INTERMET CORPORATION
301 Commerce Street
Suite 2901
Fort Worth, TX 76102
Tel: 817-348-9190
Fax: 866-833-3583  

News Release
For IMMEDIATE Release
Contact: Chris Waldmeir
P2R Associates for Intermet
248.348.2464
chris@p2rassociates.com

INTERMET CORPORATION ANNOUNCES NEW BUSINESS WINS
AND CONTINUES SUCCESSFUL EXECUTION OF STRATEGIC GROWTH PLAN

Company Secures $130 Million of Annualized New and Replacement Business

FT. WORTH, Texas - Feb. 26, 2008 - Intermet Corporation, one of the world's leading manufacturers of cast-metal automotive components, today announced it has landed $130 million of annualized new and replacement business during 2007. Revenue from these multi-year programs will total more than $537 million, spanning the Ferrous, Die Cast and PCPCT business groups.

"We're delighted with these new business wins and the growing trust of our OEM and Tier One customers," said Jeff Mihalic, president and CEO, Intermet Corporation. "This validates our strategic direction and our successful execution of lean manufacturing principles throughout the company. In addition, this new business gives us the opportunity to add to our already strong track record of on-time product launches, which generates even more sales momentum."

New Business Reflects Successful Execution of Strategic Plan

Over the last 24 months, Intermet has incorporated a number of strategic initiatives that have re-focused and re-energized the company. It is now on sound financial ground and moving quickly to grow its presence as the premier, most diversified manufacturer of cast-metal components for the automotive, commercial-vehicle and industrial markets.

"We have made great progress with the implementation of our key strategic initiatives in a very short period of time as is evident in our ability to capture new business," said Mihalic.

He added that customer feedback has been extremely positive, especially in regard to Intermet's improvements in operations and pricing. "This is great news for all of Intermet's stakeholders as it strengthens the foundation for our five-year growth plan," he said.

Successful results of Intermet's strategic initiatives include:

  • Formation of a world-class Advisory Board comprised of industry executives to help guide Intermet's continuing evolution
  • Reorganization of the company into three customer-focused, autonomous business units
  • Dramatic reduction of corporate overhead
  • Sale of the company's European operation to Sakthi Auto Components
  • Rebuilding of the corporation's product cost models
  • Capacity consolidation through the Pulaski facility closure
  • Implementation of Six Sigma Disciplines and the Intermet Production System
(IPS) based on lean manufacturing Lean manufacturing has proven to be the single biggest driver of Intermet's financial improvement. Labor productivity has improved by 14 percent and overall cycle times are projected to come down by an additional 20 percent this year. A full 100 percent of the company's workforce has been exposed to the Intermet Production System (IPS) and by the end of the year every employee will have participated in at least one lean event, according to Mihalic. Key lean metrics including safety, customer quality, equipment uptime, cycle time, productivity and delivery are tracked and prominently posted at every plant.

"These improvements have brought about a dramatic change in attitude across our company and there is no stopping this train," Mihalic said. "Our employees now realize that they control the operation -- it does not control us. Nobody in our company will ever get in trouble for making a change that doesn't deliver the expected benefits. In our minds, the only crime is complacency."

Mihalic added, "Every company likes to talk about how their employees are empowered. We prefer to have our customers determine that for themselves by touring our operations and hearing our employees describe our lean tools and see how they have improved our operations."

Continuing Initiatives Will Build Foundation for Success

Intermet has also embarked on a balanced assessment of the company's core capabilities, areas for growth, competition and industry capacity. The executive team is currently in the process of focusing the company's assets and capabilities where they best support growth areas and customer requirements.

"The company will continue to evaluate all aspects of the business and plan accordingly," Mihalic said. He added that future actions could include mergers, acquisitions and joint ventures.

"It is in the best interest of our company and our customers to take whatever steps we find necessary to continue building Intermet into a successful and preferred supplier," Mihalic said. "Given the current trends in the automotive industry and the economic climate in general, we believe it is only prudent to seek opportunities for intelligent consolidation of capacity."

About Intermet: Founded in 1846, Intermet Corporation is a leading manufacturer of cast-metal components for the automotive, commercial-vehicle and industrial markets. With approximately 2,000 employees, the company is organized into three distinct manufacturing groups: Die Cast, Ferrous and PCPC. More information is available on the Internet at www.intermet.com.