Released on Sunday, May 20, 2007

Nemak, Monterrey, Mexico, a producer of high-tech aluminum auto components, has entered into a definitive agreement to acquire Castech, Saltillo, Mexico, a company in the same field of business.

Castech was purchased from Grupo Industrial Saltillo, which acquired a 100% stake in the precision sand and semi-permanent mold metalcaster only late last year from Norsk Hydro, Oslo, Norway. The consideration amounts to $136 million, comprising $72 million in cash and $64 million in debt.

Nemak earlier this year purchased the European metalcasting operations of Norsk Hydro, along with the majority of the casting assets of Teksid Aluminum, Detroit, Mich. The company is the largest global producer of automotive engine cylinder heads and blocks.

“With this acquisition, we continue to advance in the execution of our strategy, which is aimed to the reinforcement of the competitive position of our businesses,” said Dionisio Garza, ALFA’s chairman of the board and CEO. “Nemak continues to expand its leadership in technology, competitive costs, R&D and new product development.”

Castech, formerly a 50/50 joint venture between Grupo Industrial Saltillo and Norsk Hydro, operates a state-of-the-art facility on the outskirts of Saltillo, where it manufactures aluminum engine blocks and cylinder heads for General Motors in North America and Asia/Pacific. Installed capacity is three million equivalent heads per year. In 2006, Castech reported revenues of $180 million.

“By integrating Castech to Nemak’s worldwide system, our company will be able to offer additional capacity from cost-competitive sites to our customers,” said Manuel Rivera, Nemak’s president and CEO.