##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT of 1934


For the fiscal year ended January 31, 2005


Commission file number: 000-50303


Hayes Lemmerz International, Inc.


(Exact name of Registrant as Specified in its Charter)


|                                                                                          |  |                                         
|----------------------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                                  |  | 32-0072578                              
|(State or Other Jurisdiction of
    Incorporation or Organization)                        |  | (I.R.S. Employer
    Identification No.)
|                                                                                         
|15300 Centennial Drive,
     Northville, Michigan(Address of Principal Executive Offices) |  | 48167(Zip Code)                         

Registrants telephone number, including area code:


(734) 737-5000


Securities Registered Pursuant to Section 12(g) of the
Act:


Common Stock, par value $0.01 per share


Securities Registered Pursuant to Section 15(d) of the
Act:


10.5% Senior Notes Due 2010


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DOCUMENTS INCORPORATED BY REFERENCE


|                                                                                                                                                                                                                    |  |                |          | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | -------- | 
|Document Description                                                                                                                                                                                                |  | Form 10-K Part |         
|                                                                                                                                                                                                                    |  |                |         
|Portions of the Registrants notice of annual meeting of
    shareholders and proxy statement to be filed pursuant to
    Regulation 14A within 120 days after Registrants
    fiscal year end of January 31, 2005 |  |                | Part III | 









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HAYES LEMMERZ INTERNATIONAL, INC.


FORM 10-K ANNUAL REPORT


TABLE OF CONTENTS


|                                                                                                             |  |                                                                                                    |  |      |     |  |  | 
|------------------------------------------------------------------------------------------------------------ |  | -------------------------------------------------------------------------------------------------- |  | ---- | --- |  |  | 
|                                                                                                             |  |                                                                                                    |  | Page |    
|                                                                                                             |  |                                                                                                    |  |      |    
|PART I                                                                                                      
|Item 1.                                                                                                      |  | Business                                                                                           |  |      | 3   | 
|Item 2.                                                                                                      |  | Properties                                                                                         |  |      | 16  | 
|Item 3.                                                                                                      |  | Legal Proceedings                                                                                  |  |      | 17  | 
|Item 4.                                                                                                      |  | Submission of Matters to a Vote of Security
    Holders                                            |  |      | 20  | 
|PART II                                                                                                     
|Item 5.                                                                                                      |  | Market for Registrants Common Equity
    and Related Stockholder Matters                          |  |      | 20  | 
|Item 6.                                                                                                      |  | Selected Financial Data                                                                            |  |      | 21  | 
|Item 7.                                                                                                      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations          |  |      | 23  | 
|Item 7A.                                                                                                     |  | Quantitative and Qualitative Disclosures
    about Market Risk                                     |  |      | 46  | 
|Item 8.                                                                                                      |  | Consolidated Financial Statements and
    Supplementary Data                                       |  |      | 47  | 
|Item 9.                                                                                                      |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure           |  |      | 104 | 
|Item 9A.                                                                                                     |  | Controls and Procedures                                                                            |  |      | 104 | 
|PART III                                                                                                    
|Item 10.                                                                                                     |  | Directors and Executive Officers of the
    Registrant                                             |  |      | 106 | 
|Item 11.                                                                                                     |  | Executive Compensation                                                                             |  |      | 107 | 
|Item 12.                                                                                                     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters |  |      | 107 | 
|Item 13.                                                                                                     |  | Certain Relationships and Related
    Transactions                                                 |  |      | 107 | 
|Item 14.                                                                                                     |  | Principal Accountant Fees and Services                                                             |  |      | 108 | 
|PART IV                                                                                                     
|Item 15.                                                                                                     |  | Exhibits and Financial Statement
    Schedules                                                     |  |      | 108 | 
|Computation of Ratio of Earnings to Fixed Charges                                                           
|Preferability Letter of KPMG LLP                                                                            
|Subsidiaries of the Company                                                                                 
|Consent of KPMG LLP                                                                                         
|Section 302 Certification of Curtis J. Clawson, Chairman of the Board, President and Chief Executive Officer
|Section 302 Certification of James A. Yost, Vice President, Finance, and Chief Financial Officer            
|Section 906 Certification of Curtis J. Clawson, Chairman of the Board, President and Chief Executive Officer
|Section 906 Certification of James A. Yost, Vice President, Finance, and Chief Financial Officer            



FORWARD-LOOKING STATEMENTS


Unless otherwise indicated, references to the
Company mean Hayes Lemmerz International, Inc., and
its subsidiaries, and references to a fiscal year means the
Companys year commencing on February 1 of that year and
ending January 31 of the following year (e.g., fiscal 2004
means the period beginning February 1, 2004, and ending
January 31, 2005). This Annual Report on Form 10-K,
including Managements Discussion and Analysis of
Financial Condition and Results of Operations, includes
forward-looking statements within the meaning of the
Securities Act and Section 21E of the Securities Exchange
Act of 1934, as amended (the Exchange Act). All
statements other than statements of historical facts included in
this Annual Report on Form 10-K regarding the prospects of
the Companys industry and the Companys prospects,
plans, financial position and business strategy, may constitute
forward-looking statements. In addition, forward-looking
statements generally can be identified by the use of
forward-looking terminology such as may,
will, expect, intend,
estimate, anticipate, plan,
foresee, believe, or
continue, or the negatives of these terms or
variations of them or similar terminology. Although the Company
believes that the expectations reflected in these
forward-looking statements are reasonable, the Company can give
no assurance that these expectations will prove to be correct.
All subsequent written and oral forward-looking statements
attributable to the Company or persons acting on the
Companys behalf are expressly qualified in their entirety
by the cautionary statements included in this document. These
forward-


