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ArvinMeritor Announces New Monthly Commodity Surcharge

Company Taking Necessary Actions to Offset Surging Steel and Energy Prices

TROY, Mich., May 13 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc. (NYSE: ARM) today reported that it plans to initiate a new commodity surcharge starting June 1, 2008.

"As a result of the sudden and extraordinary surges in the price of steel, energy and other commodities, we are implementing a monthly review and adjustment process on all products," said Chip McClure, chairman, CEO and president of ArvinMeritor. "We have a portfolio of complex products that require varying levels of commodities. We plan to adjust the surcharge as appropriate for each product line."

In ArvinMeritor's second-quarter earnings report issued on April 29, 2008, the company stated that the unprecedented volatility in the commodity markets -- including a global shortage of scrap steel, a rapid escalation in the price of critical raw materials such as iron ore, coking coal and metal alloys, and higher fuel and energy costs, would require it to take recovery actions to mitigate a significant impact to the company's financial results.

McClure continued, "We remain diligent in the performance improvement actions and cost reduction initiatives we are driving throughout our worldwide operations, however, these will not be enough to offset the level of cost increases we are experiencing. Our global team has worked hard to improve the company's financial results, and we have the responsibility to take the necessary actions to protect our bottom line.

The Commercial Vehicle Systems and Light Vehicle Systems business groups have conducted an extensive analysis to determine the magnitude of this situation and its potential effect on the business," said McClure. "Results of that analysis clearly indicate that immediate actions are necessary."

The company has begun discussions with its customers prior to implementing the surcharge.

About ArvinMeritor

ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. Headquartered in Troy, Mich., ArvinMeritor employs approximately 19,000 people in 24 countries. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: http://www.arvinmeritor.com/.

Forward-Looking Statements

This press release contains statements relating to future results of the company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "estimate," "should," "are likely to be," "will" and similar expressions. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions; the demand for commercial, specialty and light vehicles for which the company supplies products; availability and sharply rising cost of raw materials, including steel and oil; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of the company's suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; success and timing of potential divestitures; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company's debt; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company's debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed herein and from time to time in other filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO )

SOURCE ArvinMeritor, Inc.

CONTACT: Media, Krista McClure, +1-248-435-7115,
krista.mcclure@arvinmeritor.com, or Investors, Terry Huch, +1-248-435-9426,
terry.huch@arvinmeritor.com, both of ArvinMeritor, Inc.
Web site: http://www.arvinmeritor.com
(ARM)

 
 
 
 
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