Romulus, Mich., June 10, 1999 - Hayes Lemmerz International, Inc. (NYSE: HAZ), one of the leading suppliers of automotive and commercial highway wheels, brakes, suspension, structural and other light weight components to the global transportation industry, today announced that it has begun production of cast aluminum wheel-end and structural components for the Lincoln LS for Ford.

Lincoln LS

Foto: Ford

"This contract for aluminum suspension components is further evidence of the growing use of aluminum components in today's vehicles. Aluminum continues to be the durable and lightweight metal of choice for the automotive industry as it ventures into the next century," said Mish Jaksic, President of Hayes Lemmerz Suspension Components business unit. "The contract is the result of our innovative manufacturing processes and technology and further demonstrates how Hayes is one of the world's leaders in lightweight aluminum automotive products."

Ronald M. Pirtle, Delphi Harrison Thermal Systems president and Delphi Automotive Systems vice president, announced that this production of complete thermal systems supports DMP's production of the LD-100, a truck platform that has several different applications. Delphi will begin supplying complete systems in June 2000 for the LD-100, which has its final assembly in Lublin, 160 kilometers southeast of Warsaw. Annual volume is forecasted to reach 120,000 vehicles.

"Daewoo is a very important worldwide customer, and with its ever-increasing presence in the global marketplace, it's one which offers significant growth opportunities," Pirtle said. Delphi and Daewoo already have a strong thermal management-based relationship through the two company's Korean joint venture -- Daewoo Automotive Components.

Final systems assembly will occur at Delphi Harrison Thermal's Ostrow, Poland facility. The majority of the components that comprise the powertrain cooling and climate control systems, such as the radiator, condenser, evaporator, and heater core, will come from the division's various European manufacturing sites, including Ostrow. With this new program, Delphi Harrison Thermal Systems will be introducing heating, ventilating and air conditioning (HVAC) manufacturing to the Ostrow plant. Since Delphi purchased the operation in 1996, the 900-employee plant has been manufacturing primarily heat exchangers for European customers, including Daewoo's Poland operations.

The Commercial Vehicle Cab Systems Group, a part of Dana since the acquisition of Echlin Inc. last July, manufactures mirrors and mirror systems, windshield wiper systems, and HVAC controls for medium- and heavy-duty trucks. Its products are marketed primarily under the Moto Mirror(R) and Sprague(R) brand names. The group had sales of $91 million in 1998 and employs approximately 550 people at facilities in Canby, Ore.; Canton, N.C.; and Michigan City, Ind.

In April, Dana unveiled its Five-Point Plan, which is a tactical link to the company's overall strategic plan. The Five-Point Plan provides elements for continued growth and increased profitability over the next 12 to 18 months.

The plan includes the following five tactics:
* Grow while focusing on returns and maintaining financial discipline;
* Seek strategic, bolt-on acquisitions at reasonable valuations;
* Divest non-strategic and non-performing operations;
* Repurchase stock as the company generates cash; and
* Complete integration efforts and realize synergy savings.

Dana has retained the investment-banking firm of Donaldson, Lufkin & Jenrette, Inc., to assist in the transaction.