1



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looking statements speak only as of the date of this Annual
Report on Form 10-K. The Company will not update these
statements unless the securities laws require the Company to do
so. Important factors that could cause actual results to differ
materially from the Companys expectations are disclosed in
this Annual Report on Form 10-K, including in conjunction
with the forward-looking statements included in this Annual
Report on Form 10-K including, but not limited to:




| |   |                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------
| |  | Decreased demand in the automotive industry                                                                 
|
| |  | Changes in the automotive industry, including increased
    consolidation and cost reduction                
|
| |  | Pricing pressure from the Companys customers                                                               
|
| |  | Cyclical nature of the automotive industry                                                                  
|
| |  | Competition in the automotive supply industry, including from
    low cost sources                          
|
| |  | Dependence on major customers and the competitive position
    and financial condition of these customers   
|
| |  | Increased cost of supplies or raw materials, such as steel,
    aluminum, and energy                        
|
| |  | Unexpected production interruptions                                                                         
|
| |  | Dependence on key personnel                                                                                 
|
| |  | Exposure to product liability and warranty claims and other
    legal proceedings                           
|
| |  | Pending SEC investigation                                                                                   
|
| |  | Failure to achieve and maintain effective internal
    controls                                             
|
| |  | Technical or operational difficulties during the
    implementation of the Companys new information systems
|
| |  | Protection of the Companys intellectual property and
    potential infringement upon rights of others      
|
| |  | Effects of the Companys substantial level of debt on
    its operations                                    
|
| |  | The Companys inability to take certain actions due to
    restrictions in its debt agreements              
|
| |  | The Companys ability to implement operational
    improvements                                             
|
| |  | The Companys ability to execute its strategic plans                                                        
|
| |  | The Companys ability to successfully launch new
    products                                               
|
| |  | Technological or regulatory changes that could render the
    Companys products obsolete                   
|
| |  | Effects of political, regulatory, and legal conditions on the
    Companys international operations        
|
| |  | The Companys and its customers relations with
    employees                                               
|
| |  | Exposure to variable interest rates and foreign currency
    fluctuations                                   
|
| |  | Exposure to environmental liabilities                                                                       
|
| |  | Incurrence of asset impairment and other restructuring
    charges                                          
|
| |  | Lack of comparable financial data due to the adoption of
    fresh-start accounting                         
|
| |  | Global financial and economic instability.                                                                  

2



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PART I







|        |         
|------- | --------
|Item 1. | Business

General






Business Overview










3



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Industry Trends




Increasing Requirements for Global Capabilities.


Growing Demand for Full Service Suppliers.


Increasing Use of Aluminum in Vehicles.


Decreasing Dependence on Ford, DaimlerChrysler, and General
Motors.


4



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Competitive Strengths




Leading Market Positions across Products and Markets.


Diversified Base of Business.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Global Presence  The Company is a leading
    producer of aluminum and steel wheels, with 42 manufacturing and
    engineering facilities and one joint venture located in 14
    countries. The Company believes its manufacturing presence on
    five continents gives it an important competitive advantage in
    the global sourcing of wheels by OEM customers. The Company is
    the only direct supplier to OEMs (referred to as a
    Tier 1 supplier) that has significant
    automotive wheel operations in both the U.S. and Europe. In
    addition to the Companys global capabilities in automotive
    wheels, the Company maintains sales and support centers in
    Germany and Japan to support business development initiatives
    for cast aluminum suspension components in Europe and Asia.
|
| |  | Broad Customer Base  The Company believes that
    it supplies almost every major automotive manufacturer in the
    world and enjoys long-standing relationships with many
    automotive OEMs such as Ford, DaimlerChrysler, General Motors,
    Nissan/ Renault, Toyota, Honda, BMW, and Volkswagen. The Company
    supplies customers on a worldwide basis from facilities in North
    America, Europe, Asia, Latin America, and South Africa. The
    Companys Commercial Highway business supplies customers
    throughout the world.                                                                                                                                                                                                                                                                          
|
| |  | Diverse Product Portfolio  The Company
    provides automotive OEM customers with a diverse range of
    products. The Company believes its substantial product breadth
    provides a competitive advantage over its competitors who
    typically focus on a narrower product range in limited
    geographic markets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 



Low Cost Producer.


Strong OEM Relationships.


New Product Innovation.


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Full Service Capabilities.


Leading Position in Lightweight Aluminum Wheels and
Components.


Experienced Management Team.


Business Strategy




Leverage Market Leading Positions and Global
Capabilities.




Expand Low Cost Production Capabilities.


Enhance the Companys Strong Customer Relationships.


6



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Continue Leadership in New Product Innovation and Process
Development.


Focus on Operational Excellence.




| |   |                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | further rationalization of manufacturing capacity (for example,
    the Company recently announced its intention to close its
    facility in La Mirada, California and transfer production
    of the aluminum wheels manufactured at this facility to its
    Huntington, Indiana facility)
|
| |  | streamlining of marketing and general and administrative overhead                                                                                                                                                                                                                            
|
| |  | continued implementation of lean manufacturing and Six Sigma
    initiatives                                                                                                                                                                                                                 
|
| |  | efficient investment in new equipment and technologies and the
    upgrading of existing equipment                                                                                                                                                                                           
|
| |  | continued improvement of the Companys internal controls
    and centralization of certain aspects of its accounting and
    finance functions.                                                                                                                                              



Products




| |                     
| | --------------------
| | Cast Aluminum Wheels



North America.




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. In fiscal 2004, the Company sold the bulk of
    its North American cast aluminum wheel production to
    DaimlerChrysler, Ford, and General Motors for use on vehicles
    produced in North America. The remainder of its North American
    cast aluminum wheel production was sold to Japanese transplants
    in the United States. The Company also supplied German OEMs
    located in North America with wheels imported from overseas.
|
| | Competition. The Companys primary competitor in the
    North American cast aluminum wheel market is Superior Industries
    International, Inc. The Company also competes with Amcast
    Industrial Corp., EnKai, Dicastal, Prime, Alcoa, Inc., and other
    domestic suppliers operating in the United States.                                                                                                                                       

7



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Manufacturing. The Company currently has four cast
    aluminum manufacturing facilities in North America, located in
    Gainesville, Georgia; Huntington, Indiana; La Mirada,
    California (which the Company intends to close during 2005); and
    Chihuahua, Mexico. In January 2004, the Company acquired the
    cast aluminum wheel plant located in Chihuahua, Mexico in which
    the Company previously held a minority joint venture interest,
    to serve the North American market. The Company expects to
    complete an expansion and refurbishment of the Chihuahua and
    Gainesville facilities in 2005. Those projects are part of its
    effort to standardize global best practices. Engineering,
    research, and development for its North American cast aluminum
    operations are performed at its Northville, Michigan facility.

Europe.




