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ARVIN CELEBRATES 75TH ANNIVERSARY AT ANNUAL MEETING

 COLUMBUS, Ind., April 14 /PRNewswire/ -- Arvin Industries, Inc. (NYSE: ARV), Chairman of the Board James K. Baker, chairing the Company's 56th annual shareholders' meeting today said, "Founder and President Q.G. Noblitt indicated in our first annual report that 'It is with considerable optimism that we look forward to the future,' and we can echo our founder's words here today as we celebrate our 75th anniversary.
 "Our long-term strategy is to continue to build on Arvin's automotive strengths. It is our goal to use the quality reputation we have developed to better service and penetrate Arvin's customer base. Arvin has improved its position within the industry, and we believe our shareholders will benefit from the results of our strategy," Baker said.
 Byron Pond, President and Chief Executive Officer, in his presentation to shareholders described Arvin's profile in a slightly different format.
 "Arvin's annualized sales, including our share in equity of unconsolidated subs and affiliates, were $2.1 billion. The intent is to demonstrate that Arvin is very focused on its core product lines which represent 75 percent of sales," Pond said.
 "Exhaust systems continue to grow in complexity due to emission regulations, engine mounting preference, and performance standards. Emission regulations still have a significant impact on exhaust system designs. The latest revision in emission regulations will be phased in through the year 2003. As a result, the Original Equipment exhaust market will grow at a five-year compounded growth rate of approximately 8.6 percent to a market size of $4.2 billion," Pond explained.
 "Our ride control product line has a similar story. The consumer's demand for longer life, increasing use of struts, and the future market for electronic ride control products offers a promising return on investment for our shareholders. The ride control O.E. market segment has the greatest near term opportunity. Our $1.6 billion focus market has a projected 7.3 percent growth rate," Pond said.
 "Looking at the combined product lines, and add to that the aftermarket opportunities, Arvin's market is significant at $8.4 billion.
 "When you apply the total growth rates of 6.1 percent, we see a 1998 market in excess of $11.2 billion. This makes Arvin's future very bright. We have growth in markets we know and understand, we are concentrating on our expertise, and we are creating market leadership positions. We think our strategic plans are right for Arvin's future," Pond concluded.
 Also addressing the shareholders were Executive Vice President and President of North American Automotive V. William Hunt; Managing Director of Timax Exhaust Systems James W. Thomas; President of Arvin Ride Control Products E. Leon Viars; Vice President and General Manager of AVM Bruce C. Walters; and retired President of North American Automotive Joe T. Atkins.
 V. William Hunt described some of the accomplishments of the unique processing and learning system for all Arvin employees called the Arvin Total Quality Production System (ATQPS). Hunt also unveiled the extended version of ATQPS to the administrative process, called the Arvin Total Quality Administration System (ATQAS).
 "ATQPS, in our first full year of implementation, has been received with open arms by Arvin employees. Employee involvement teams made over 7,500 process improvements and waste reduction suggestions in 1993. Other improvements have been obtained in cost of quality (20%); inventories reduced (70%); customer rejections reduced (49%); and lead time improvements (96%). An astounding 91,160 hours of training have been completed to date," Hunt said.
 In announcing ATQAS Hunt said, "ATQAS is a systematic approach to identifying and eliminating waste and non-value added activities in our administrative processes. ATQAS is built on the same supporting strategies as ATQPS. After completing just three sessions of ATQAS, we are convinced this program has great potential."
 Jim Thomas, Managing Director of Timax Exhaust Systems told the audience that in the last year, Arvin has moved from being the number three European manufacturer of replacement exhaust systems, to sharing the number one market share position.
 "While the three major market participants now account for 60 percent of the market, we expect the market leaders to account for 80 percent of the sales before the end of the decade," Thomas said.
 "To prepare for market leadership, our first priority is to develop and offer our customers the widest product range available. To this end we will add over 2,500 new vehicle applications to our product lines over the next three years. Our second priority will be to offer our customers a single application catalog adapted to 12 or more languages. Thirdly, we will increase operating efficiency by reducing manufacturing complexity at each plant. Finally, we will produce a product that is built to the same customer design specifications regardless of where the product is produced.
