Linamar Corporation

Linamar Corporation

April 30, 2007 10:36 ET

Linamar Announces Purchase Proposal for Ford's Automotive Component Holdings Converca Operations

GUELPH, ONTARIO--(CCNMatthews - April 30, 2007) - Linamar (TSX:LNR) and Ford Motor Company today announced a non-binding proposal setting forth the preliminary understanding and status of discussions regarding the purchase by Linamar of Automotive Components Holdings' (ACH) Power Transfer Unit (PTU) business at the Converca I Plant in Nuevo Laredo, Mexico.

Linamar is interested in the Converca I Plant and product engineering group for its PTU capability, which would further enhance Linamar's product offering in North America. The PTU is a critical driveline system which provides all-wheel-drive control to vehicles.

"The acquisition of ACH's PTU manufacturing and product engineering capabilities, with leading-edge PTU technology, would significantly enhance the depth of our Transmission/Driveline Group," said Linda Hasenfratz, Linamar's CEO. "The addition of the PTU business to our existing scope of capabilities widens Linamar's range and enhances our offering of fully engineered systems, built on our component and module expertise. It is a natural extension of our strengths which we look forward to expanding, particularly in light of the growth potential of the PTU market."

The proposed transaction is subject to, among other things, due diligence, negotiation of remaining business terms and the negotiation and approval of mutually satisfactory agreements.

Linamar Corporation (TSX:LNR) is a diversified global manufacturing company of highly engineered products. The company's Powertrain and Driveline focused divisions are world leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle markets. The company's Industrial division is a world leader in the design and production of innovative mobile industrial products, notably its class-leading aerial work platforms. With close to 11,000 employees in 36 manufacturing locations, 5 R&D centers and 9 sales offices in Canada, the US, Mexico, Germany, Hungary, China, Korea and Japan Linamar generated sales of close to $2.3 Billion in 2006. For more information about Linamar Corporation and its industry leading products and services, visit

Certain information regarding Linamar set forth in this document, including management's assessment of the Company's future plans and operations may constitute forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results may differ materially from these anticipated in the forward-looking statements due to factors such as whether the proposed transaction will proceed based on substantially the proposed terms or at all, customer demand and timing of buying decisions, product mix, competitive products and pricing pressure. In addition, uncertainties and difficulties in domestic and foreign financial markets and economies could adversely affect demand from customers. These factors, as well as general economic and political conditions, may in turn have a material adverse effect on the Company's financial results. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

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