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. Substantially all of the Companys
    European cast aluminum wheels are sold to BMW, DaimlerChrysler,
    Fiat, Ford, General Motors, Honda, Nissan/ Renault, Peugeot,
    Porsche, Renault, Toyota, and Volkswagen.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | Competition. Its primary competitors in the European cast
    aluminum wheel market for passenger cars are Ronal GmbH, Borbet
    Leichtmetallredes, CMS, and ATS Leichtmetallredes. The European
    cast aluminum wheel market is more fragmented than that of North
    America, with numerous producers possessing varying levels of
    financial resources and market positions. In 2004, the
    installation rate of cast aluminum wheels in Europe was
    significantly lower than in North America, and the Company
    expects demand for aluminum wheels to increase among European
    consumers and OEMs. Small local manufacturers across the
    European community may consolidate in the near future. Should
    such consolidation occur, the Company believes that the number
    of cast aluminum wheel manufacturers in Europe likely will
    decline and the remaining producers will increase their market
    shares. As a result of its position in Europe and its advanced
    engineering and technology, the Company believes that it is well
    positioned to capitalize on changes in the European markets.
|
| | Manufacturing. The Company has five cast aluminum
    manufacturing facilities in Europe, which are located in
    Barcelona, Spain; Dello, Italy; Campiglione, Italy; Hoboken,
    Belgium; and Ostrava, Czech Republic, as well as a joint venture
    in Manisa, Turkey. The Company utilizes low pressure casting
    technologies to manufacture aluminum wheels in its European
    facilities. Engineering, research, and development for its
    European cast aluminum wheel operations are performed at its
    Dello, Italy and Hoboken, Belgium facilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

South America, South Africa, and Asia.




| |                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Companys largest customers for South
    American cast aluminum wheels are Ford, General Motors, Nisson/
    Renault, and Volkswagen. The largest customers for its South
    African cast aluminum wheels are BMW, DaimlerChrysler, Dotz, and
    Volkswagen. The largest customers for its Asian cast aluminum
    wheels are Isuzu, Mitsubishi, Nissan/ Renault, and Toyota.                               
|
| | Competition. The Companys primary competitors in
    the South American cast aluminum wheel market for passenger cars
    are Italmagnesio S.A. and Mangels Industrial S.A. The Company
    competes in the South African cast aluminum wheel market for
    passenger cars with Tiger Wheels Limited. Its primary competitor
    in the Asian cast aluminum wheel market for passenger cars is
    Enkei International, Inc.
|
| | Manufacturing. The Company has one cast aluminum
    manufacturing facility in South America, which is located near
    Sao Paulo, Brazil. In South Africa, the Company has one cast
    aluminum wheel                                                                                                                                                                                                                       

8



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | manufacturing facility located near Johannesburg, South Africa.
    The Company has one cast aluminum wheel manufacturing facility
    in Asia, which is located near Bangkok, Thailand. Engineering,
    research, and development for its South American, South African
    and Asian cast aluminum wheel operations is currently performed
    at its facilities located in Dello, Italy; Johannesburg, South
    Africa; and Hoboken, Belgium.



| |                  
| | -----------------
| | Fabricated Wheels



North America.




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Company sold substantially all of its
    North American fabricated steel wheels to DaimlerChrysler, Ford,
    and General Motors in fiscal 2004. The Company produces
    fabricated aluminum wheels for DaimlerChyrsler, Ford, General
    Motors, and Toyota.                                                                                                                                                                                          
|
| | Competition. The Companys primary competitors in
    the North American steel wheel market for passenger cars and
    light trucks are ArvinMeritor, Inc., Topy Industries Ltd., and
    Central Manufacturing Company. The Company does not believe that
    it has any significant competitors in the North American
    fabricated aluminum wheel market.                                                                                                            
|
| | Manufacturing. The Companys fabricated steel and
    fabricated aluminum wheels are manufactured by a continuous
    in-line process at its manufacturing facility in Sedalia,
    Missouri. This process enhances quality standardization and
    reduces work-in-process inventory. Engineering, research, and
    development for its North American fabricated wheels operations
    is currently performed at its Northville and Ferndale, Michigan
    facilities.

Europe.




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. Its principal customers include BMW,
    DaimlerChrysler, Ford, General Motors, Honda, Kromag,
    Mitsubishi, Nissan/ Renault, PSA, Suzuki, Toyota, and Volkswagen
    Group. Its principal customer in Eastern Europe is Skoda, the
    national automobile manufacturer of the Czech Republic, for
    which the Company is the sole supplier of steel wheels.                                                                                                                                                                                                                                                                                                                                                                             
|
| | Competition. The Companys principal competitors for
    the sale of fabricated steel wheels in Europe include Compagnie
    Financiere, Michelin, Magnetto, Ford, and Volkswagen AG.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | Manufacturing. The Company has four fabricated wheel
    manufacturing facilities in Europe, located in Konigswinter,
    Germany; Manresa, Spain; Manisa, Turkey; and Ostrava, Czech
    Republic. Its Konigswinter, Germany facility has highly
    automated production equipment and extensive engineering,
    research, and development facilities. Its Manresa, Spain
    facility produces wheels for light trucks, recreational
    vehicles, and vans. The Manisa, Turkey facility produces wheels
    for the Turkish market and exports both OEM and aftermarket
    wheels to Western Europe. Its Ostrava, Czech Republic facility
    has advanced equipment required to meet the volume and quality
    demands of its European customers.

South America.


9



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Companys principal customers in
    Brazil and Argentina include DaimlerChrysler, Ford, General
    Motors, PSA, Nissan/ Renault, and Volkswagen.                                                                                                                                                                                                                                                                                                
|
| | Competition. The Companys principal competitor for
    the sale of fabricated steel wheels in Brazil and Argentina is
    ArvinMeritor, Inc.                                                                                                                                                                                                                                                                                                                    
|
| | Manufacturing. The Company has one fabricated steel wheel
    manufacturing facility located near Sao Paulo, Brazil. Its
    Brazilian fabricated steel wheel manufacturing facility has its
    own engineering, research and development facility and has been
    updated with new technology. In addition to serving the local
    market, its Brazilian facility ships fabricated wheels to North
    America to help meet the demands of its OEM customers.



| |                      
| | ---------------------
| | Suspension Components



Aluminum Structural Components.




| |                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Companys customers include
    DaimlerChrysler, Ford, General Motors, and Mitsubishi.                                                                                                                                                                                                                                
|
| | Competition. Given the level of manufacturing expertise
    required to produce aluminum structural components, there are
    only a few manufacturers in this segment and Alcoa, Inc. is the
    Companys primary competitor.                                                                                                      
|
| | Manufacturing. The Company designs, manufactures, and
    distributes structural aluminum subframes and crossmembers in
    Montague, Michigan and Bristol, Indiana. Engineering, research,
    and development for its aluminum structural components
    operations are currently performed at its Ferndale, Michigan
    facility.

