Asahi Tec Announces Actions to Reduce Costs, Take Advantage of Global Markets and Enhance Metaldyne's Integration

Asahi Tec Announces Actions to Reduce Costs, Take Advantage of Global Markets and Enhance Metaldyne's Integration

March 27, 2007

    PLYMOUTH, Mich., March 27 /Xinhua-PRNewswire/ -- Asahi
Tec Corp. today announced a number of initiatives to
expedite the integration of its Metaldyne subsidiary,
consolidate the corporate management structure and reduce
operating costs. The company expects these actions, along
with the recent announcement of plant closings and
executive retirements, to result in a net savings of more
than $10 million in fiscal 2007. 

    The company will continue to focus on balancing assets
with the changing global market opportunities and the
company's expanding Asian businesses. This consolidation of
corporate functions comes just 10 weeks after the merger was
completed in early January. Asahi Tec also completed a
successful equity issuance in early March whereby new
investors from Southeast Asia and Europe contributed more
than $70 million of new equity. This equity round was the
second part of a planned three-phase restructuring of the
Asahi Tec/Metaldyne capital structure which included the
initial merger transaction, the equity issuance and a
contemplated debt refinancing of the combined companies. 

    "Metaldyne and Asahi Tec came together to create a
new, better capitalized global company that delivers leading
edge products and processes to our customers, shareholder
value to our investors and opportunity to our
employees," said Tim Leuliette, Asahi Tec co-chairman
and co-CEO. "These actions will not only reduce our
costs, they will result in more efficient operations and
expanded capabilities that will allow us to take advantage
of the opportunities offered in this highly competitive
global market."

    Among these actions are: a new global organizational
structure, rationalizing some facilities, eliminating
redundancies and a plan to not replace more than 25
executives who will retire this fiscal year. These moves
were approved by the Asahi Tec board of directors.

    Under the new organizational structure the Finance,
Corporate Development, Legal, Human Resources, Information
Technology, Quality and Manufacturing Process and Corporate
Communications functions will be handled globally. 

    "This new global organizational structure
capitalizes on talent within our organization and ensures
collaboration and consistent decision making at the top
levels of Asahi Tec," said Shoichiro Irimajiri, Asahi
Tec co-chairman and co-CEO. "It will improve our
performance and help us respond more rapidly to the
constantly changing global business environment." 

    As announced in a separate release, Takao Yoshida,
currently CFO of Asahi Tec, will become executive vice
president and CFO of the combined companies and report to
Leuliette and Irimajiri. The following Finance executives
will assume global responsibility and report to Yoshida:
Terry Iwasaki, vice president and corporate controller;
Sandi Galac, vice president and treasurer; Hirohisa Yamada,
vice president, Financial Planning, and Brian Krass,
director, Internal Audit. Yves Gerard, European Finance
director, also will report to Yoshida.  An Investor
Relations executive also will be added to Yoshida's global
staff and will reside in Japan.

    Metaldyne's current CFO Jeff Stafeil, will continue as
an executive vice president of the Metaldyne subsidiary and
special advisor to Leuliette and Irimajiri. In addition, he
will assume a senior role at RHJ International (RHJI). 
RHJI is Asahi Tec's controlling shareholder with 37 percent
ownership of the total outstanding shares.

    "One of Jeff's key accomplishments was building a
strong financial team," said Leuliette. "We are
looking at refinancing opportunities to better align our
capitalization to our global business and reduce our annual
interest burden. This team will start the process of
recapitalizing our debt structure."

    In addition, the following executives will assume
global responsibility and report to Leuliette and
Irimajiri:

    -- Thomas Amato, executive vice president, Corporate
Development,
       and chief integration officer for Asahi Tec.  In
addition to
       leading global mergers and acquisitions activities
for Asahi
       Tec and all of its subsidiaries, he will be
responsible for
       driving the integration of Asahi Tec and Metaldyne. 

    -- Logan Robinson, executive vice president and general
counsel,
       government relations and secretary
    -- Marjorie Sorge, vice president, Corporate
Communications

    Tom Chambers, Metaldyne Powertrain & Chassis Group
president and COO, also reports to the co-chairmen and
co-CEOs. Chambers oversees the day-to-day operations at
Metaldyne's 38 global facilities. Metaldyne recently
restructured its North American Powertrain and Chassis
operations to better align the cost structure with market
opportunities and to meet the challenges of the evolving
North American market. The restructuring also will enhance
Metaldyne's global reach and competitiveness.  

    Under this new structure the Metaldyne North American
Chassis Group will be combined into one business unit
headed by Al Malizia, vice president and general manager,
Metaldyne North American Chassis Group, who reports to
Chambers. This action resulted in the retirement or
departure of several executives. 

