Hayes Lemmerz Announces North American Cuts

Automotive component supplier Hayes Lemmerz International, Inc. has announced further plans by which it intends to maximise long-term value for its shareholders through the ‘streamlining’ of its North American operations. Specifically, the Company announced:

— That it has entered into a definitive agreement for the sale of its suspension facilities located in Bristol, Indiana and Montague, Michigan. The completion of the sale is subject to customary closing conditions, including the approval of the Company’s lenders. The Company expects to complete the sale within 30 days.

— The relocation of the Company’s Automotive Components Group headquarters and technical centre to the Hayes Lemmerz’ World Headquarters in Northville, Michigan, resulting in the closure of its Ferndale, Michigan Technical Centre.

Curtis J. Clawson, President, CEO and Chairman of the Board said, “This step, combined with the restructuring moves in 2006, further shows Hayes Lemmerz’ commitment to being in the right core markets and focusing on the right products with the right customers. We remain confident about the Company’s future.” He added that “Moving our Automotive Components Group to our Northville World Headquarters will improve information sharing across groups and lower our fixed costs.”