Wheel-End Attachments and Assemblies.




| |                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. Its principal customers include North American
    OEMs such as DaimlerChrysler, Ford, and General Motors, as well
    as BMW, Honda, Mitsubishi, and Nissan/ Renault. The Company also
    sells to other Tier 1 suppliers including Bosch, Dana,
    Lemforder, and Visteon.                                                                                                                                            
|
| | Competition. Given the fragmented nature of the market,
    there are no competitors with significant market share. Its
    primary competitors are Intermet Corp., Citation Corp., and
    Grede Foundries, Inc.                                                                                                                                                                                                                    
|
| | Manufacturing. The Company manufactures aluminum and iron
    knuckles, spindles and spindle assemblies, iron hub carriers,
    and axle flanges at its facilities in Cadillac, Michigan;
    Southfield, Michigan; Montague, Michigan; and Bristol, Indiana.
    Its factories utilize various materials and casting processes to
    produce to specific product requirements, including weight,
    performance, safety, and cost.



| |                 
| | ----------------
| | Brake Components



10



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##### Table of Contents







| |                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Companys primary customers for its
    automotive brake components include DaimlerChrysler, Ford,
    Mazda, and Nissan/ Renault. In addition, the Company sells to
    other Tier 1 suppliers, such as Bosch, Continental Teves,
    Delphi, Akebono, and TRW Automotive, Inc.
|
| | Competition. The Companys principal competitors for
    the sale of automotive brake components are Delphi Corp., TRW
    Automotive, Inc., Bosch Automotive Systems Corporation, ADVICS
    Co., Ltd., and SANLUIS Corporacion, S.A. de C.V. (Rassini
    Division).                         
|
| | Manufacturing. The Company has two automotive brake
    facilities in North America, located in Homer, Michigan, and
    Monterrey, Mexico. Engineering, research, and development for
    its brake components operations is currently performed at its
    Ferndale, Michigan facility.      



| |                      
| | ---------------------
| | Powertrain Components





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Company supplies most of its powertrain
    components to DaimlerChrysler, Ford, and General Motors. The
    Company also supplies powertrain components to other Tier 1
    suppliers, such as Delphi, Bosch, and Hitachi Unisia Automotive.                                                                                                                                                                                                      
|
| | Competition. The Companys primary competitor in
    aluminum intake manifolds is Fort Wayne Foundry. The
    remainder of the market for aluminum intake manifolds is highly
    fragmented and comprises small independent suppliers. Key
    competitors in polymer intake manifolds include Siemens AG,
    Mann+Hummel Group, Montaplast GmBH, Delphi, and Mark IV
    Industries, Inc. Key competitors for exhaust manifolds include
    Wescast Industries.
|
| | Manufacturing. The Company has two powertrain component
    manufacturing facilities located in Wabash, Indiana, and Nuevo
    Laredo, Mexico. Engineering, research, and development for its
    powertrain components operations is currently performed at its
    Ferndale, Michigan facility.                                                                                                                                                                 



| |                            
| | ---------------------------
| | Commercial Highway Products



North America.




| |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Companys largest customers for
    commercial highway wheels and rims include Great Dane Trailers,
    Strick, Wabash, Hyundai, Utility, and Trailmobile, and its
    largest customers for commercial highway brake components
    include Freightliner, PACCAR, and Volvo. Its commercial highway
    sales are to truck and trailer OEMs, original equipment
    servicers, and aftermarket distributors.
|
| | Competition. The Companys principal competitors for
    the sale of commercial highway wheels and rims are Accuride
    Corp. and Alcoa, Inc. Its principal competitors for the sale of
    commercial highway                                                                                                                                                                                                             

11



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | hubs and drums are Gunite Corporation, Webb Wheel Products,
    Inc., ArvinMeritor, Inc., and Consolidated Metco.                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | Manufacturing. The Company has its manufacturing
    facilities in North America that produce components for the
    commercial highway market. These facilities are located in
    Akron, Ohio; Berea, Kentucky; Chattanooga, Tennessee; and Mexico
    City, Mexico. Engineering, research, and development for its
    commercial highway products operations is performed at its
    Northville, Michigan facility. The Company recently announced
    its intention to explore the potential divestiture of the North
    American commercial highway hub and drum business.

Europe.




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Companys principal customers for
    steel wheels for commercial highway vehicles are
    DaimlerChrysler, Nissan/ Renault, and Volvo.                                                                                                                                                                                                                                                                                                          
|
| | Competition. The Companys principal competitors for
    the sale of commercial highway wheels in Europe are Compagnie
    Financiere Michelin and Magnetto.                                                                                                                                                                                                                                                                                                    
|
| | Manufacturing. In Europe, the Company manufactures steel
    truck and trailer wheels at its highly automated Konigswinter,
    Germany facility. At this facility, the Company produces a
    variety of wheels for commercial highway vehicles and performs
    engineering, research, and development for its commercial
    highway products operations. The Company also manufactures steel
    truck and trailer wheels at its facility in Manisa, Turkey.

South America and Asia.




| |                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Customers. The Companys principal customers for
    steel wheels for commercial highway vehicles in South America
    are DaimlerChrysler, Ford, Randon, and Volkswagen. Its largest
    customers for steel wheels for commercial highway vehicles in
    Asia are Telco and Volvo.
|
| | Competition. The Companys principal competitor for
    the sale of commercial highway wheels in South America is FNV.
    Its principal competitor for the sale of commercial highway
    wheels in Asia is Wheels of India.                                                        
|
| | Manufacturing. The Company manufactures steel truck and
    trailer wheels in South America at its Sao Paulo, Brazil
    facility and in Asia at its Pune, India facility.                                                                                                           



| |                 
| | ----------------
| | Other Businesses



Business Segment and Geographical Information




Material Source and Supply




12



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Intellectual Property






Research and Development




Seasonality




13



---



##### Table of Contents



Customer Dependence






Backlog




Competition




Joint Ventures




Environmental Compliance




14



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Sales and Marketing




Employees




International Operations




Available Information




15



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|        |           
|------- | ----------
|Item 2. | Properties





