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Delco Remy and UAW Announce Tentative Contract

25 June 2000

    ANDERSON, Ind. - Delco Remy and United Auto Workers Local 662 jointly 
announced a tentative agreement with provisions for a two-year labor contract 
extension to the year 2003.  While specific details of the tentative pact are 
not available until formal ratification by the members on next Tuesday, general 
highlights include:

    -- A secured job level of 550 employees and new competitive
       employment opportunities in Anderson

    -- Employees affected by the restructuring will have preferential
       hiring rights at new DRA competitive Anderson
       facilities and will receive an employment transition compensation
       and benefit package.

    -- An agreement for a new competitive facility will position DRA to
       aggressively pursue new work

    Delco Remy International, Inc., headquartered in Anderson,
Indiana (USA), became a public company with an initial stock offering in
1997.  The company designs, manufactures, remanufactures and distributes
electrical, powertrain/drivetrain and related components and core exchange
service for automobiles and light trucks, medium -- and heavy-duty trucks
and other heavy-duty off-road and industrial applications.  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 Europe, Latin America and Asia Pacific.  More
information is available on the company web site at http://www.delcoremy.com .