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INTERMET Third-Quarter Earnings to be Below Expectations

1 September 2000

INTERMET Third-Quarter Earnings to be Below Expectations

    TROY, Mich., Aug. 31 INTERMET Corporation
today reported that due to serious production problems in two of its plants,
third-quarter earnings are expected to be reduced by approximately $0.16 to
$0.18 per share.  The two plants having the production problems are Alexander
City Foundry (Alexander City, Alabama), a lost-foam aluminum plant, and
Columbus Foundry (Columbus, Georgia) a ductile-iron casting operation.
    Chairman and CEO John Doddridge said, "Alexander City has run into
technical difficulties launching two new complex products.  Columbus Foundry
has had extraordinarily high costs relating to the launch of a ductile-iron
casting as well as serious equipment process problems."
   Doddridge continued: "Our foundries must run at a high rate of production
to be efficient, and both of these locations, due to their difficulties, are
experiencing extremely low production yields along with substantial costs to
produce sufficient parts to meet customer needs.  August has been a disastrous
production month for both of these operations and while we have dedicated our
technical and manufacturing resources to these issues, it has become clear
that these costs will continue through September."
    Doddridge went on to say that on the positive side, INTERMET expects to
close on the sale of certain non-core assets which will provide a one-time
gain more than offsetting the above mentioned shortfall.  "The closing will
probably occur in late September making it a third-quarter event; however,
there is a slight risk it could fall into early October.
    "Additionally, on the good news side, it is planned that our New River
Foundry will begin operating again on Tuesday, September 5, 2000," said
Doddridge.