|                                       |  |                                  |  |                           |  |         
|-------------------------------------- |  | -------------------------------- |  | ------------------------- |  | --------
|                                       |  |                                  |  |                           |  | Owned/  
|Location                               |  | Segment                          |  | Purpose                   |  | Leased  
|                                       |  |                                  |  |                           |  |         
|North America                          |  |                                  |  |                           |  |         
|Akron, OH                              |  | Other                            |  | Manufacturing             |  | Owned   
|AuGres, MI                             |  | Other                            |  | Manufacturing             |  | Owned   
|Berea, KY                              |  | Other                            |  | Manufacturing             |  | Owned*  
|Bristol, IN                            |  | Components                       |  | Manufacturing             |  | Owned   
|Cadillac, MI                           |  | Components                       |  | Manufacturing             |  | Owned   
|Chattanooga, TN                        |  | Other                            |  | Manufacturing             |  | Owned*  
|Chihuahua, Mexico                      |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Ferndale, MI                           |  | Components and Other             |  | Technical Center, Offices |  | Owned   
|Gainesville, GA                        |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Homer, MI                              |  | Components                       |  | Manufacturing             |  | Owned   
|Huntington, IN                         |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|La Mirada, CA                          |  | Automotive Wheels                |  | Manufacturing             |  | Leased**
|Laredo, TX                             |  | Components                       |  | Offices and Warehouse     |  | Leased  
|Mexico City, Mexico                    |  | Other                            |  | Manufacturing             |  | Owned*  
|Montague, MI                           |  | Components                       |  | Manufacturing             |  | Owned   
|Monterrey, Mexico                      |  | Components                       |  | Manufacturing             |  | Leased  
|Northville, MI                         |  | Other                            |  | World Headquarters, R&D   |  | Owned   
|Nuevo Laredo, Mexico                   |  | Components                       |  | Manufacturing             |  | Owned   
|Sedalia, MO                            |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Southfield, MI (2 facilities)          |  | Components                       |  | Manufacturing             |  | Owned   
|Wabash, IN                             |  | Components                       |  | Manufacturing             |  | Owned   
|Europe                                 |  |                                  |  |                           |  |         
|Barcelona, Spain                       |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Bergen, Netherlands                    |  | Components                       |  | Manufacturing             |  | Owned   
|Campiglione Fenile, Italy              |  | Automotive Wheels                |  | Manufacturing             |  | Leased**
|Dello, Italy                           |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Hoboken, Belgium (2 facilities)        |  | Automotive Wheels and Components |  | Manufacturing             |  | Owned   
|Königswinter, Germany (2 facilities)   |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Manisa, Turkey (2 facilities)          |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Manresa, Spain                         |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Ostrava, Czech Republic (2 facilities) |  | Automotive Wheels                |  | Manufacturing             |  | Owned   
|Tegelen, Netherlands                   |  | Components                       |  | Manufacturing             |  | Owned   

16



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|                                 |  |                   |  |               |  |       
|-------------------------------- |  | ----------------- |  | ------------- |  | ------
|                                 |  |                   |  |               |  | Owned/
|Location                         |  | Segment           |  | Purpose       |  | Leased
|                                 |  |                   |  |               |  |       
|Rest of the World                |  |                   |  |               |  |       
|Bangkok, Thailand                |  | Automotive Wheels |  | Manufacturing |  | Leased
|Johannesburg, S. Africa          |  | Automotive Wheels |  | Manufacturing |  | Owned 
|Pune, India                      |  | Automotive Wheels |  | Manufacturing |  | Leased
|Sao Paulo, Brazil (2 facilities) |  | Automotive Wheels |  | Manufacturing |  | Owned 
|Yokohama, Japan                  |  | Automotive Wheels |  | Sales Office  |  | Leased






|   |                                                                                                                                                                                  
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*  | The Company has announced that it is exploring the divestiture
    of the Companys North American Commercial Highway hub and
    drum business, which includes these facilities.
|  
|** | The Company has announced its intention to close this facility.                                                                                                                  






|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings







17



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18



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##### Table of Contents















19



---



##### Table of Contents


















|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II







|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters, and Issuer Purchases of Equity
    Securities



20



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www.otcbb.com www.pinksheets.com


|             |                |      |   |       |     |  |   |       | 
|------------ | -------------- | ---- | - | ----- | --- |  | - | ----- | 
|             |                | High |   |       | Low | 
|             |                |      |   |       |     | 
|Fiscal 2004: |                |      |   |       |     |  |   |      
|             | First quarter  |      | $ | 18.50 |     |  | $ | 13.48 | 
|             | Second quarter |      |   | 15.50 |     |  |   | 12.15 | 
|             | Third quarter  |      |   | 13.55 |     |  |   | 8.19  | 
|             | Fourth quarter |      |   | 9.72  |     |  |   | 6.80  | 

|             |                                                |      |   |       |     |  |   |       | 
|------------ | ---------------------------------------------- | ---- | - | ----- | --- |  | - | ----- | 
|             |                                                | High |   |       | Low | 
|             |                                                |      |   |       |     | 
|Fiscal 2003: |                                                |      |   |       |     |  |   |      
|             | Second quarter (June 4, 2003 to July 31, 2003) |      | $ | 14.90 |     |  | $ | 11.00 | 
|             | Third quarter                                  |      |   | 17.00 |     |  |   | 13.70 | 
|             | Fourth quarter                                 |      |   | 23.64 |     |  |   | 15.25 | 








