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Delco Remy International Announces Realignment Actions to Reduce Operating Costs

27 July 2000

Delco Remy International Announces Realignment Actions to Reduce Operating Costs

    ANDERSON, Ind. - Delco Remy International, Inc., announced today that it is 
completing a realignment of its global manufacturing facilities.  These actions 
will affect units in the United States, Canada, and the United Kingdom.

    As a result, the Company will record a one-time pretax charge of
approximately $35 million ($22 million after tax or $.84 per share) in the
fourth quarter. The future after tax cash outlay will be approximately
$10 million over the next two years.  The main component of the charge will be
voluntary and involuntary employee separation programs related to the
rationalization of manufacturing operations.

    The Company expects that these actions will result in a reduction in
operating costs of $20 million annually or $.48 per share.  These benefits
will begin to be realized in fiscal year 2001 and be fully realized in fiscal
year 2002.

    Delco Remy International, Inc., headquartered in Anderson, Indiana (USA),
became a public company in 1997. The Company designs, manufactures,
remanufactures and distributes electrical, powertrain/drivetrain and related
components and provides core exchange services for automobiles and light
trucks, medium- and heavy-duty trucks and other heavy-duty 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.