INTERMET Receives Court Approval of Financing Commitment and Disclosure Statement

Confirmation hearing set for September 26, 2005 


TROY, Mich., Aug. 12  /PRNewswire-FirstCall/ -- INTERMET Corporation (INMTQ:PK), a diversified manufacturer of cast-metal components, today announced that the United States Bankruptcy Court for the Eastern District of Michigan has approved the Company's motion to enter into an equity financing Commitment Letter under which R2 Investments, LDC, and Stanfield Capital Partners LLC have agreed to underwrite a $75 million equity investment in INTERMET in connection with INTERMET's proposed Plan of Reorganization.

The court also approved the Company's amended Disclosure Statement.  In addition, the court approved the Company's proposed solicitation and balloting process.  INTERMET will distribute the Disclosure Statement and balloting materials to all creditors in order to solicit their votes in support of the Plan.

The confirmation hearing with respect to the Plan of Reorganization is scheduled to begin on September 26, 2005.

"We are pleased with the court's approval, which means that INTERMET is moving closer to exiting bankruptcy," said Gary F. Ruff, Chairman and CEO. "We look forward to emerging from Chapter 11 with a capital structure and strategy designed to strengthen our leadership position in the industry."

About INTERMET: With headquarters in Troy, Michigan, INTERMET Corporation is a manufacturer of cast-metal components for the automotive, commercial- vehicle and industrial industries.  The company has approximately 5,300 employees worldwide.  More information is available on the Internet at http://www.intermet.com/ .  Specific information relating to the Chapter 11 cases filed by INTERMET and certain of its domestic subsidiaries, including a copy of the proposed Plan of Reorganization, can be found on the Internet at http://www.administar.net/intermet .

Cautionary Statement: This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are not guarantees of future performance but instead involve various risks and uncertainties.  INTERMET's actual results may differ materially from those suggested by its forward-looking statements due to factors such as: the economic cost, management distraction and lost business opportunities associated with bankruptcy proceedings; INTERMET's continued access to its DIP financing; the high cost of scrap steel and the possibility that scrap steel costs will remain at high levels or continue to increase, which would have further negative effects on INTERMET's profitability, cash flow, liquidity and ability to borrow; fluctuations in the cost of other raw materials, including the cost of energy, aluminum, zinc, magnesium and alloys, and INTERMET's ability, if any, to pass those costs on to its customers; pricing practices of INTERMET's customers, including changes in their payment terms resulting from the discontinuation of early payment programs and continuing demands for price concessions as a condition to retaining current business or obtaining new business, and the negative effect that price concessions have on profit margins; changes in procurement practices and policies of INTERMET's customers for automotive components, including the risk of the loss of major customers or the loss of current or prospective vehicle programs as a result of INTERMET's financial condition and prospects (or otherwise); possible inability to close unprofitable plants or to transfer work from one plant to another because of the related costs or customer requirements; general economic conditions, including any downturn in the markets in which INTERMET operates; fluctuations in automobile and light and heavy truck production, which directly affect demand for INTERMET's products; deterioration in the market share of any of INTERMET's major customers; fluctuations in foreign currency exchange rates; work stoppages or other labor disputes that could disrupt production at INTERMET's facilities or those of its customers; continuing changes in environmental regulations to which INTERMET is subject, and the costs INTERMET will incur in meeting more stringent regulations; factors or presently unknown circumstances that may result in impairment of INTERMET's assets, including further write-downs of its goodwill; and other risks as detailed from time to time in INTERMET's periodic SEC reports. 

DATASOURCE: INTERMET Corporation



CONTACT:  Mike Kelly of INTERMET Corporation, [phone]



Web site:  http://www.intermet.com/ 

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