|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data





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|                       |                                                                                                        |                                             |   |         |             |  |   |         |   |  |             |          |   |             |   |          |             |  |   |         |   |  |   |         |  
|---------------------- | ------------------------------------------------------------------------------------------------------ | ------------------------------------------- | - | ------- | ----------- |  | - | ------- | - |  | ----------- | -------- | - | ----------- | - | -------- | ----------- |  | - | ------- | - |  | - | ------- | -
|                       |                                                                                                        | Successor                                   |   |         | Predecessor | 
|                       |                                                                                                        |                                             |   |         |             | 
|                       |                                                                                                        | Twelve                                      |   |         | Eight       |  |   | Four    |   |  |            
|                       |                                                                                                        | Months                                      |   |         | Months      |  |   | Months  |   |  | Year        |          |   | Year        |   |          | Year        | 
|                       |                                                                                                        | Ended                                       |   |         | Ended       |  |   | Ended   |   |  | Ended       |          |   | Ended       |   |          | Ended       | 
|                       |                                                                                                        | January 31,                                 |   |         | January 31, |  |   | May 31, |   |  | January 31, |          |   | January 31, |   |          | January 31, | 
|                       |                                                                                                        | 2005                                        |   |         | 2004        |  |   | 2003    |   |  | 2003        |          |   | 2002        |   |          | 2001        | 
|                       |                                                                                                        |                                             |   |         |             |  |   |         |   |  |             |          |   |             |   |          |             | 
|                       |                                                                                                        | (dollars in millions, except share amounts) |  
|Income Statement Data: |                                                                                                        |                                             |   |         |             |  |   |         |   |  |             |          |   |             |   |          |             |  |   |         |   |  |   |        
|                       | Net sales                                                                                              |                                             | $ | 2,244.5 |             |  | $ | 1,366.6 |   |  | $           | 689.8    |   |             | $ | 2,001.6  |             |  | $ | 2,039.1 |   |  | $ | 2,168.2 |  
|                       | Depreciation and amortization                                                                          |                                             |   | 178.1   |             |  |   | 111.1   |   |  |             | 46.4     |   |             |   | 132.0    |             |  |   | 156.4   |   |  |   | 152.1   |  
|                       | Asset impairments and other restructuring charges                                                      |                                             |   | 9.3     |             |  |   | 28.9    |   |  |             | 6.4      |   |             |   | 43.5     |             |  |   | 141.6   |   |  |   | 127.7   |  
|                       | Loss on investment in joint venture                                                                    |                                             |   |        |             |  |   |        |   |  |             |         |   |             |   |         |             |  |   | 3.8     |   |  |   | 1.5     |  
|                       | Interest expense, net(1, 2)                                                                            |                                             |   | 43.9    |             |  |   | 42.1    |   |  |             | 22.7     |   |             |   | 72.7     |             |  |   | 175.2   |   |  |   | 163.5   |  
|                       | Subsidiary preferred stock dividends                                                                   |                                             |   | 0.8     |             |  |   | 0.5     |   |  |             |         |   |             |   |         |             |  |   |        |   |  |   |        |  
|                       | Reorganization items                                                                                   |                                             |   |        |             |  |   |        |   |  |             | 45.0     |   |             |   | 44.5     |             |  |   | 47.8    |   |  |   |        |  
|                       | Fresh start accounting adjustments(3)                                                                  |                                             |   |        |             |  |   |        |   |  |             | (63.1    | ) |             |   |         |             |  |   |        |   |  |   |        |  
|                       | Income tax expense                                                                                     |                                             |   | 19.7    |             |  |   | 10.9    |   |  |             | 60.3     |   |             |   | 3.6      |             |  |   | 11.8    |   |  |   | 9.7     |  
|                       | Loss before cumulative effect of a change in accounting
    principle and extraordinary gain           |                                             |   | (64.9   | )           |  |   | (46.5   | ) |  |             | (33.7    | ) |             |   | (80.1    | )           |  |   | (396.7  | ) |  |   | (186.2  | )
|                       | Cumulative effect of change in accounting principle, net of tax
    of $0.8, and $0.0, respectively(4) |                                             |   | 2.6     |             |  |   |        |   |  |             |         |   |             |   | (554.4   | )           |  |   |        |   |  |   |        |  
|                       | Extraordinary gain, net of tax of $0(3)                                                                |                                             |   |        |             |  |   |        |   |  |             | (1,076.7 | ) |             |   |         |             |  |   |        |   |  |   |        |  
|                       |                                                                                                        |                                             |   |         |             |  |   |         |   |  |             |          |   |             |   |          |             | 
|                       | Net income (loss)                                                                                      |                                             | $ | (62.3   | )           |  | $ | (46.5   | ) |  | $           | 1,043.0  |   |             | $ | (634.5   | )           |  | $ | (396.7  | ) |  | $ | (186.2  | )
|                       |                                                                                                        |                                             |   |         |             |  |   |         |   |  |             |          |   |             |   |          |             | 
|Balance Sheet Data:    |                                                                                                        |                                             |   |         |             |  |   |         |   |  |             |          |   |             |   |          |             |  |   |         |   |  |   |        
|                       | Total assets                                                                                           |                                             | $ | 2,302.0 |             |  | $ | 2,297.7 |   |  |             |          |   |             | $ | 1,846.6  |             |  | $ | 2,358.1 |   |  | $ | 2,603.9 |  
|                       | DIP facility, bank borrowings and current portion of long-term
    debt(1)                             |                                             |   | 11.1    |             |  |   | 25.5    |   |  |             |          |   |             |   | 105.8    |             |  |   | 42.2    |   |  |   | 1,693.3 |  
|                       | Long-term debt                                                                                         |                                             |   | 631.1   |             |  |   | 752.4   |   |  |             |          |   |             |   | 61.9     |             |  |   | 91.7    |   |  |   | 94.6    |  
|                       | Liabilities subject to compromise                                                                      |                                             |   |        |             |  |   |        |   |  |             |          |   |             |   | 2,133.8  |             |  |   | 2,121.0 |   |  |   |        |  
|                       | Stockholders equity (deficit)                                                                         |                                             |   | 701.3   |             |  |   | 595.9   |   |  |             |          |   |             |   | (1,074.4 | )           |  |   | (460.0  | ) |  |   | (21.8   | )
|Per Share Data:        |                                                                                                        |                                             |   |         |             |  |   |         |   |  |             |          |   |             |   |          |             |  |   |         |   |  |   |        
|                       | Loss before cumulative effect of a change in accounting
    principle and extraordinary gain           |                                             | $ | (1.73   | )           |  | $ | (1.55   | ) |  |             |          |   |             |   |         |             |  |   |        |   |  |   |        |  
|                       | Net loss                                                                                               |                                             | $ | (1.66   | )           |  | $ | (1.55   | ) |  |             |          |   |             |   |          |             |  |   |         |   |  |   |         |  
|                       | Average number of shares outstanding (in thousands)                                                    |                                             |   | 37,605  |             |  |   | 30,011  |   |  |             |          |   |             |   |          |             |  |   |         |   |  |   |         |  

22



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | See Note 1, Description of Business, Chapter 11
    Filings, and Emergence from Chapter 11, to the
    consolidated financial statements included herein.                                                                                                                                                                                                                                                                                                                                                            
|   
|(2) | For the four months ended May 31, 2003 and fiscal years
    ended January 31, 2003 and 2002, interest expense, net,
    excludes approximately $38.7 million, $117.6 million
    and $18.7 million, respectively, of interest expense that
    would have accrued from February 1, 2003 to May 31,
    2003, from February 1, 2002 to January 31, 2003 and
    from December 5, 2001 to January 31, 2002,
    respectively, with respect to certain long-term debt classified
    as liabilities subject to compromise.
|   
|(3) | See Note 3, Fresh Start Accounting, to the
    consolidated financial statements included herein.                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(4) | See Note 2, Basis of Presentation and Summary of
    Significant Accounting Policies, to the consolidated
    financial statements included herein.                                                                                                                                                                                                                                                                                                                                                                  