    The Metaldyne European Chassis Group structure remains
the same and reports to Denis Bardou, vice president and
general manager.

    Irimajiri also will assume the role of acting president
and COO of the Asahi Tec Metal Forming Group and the Asahi
Tec Diversified Product Group following the retirement of
Akira Nakamura, current president and CEO of Asahi Tec. 

    Separately, Metaldyne also has taken actions to adjust
the excess capacity in its plants caused by production cuts
from its North American customers. The company recently said
it will close its Greenville, NC, plant and transfer
operations to its Greensboro, NC, plant, which has enough
open floor space to absorb the Greenville work. Greenville,
which manufactures chassis and suspension products, will
close by December.

    "We believe the future of Asahi Tec is unlimited
and that these actions further expand our opportunities to
grow globally," said Irimajiri. "We are now
structured to be a more agile and efficient company that
delivers the right products to our customers at the right
time with the highest quality." 
 
    About Asahi Tec

    Headquartered in Shizuoka, Japan, Asahi Tec (TSE: 5606)
primarily designs, manufactures and sells ductile iron cast
auto parts for truck and construction machinery OEMs,
aluminum casting parts for truck and passenger car OEMs and
aluminum wheels for automobile OEMs. Asahi Tec also designs,
manufactures and sells environmental systems, equipment and
development technologies used by local governments and
municipalities and electrical hardware and equipment used
by electricity generators.  

    Its subsidiary, Metaldyne, is a leading global designer
and supplier of metal-based components, assemblies and
modules for transportation related powertrain and chassis
applications including engine, transmission/transfer case,
wheel-end and suspension, axle and driveline, and noise and
vibration control products to the motor vehicle industry. It
is headquartered in Plymouth, Mich.

    Asahi Tec has annual revenues of approximately $2.7
billion and employs approximately 10,000 employees at 55
facilities in 15 countries. For more information, please
visit http://www.asahitec.co.jp and
http://www.metaldyne.com .

    Cautionary Information Regarding Forward-Looking
Statements 
 
    Statements in this press release, which are not
historical facts, are "forward-looking"
statements, as that term is defined by the federal
securities laws. Forward-looking statements include certain
anticipated, believed, planned, forecasted, expected,
targeted and estimated results along with Metaldyne's
outlook concerning future results, based on information
available at the time of this press release.  All
forward-looking statements are inherently uncertain as they
are based upon various expectations and assumptions
concerning future events,  and they are subject to numerous
known and unknown risks and uncertainties which could cause
actual events or results to differ materially from those
expressed or implied by the forward-looking statements. We
caution readers not to place undue reliance on the
forward-looking statements, and any such forward-looking
statements are qualified in their entirety by reference to
the following cautionary statements. 

    Important factors upon which the forward-looking
statements presented in this press release are premised
include:  (a) timely implementation and execution of merger
related plans including integration plans; (b) retention of
customers and critical employees; and (c) successful
management of any impact from declines in North American
automobile and light truck builds.  In addition, the
ability of Metaldyne to achieve the expected results with
Asahi Tec also will be affected by the effects of
competition (in particular the response to the merger in
the marketplace), the effects of general economic and other
factors beyond the control of Metaldyne, and other risks and
uncertainties that have been described from time to time in
Metaldyne's public filings with the Securities and Exchange
Commission, as further identified below.

    Risks and uncertainties that could cause actual results
to vary materially from those anticipated in the
forward-looking statements included in this press release
include general economic conditions in the markets in which
we operate and industry-based factors such as: declines in
North American automobile and light truck builds,
reductions in outsourcing by our automotive customers,
increases in our raw material and energy costs, labor costs
and strikes at our major direct and indirect customers and
at our facilities, dependence on significant automotive
customers, the level of competition in the automotive
supply industry and pricing pressures from our customers,
technological developments that could competitively
disadvantage us, and risks associated with conducting
business in foreign countries.  In addition, factors more
specific to us could cause actual results to vary
materially from those anticipated in the forward-looking
statements included in this report such as substantial
leverage, limitations imposed by our debt instruments, the
adequacy of our liquidity to meet our capital expenditures
and other cash requirements, our ability to identify
attractive and other strategic opportunities and to
successfully achieve the intended benefits of the merger
with Asahi Tec and integrate acquired businesses including
actions we have identified as providing cost-saving
opportunities. 
 
    We do not undertake any obligation to review or confirm
analysts' expectations or estimates or to publicly update or
revise any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated
events, or changes to future results over time.


    For more information, please contact:

     Marge Sorge
     Asahi Tec/Metaldyne
     Tel:   [phone]

     Jennifer Lee
     The Millerschin Group
     Tel:  [phone]