 "As a result of these four priorities, we expect operating profits to improve over 60 percent by 1996, benefiting the shareholder," Thomas concluded.
 Leon Viars, President Arvin Ride Control Products told shareholders that the recent purchase of 49 percent of Way Assauto has doubled Arvin's original equipment market share in Europe.
 "Way Assauto now supplies over 70 percent of Fiat's original equipment needs for shock absorbers and MacPherson struts. The Fiat/Way Assauto relationship is strong and the two companies work closely to produce high quality, low cost products that can be delivered to Fiat assembly lines on a just-in-time basis," Viars said.
 "We are very proud to have Way Assauto as part of the Arvin worldwide family. It is a natural fit with our European original equipment ride control strategy," Viars concluded.
 Bruce C. Walters, Vice President and General Manager of AVM, explained the gas-spring world market to assembled shareholders.
 "There are six players in the gas-spring world market. AVM is the leading supplier to the U.S. automotive aftermarket. We have approximately 25 percent of the original equipment automotive business in the U.S. and the opportunities to increase our sales share, profits and penetration in the world market is exceptional," Walters said.
 Richard A. Smith, Vice President-Finance and Chief Financial Officer, reviewed Arvin's 1993 performance, financial activities surrounding non-consolidated operations and updated the non-financial measures Arvin uses to track performance against goals.
 "Arvin's performance in 1993 included increased sales and increased earnings per share from continuous operations. This was accomplished with the tempered effect of weaker European currencies, a significant decline in vehicle production in Europe and demand which fell short of expectations in the replacement segment," Smith explained.
 "If Arvin included 100 percent of the non-consolidated operations, our operating profit would be $30 million greater and our sales would grow by nearly $400 million," Smith said.
 "We believe that above average performance on non-financial measures can produce above-average financial returns for our company. Sales per employee, penetration by major platform in '94-'95 model year, and Arvin sales per vehicle all show continued improvements. The value we have on each North American or European vehicle is up 30 percent in the last two years. None of these non-financial measures are where we want them to be. They are trending in the right direction, and we expect to be able to report more progress next year to our shareholders," Smith concluded.
 Special recognition was given to retiring Arvin board member Tom Holmes and retiring President of North American Automotive Joe Atkins. Mr. Holmes is the former Chairman and CEO of Ingersoll Rand and joined the Arvin Board in 1990. Mr. Holmes' term expired and in accordance to Arvin by-laws could not seek re-election to the board. Mr. Atkins retired April 1st and spent 46 years with Arvin, serving under every president from founder Q.G. Noblitt to Byron Pond.
 In the business agenda of the meeting, shareholders voted to ratify the appointment of Price Waterhouse as Arvin's independent certified public accountants for the current year and elected five directors to serve three-year terms.
 Elected to the Board of Directors for three-year terms were: James K. Baker, Chairman of the Board of Directors of Arvin; Robert E. Fowler, Jr., President and Chief Operating Officer of The Vigoro Corporation; Ivan W. Gorr, Chairman of the Board and Chief Executive Officer of Cooper Tire & Rubber Company; Richard W. Hanselman, former Chairman and Chief Executive Officer of Genesco, Inc.; and Don J. Kacek, Chairman, President and Chief Executive Officer of Advanced Automation Technologies, Inc.
 Continuing directors are: Joseph P. Allen, President and Chief Executive Officer of Space Industries International, Inc.; Steven C. Beering, President of Purdue University; Joseph P. Flannery, Chairman, President and Chief Executive Officer of Uniroyal Holdings, Inc.; William D. George, Jr., President and Chief Executive Officer of S.C. Johnson & Son, Inc.; V. William Hunt, Executive Vice President of Arvin; Frederick R. Meyer, Chairman and President of Aladdin Industries, Inc.; Byron O. Pond, President and Chief Executive Officer of Arvin; Richard A. Smith, Vice President-Finance of Arvin; and Arthur R. Velasquez, President and Chief Executive Officer of Azteca Foods, Inc.
 Arvin Industries, Inc., is a FORTUNE 250 company supplying automotive parts and related products and services throughout the world. During 1994 Arvin will be celebrating its 75th anniversary.
 -0- 4/14/94
 /CONTACT: John W. Brown of Arvin Industries, Inc., 812-379-3389/
 (ARV)


CO: Arvin Industries, Inc. ST: Indiana IN: AUT SU: PER

BM-BR -- CL027 -- 7631 04/14/94 17:50 EDT
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Date:Apr 14, 1994
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