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations



Executive Summary




| |                 
| | ----------------
| | Company Overview





1 2


23



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##### Table of Contents





| |                              
| | -----------------------------
| | Industry and Economic Factors



| |               
| | --------------
| | Opportunities:





| |                                                  
| | -------------------------------------------------
| | An increasing requirement for global capabilities





| |                                            
| | -------------------------------------------
| | A growing demand for full service suppliers





| |                                          
| | -----------------------------------------
| | An increasing use of aluminum in vehicles





| |            
| | -----------
| | Challenges:





| |                           
| | --------------------------
| | Customer Pricing Pressures







| |            
| | -----------
| | Competition



24



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##### Table of Contents







| |                       
| | ----------------------
| | Concentration of Sales







| |             
| | ------------
| | Steel Supply





| |                                        
| | ---------------------------------------
| | Dependence on U.S. and Global Economies





25



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| |                      
| | ---------------------
| | Impact of Debt Levels

1 2


1 2




| |                                                         
| | --------------------------------------------------------
| | Interest Rate and Foreign Exchange Rate
    Fluctuations









| |                       
| | ----------------------
| | Significant Strategies



26



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##### Table of Contents







| |   |                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------
| |  | further rationalization of manufacturing capacity                                                                                              
|
| |  | streamlining of marketing and general and administrative overhead                                                                              
|
| |  | continued implementation of lean manufacturing and Six Sigma
    initiatives                                                                   
|
| |  | efficient investment in new equipment and technologies and the
    upgrading of existing equipment                                             
|
| |  | continued improvement of the Companys internal controls
    and centralization of certain aspects of its accounting and
    finance functions.



Chapter 11 Filings and Emergence from Chapter 11




| |                   
| | ------------------
| | Chapter 11 Filings







| |                          
| | -------------------------
| | Emergence from Chapter 11





27



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1 2




28



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Reorganization Items




|                                                                              |       |              |      |      |             |   |      |      | 
|----------------------------------------------------------------------------- | ----- | ------------ | ---- | ---- | ----------- | - | ---- | ---- | 
|                                                                              |       | Predecessor  |     
|                                                                              |       |              |     
|                                                                              |       | Four Months  |      |      | Year Ended  |  
|                                                                              |       | Ended        |      |      | January 31, |  
|                                                                              |       | May 31, 2003 |      |      | 2002        |  
|                                                                              |       |              |      |      |             |  
|Critical employee retention plan provision                                    |       | $            | 11.7 |      |             | $ | 7.3  |     
|Estimated accrued liability for rejected prepetition leases and
    contracts |       |              |     |      |             |   | 10.7 |     
|Professional fees related to the Filing                                       |       |              | 30.8 |      |             |   | 28.3 |     
|Creditors Trust obligation                                                   |       |              | 2.0  |      |             |   |     |     
|Settlement of prepetition liabilities                                         |       |              |     |      |             |   | (1.5 | )   
|Other                                                                         |       |              | 0.5  |      |             |   | (0.3 | )   
|                                                                              |       |              |      |      |             |  
|                                                                              | Total |              | $    | 45.0 |             |   | $    | 44.5 | 
|                                                                              |       |              |      |      |             |  









| |   |                                                                                                
| | - | -----------------------------------------------------------------------------------------------
| |  | one half of the restricted units will vest on the first
    anniversary of the Effective Date  
|
| |  | one half of the restricted units will vest on the second
    anniversary of the Effective Date.





29



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Results of Operations






st st st


30



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| |                                    
| | -----------------------------------
| | Fiscal 2004 Compared to Fiscal 2003



| |          
| | ---------
| | Net Sales

|                  |       |                       |         |         |      |   |         |          |  |   |       |       | 
|----------------- | ----- | --------------------- | ------- | ------- | ---- | - | ------- | -------- |  | - | ----- | ----- | 
|                  |       | 2004                  |         |         | 2003 |   |         | $ Change | 
|                  |       |                       |         |         |      |   |         |          | 
|                  |       | (Dollars in millions) |        
|Automotive Wheels |       | $                     | 1,388.8 |         |      | $ | 1,228.8 |          |  | $ | 160.0 |      
|Components        |       |                       | 696.5   |         |      |   | 708.3   |          |  |   | (11.8 | )    
|Other             |       |                       | 159.2   |         |      |   | 119.3   |          |  |   | 39.9  |      
|                  |       |                       |         |         |      |   |         |          | 
|                  | Total |                       | $       | 2,244.5 |      |   | $       | 2,056.4  |  |   | $     | 188.1 | 
|                  |       |                       |         |         |      |   |         |          | 











| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | Earnings (loss) from operations excluding fresh start
    accounting adjustments and reorganization items



|                                                                                                   |                                    |      |      |   |      |   |      |       |  
|-------------------------------------------------------------------------------------------------- | ---------------------------------- | ---- | ---- | - | ---- | - | ---- | ----- | -
|                                                                                                   |                                    | 2004 |      |   | 2003 |  
|                                                                                                   |                                    |      |      |   |      |  
|Earnings from operations                                                                           |                                    | $    | 21.7 |   |      | $ | 62.0 |      
|Excluding:                                                                                         |                                    |      |      |   |      |   |      |      
|                                                                                                   | Fresh start accounting adjustments |      |      |  |      |   |      | (63.1 | )
|                                                                                                   | Reorganization items               |      |      |  |      |   |      | 45.0  |  
|                                                                                                   |                                    |      |      |   |      |  
|Earnings from operations excluding fresh start accounting
    adjustments and reorganization items |                                    | $    | 21.7 |   |      | $ | 43.9 |      
|                                                                                                   |                                    |      |      |   |      |  

