltd. is the UK's leading starter
and alternator manufacturer.
    Managing Director of European Operations, Patrick Mobouck, stated, "The
opening of this new facility in Hungary represents the second step in Delco
Remy International's plans to become the brand leader in the European rotating
electrics market.  When you think that Delco Remy International came into
existence five years ago, the success that we have achieved in this short
amount of time has been phenomenal, particularly as we continue to invest and
expand."
    The state-of-the-art 56,000 sq. ft. factory is in Miskolc, Hungary's
second largest city.  Initially, the factory's capacity is targeted for the
European Aftermarket.  It has a planned capacity of 250,000 units per year --
both starters and alternators -- with further expansion planned as demand
increases.
    "We are new into the European Aftermarket -- only six months in the UK,
but because of our considerable expertise and capability as a company, we are
able to look at remanufacturing on a global basis.  This enables us to
maximize our full line of products, continually improve our availability,
ensure the highest technical quality, maintain the widest core availability,
and offer a support package which is the envy of our competitors," said Eric
De Poortere, vice president Aftermarket, Sales & Marketing, Delco Remy Europe.
    Delco Remy has purchased a total of 452,000 sq. ft. of land for future
expansion.  The factory area will comprise more than 40,000 sq. ft. while the
offices, meeting rooms and employees' service area utilizes 14,000 sq. ft.
The total investment in this new facility is approximately $5 million in U.S.
dollars.
    The planned employment level will be 160.  Currently there are 88
employees, many of whom began training for this new factory in April 1999.
Said Tim Rahill, Delco Remy's UK country manager, "The team members in Miskolc
have been on an aggressive training program.  We are pleased with their
progress.  It confirms our decision to locate in this region.  Not only are
there economic initiatives but the skill of the workforce and the availability
of high tech engineering support makes this an ideal region for growth."
    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.