INTERMET Announces Plans to Close Mexican Machining Plant And Downsize Pulaski, Tennessee, Die-Casting Plant

Company cites need to optimize machining capabilities

and concentrate on cost-competitive products



Apr 10, 2001, 01:00 ET from INTERMET Corporation

    TROY, Mich., April 10 /PRNewswire/ -- INTERMET Corporation (Nasdaq: INMT)
 today announced that in the company's continuing efforts to drive down costs
 and increase efficiency, it plans to close its Reynosa, Tamaulipas, Mexico,
 machining facility and substantially downsize a die-casting plant in Pulaski,
 Tennessee.
     The Reynosa Plant provides light-metal machining services for a number of
 Mexican customers as well as for INTERMET's casting operations.  The facility
 employs 32 people.  The Pulaski Plant currently employs 178 people who
 manufacture and machine aluminum and magnesium die castings.
     Preparations for shutting down the Reynosa facility have begun with a
 projected closing date in the second quarter of 2001.  According to Mike Ryan,
 INTERMET's Executive Vice President of Operations, "Our decision to close the
 plant in Reynosa was based on a strategy to reduce our fixed-cost structures
 and to remain competitive in a global market.  We will work with our customers
 to redirect work to our other North American machining facilities."
     INTERMET plans to begin downsizing the Pulaski facility immediately with
 significantly restructured operations scheduled to be completed by the end of
 the second quarter of this year.  "After reviewing the Pulaski Plant's product
 and customer mix, we concluded that it was in the company's best interest to
 concentrate on core products," said Ryan.  "We will outsource or eliminate
 products that do not fit within our aggressive strategy for future earnings
 growth.  After restructuring, Pulaski will be a more efficient and focused
 plant."
     Ryan continued: "For the year 2001, these actions will have no net effect
 on the company's financial performance.  However, we expect the efficiencies
 gained will have a positive impact on the long-term profitability of
 INTERMET."
     Ryan also said that while these decisions are always difficult, "the need
 to remain competitive in a very demanding and rapidly evolving industry
 requires us to take these measures."
     With headquarters in Troy, Michigan, INTERMET Corporation is a full-
 service supplier of powertrain, chassis/suspension and structural components
 to the worldwide automotive industry.  The company has more than 7,000
 employees at facilities located in North America and Europe.  More information
 about the company is available on the Internet at 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 2000 Annual Report for
 the year ended December 31, 2000.
 
 

SOURCE INTERMET Corporation
    TROY, Mich., April 10 /PRNewswire/ -- INTERMET Corporation (Nasdaq: INMT)
 today announced that in the company's continuing efforts to drive down costs
 and increase efficiency, it plans to close its Reynosa, Tamaulipas, Mexico,
 machining facility and substantially downsize a die-casting plant in Pulaski,
 Tennessee.
     The Reynosa Plant provides light-metal machining services for a number of
 Mexican customers as well as for INTERMET's casting operations.  The facility
 employs 32 people.  The Pulaski Plant currently employs 178 people who
 manufacture and machine aluminum and magnesium die castings.
     Preparations for shutting down the Reynosa facility have begun with a
 projected closing date in the second quarter of 2001.  According to Mike Ryan,
 INTERMET's Executive Vice President of Operations, "Our decision to close the
 plant in Reynosa was based on a strategy to reduce our fixed-cost structures
 and to remain competitive in a global market.  We will work with our customers
 to redirect work to our other North American machining facilities."
     INTERMET plans to begin downsizing the Pulaski facility immediately with
 significantly restructured operations scheduled to be completed by the end of
 the second quarter of this year.  "After reviewing the Pulaski Plant's product
 and customer mix, we concluded that it was in the company's best interest to
 concentrate on core products," said Ryan.  "We will outsource or eliminate
 products that do not fit within our aggressive strategy for future earnings
 growth.  After restructuring, Pulaski will be a more efficient and focused
 plant."
     Ryan continued: "For the year 2001, these actions will have no net effect
 on the company's financial performance.  However, we expect the efficiencies
 gained will have a positive impact on the long-term profitability of
 INTERMET."
     Ryan also said that while these decisions are always difficult, "the need
 to remain competitive in a very demanding and rapidly evolving industry
 requires us to take these measures."
     With headquarters in Troy, Michigan, INTERMET Corporation is a full-
 service supplier of powertrain, chassis/suspension and structural components
 to the worldwide automotive industry.  The company has more than 7,000
 employees at facilities located in North America and Europe.  More information
 about the company is available on the Internet at 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 2000 Annual Report for
 the year ended December 31, 2000.
 
 SOURCE  INTERMET Corporation