TROY, MI -- Intermet Corp. has reached agreements with its largest customers to amend certain purchase orders and contracts. The amendments are primarily related to the recovery of scrap-steel and other raw-material costs.

Intermet said it intends to file a motion this week with the bankruptcy court for authority to assume these agreements. If the motion is approved by the court, the company intends to withdraw the motion it filed with the court on November 17, for authority to reject certain executory customer supply contracts. Intermet informed certain customers in mid-November it was asking for court authority to reject contracts determined to be burdensome because terms did not allow sufficient recovery of raw-material costs, primarily scrap steel.

"We are pleased that agreements have been reached with these important customers, who represent nearly 80 percent of the company's North American business," said Gary Ruff, Intermet chairman and CEO. "It is a major step in the right direction as we continue with our restructuring process. We appreciate the support of our customers and we remain committed to helping them meet their needs with quality cast-metal components."

For more information about Intermet, visit:www.intermet.com.

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