31



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|                                                                                                          |                                                 |                                                         |      |      |            |   |       |       |      |   |       |      |      |   |      |      |      |  
|--------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------- | ---- | ---- | ---------- | - | ----- | ----- | ---- | - | ----- | ---- | ---- | - | ---- | ---- | ---- | -
|                                                                                                          |                                                 | 2004                                                    |     
|                                                                                                          |                                                 |                                                         |     
|                                                                                                          |                                                 | Automotive                                              |      |      |           
|                                                                                                          |                                                 | Wheels                                                  |      |      | Components |   |       | Other |      |   | Total |     
|                                                                                                          |                                                 |                                                         |      |      |            |   |       |       |      |   |       |     
|Earnings (loss) from operations excluding fresh start accounting
    adjustments and reorganization items |                                                 | $                                                       | 54.4 |      |            | $ | (25.6 | )     |      | $ | (7.1  | )    |      | $ | 21.7 |     
|Asset impairments and other restructuring charges:                                                        |                                                 |                                                         |      |      |            |   |       |       |      |   |       |      |      |   |      |     
|                                                                                                          | Impairment of machinery, equipment, and tooling |                                                         | $    | (2.2 | )          |   | $     |      |      |   | $     |     |      |   | $    | (2.2 | )   
|                                                                                                          | Facility closure costs                          |                                                         |      | (4.8 | )          |   |       | 0.2   |      |   |       |     |      |   |      | (4.6 | )   
|                                                                                                          | Severance and other restructuring costs         |                                                         |      | (1.4 | )          |   |       | (0.6  | )    |   |       | (0.5 | )    |   |      | (2.5 | )   
|                                                                                                          |                                                 |                                                         |      |      |            |   |       |       |      |   |       |     
|                                                                                                          |                                                 | Total asset impairments and other restructuring charges |      | $    | (8.4       | ) |       | $     | (0.4 | ) |       | $    | (0.5 | ) |      | $    | (9.3 | )
|                                                                                                          |                                                 |                                                         |      |      |            |   |       |       |      |   |       |     

|                                                                                                          |                                                 |                                                         |      |       |            |   |      |       |       |   |       |   |   |   |       |       |       |  
|--------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ------------------------------------------------------- | ---- | ----- | ---------- | - | ---- | ----- | ----- | - | ----- | - | - | - | ----- | ----- | ----- | -
|                                                                                                          |                                                 | 2003                                                    |     
|                                                                                                          |                                                 |                                                         |     
|                                                                                                          |                                                 | Automotive                                              |      |       |           
|                                                                                                          |                                                 | Wheels                                                  |      |       | Components |   |      | Other |       |   | Total |  
|                                                                                                          |                                                 |                                                         |      |       |            |   |      |       |       |   |       |  
|Earnings (loss) from operations excluding fresh start accounting
    adjustments and reorganization items |                                                 | $                                                       | 57.6 |       |            | $ | 9.3  |       |       | $ | (23.0 | ) |   | $ | 43.9  |      
|Fresh start accounting adjustments                                                                        |                                                 |                                                         | 57.9 |       |            |   | 27.7 |       |       |   | (22.5 | ) |   |   | 63.1  |      
|Reorganization items                                                                                      |                                                 |                                                         | (0.1 | )     |            |   | 0.2  |       |       |   | (45.1 | ) |   |   | (45.0 | )    
|Asset impairments and other restructuring charges:                                                        |                                                 |                                                         |      |       |            |   |      |       |       |   |       |   |   |   |       |      
|                                                                                                          | Impairment of manufacturing facilities          |                                                         | $    | (1.5  | )          |   | $    | (0.9  | )     |   | $     |  |   |   | $     | (2.4  | )    
|                                                                                                          | Impairment of machinery, equipment, and tooling |                                                         |      | (21.4 | )          |   |      | (10.0 | )     |   |       |  |   |   |       | (31.4 | )    
|                                                                                                          | Facility closure costs                          |                                                         |      | (0.9  | )          |   |      |      |       |   |       |  |   |   |       | (0.9  | )    
|                                                                                                          | Severance and other restructuring costs         |                                                         |      | (0.6  | )          |   |      |      |       |   |       |  |   |   |       | (0.6  | )    
|                                                                                                          |                                                 |                                                         |      |       |            |   |      |       |       |   |       |  
|                                                                                                          |                                                 | Total asset impairments and other restructuring charges |      | $     | (24.4      | ) |      | $     | (10.9 | ) |       | $ |  |   |       | $     | (35.3 | )
|                                                                                                          |                                                 |                                                         |      |       |            |   |      |       |       |   |       |  





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| |                      
| | ---------------------
| | Interest Expense, net







| |             
| | ------------
| | Income Taxes





| |                                    
| | -----------------------------------
| | Fiscal 2003 Compared to Fiscal 2002



| |          
| | ---------
| | Net Sales

|                  |       |                       |         |         |      |   |         |          |  |   |       |      | 
|----------------- | ----- | --------------------- | ------- | ------- | ---- | - | ------- | -------- |  | - | ----- | ---- | 
|                  |       | 2003                  |         |         | 2002 |   |         | $ Change | 
|                  |       |                       |         |         |      |   |         |          | 
|                  |       | (Dollars in millions) |        
|Automotive Wheels |       | $                     | 1,228.8 |         |      | $ | 1,168.8 |          |  | $ | 60.0  |     
|Components        |       |                       | 708.3   |         |      |   | 737.7   |          |  |   | (29.4 | )   
|Other             |       |                       | 119.3   |         |      |   | 95.1    |          |  |   | 24.2  |     
|                  |       |                       |         |         |      |   |         |          | 
|                  | Total |                       | $       | 2,056.4 |      |   | $       | 2,001.6  |  |   | $     | 54.8 | 
|                  |       |                       |         |         |      |   |         |          | 





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| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | Earnings (loss) from operations excluding fresh start
    accounting adjustments and reorganization items



|                                                                                                   |                                    |      |      |       |      |   |      |      | 
|-------------------------------------------------------------------------------------------------- | ---------------------------------- | ---- | ---- | ----- | ---- | - | ---- | ---- | 
|                                                                                                   |                                    | 2003 |      |       | 2002 |  
|                                                                                                   |                                    |      |      |       |      |  
|Earnings (loss) from operations                                                                    |                                    | $    | 62.0 |       |      | $ | (0.3 | )   
|Excluding:                                                                                         |                                    |      |      |       |      |   |      |     
|                                                                                                   | Fresh start accounting adjustments |      |      | (63.1 | )    |   |      |     | 
|                                                                                                   | Reorganization items               |      |      | 45.0  |      |   |      | 44.5 | 
|                                                                                                   |                                    |      |      |       |      |  
|Earnings from operations excluding fresh start accounting
    adjustments and reorganization items |                                    | $    | 43.9 |       |      | $ | 44.2 |     
|                                                                                                   |                                    |      |      |       |      |  



|                                                                                                          |                                                |                                                         |      |       |            |   |      |       |       |   |       |   |   |   |       |       |       |  
|--------------------------------------------------------------------------------------------------------- | ---------------------------------------------- | ------------------------------------------------------- | ---- | ----- | ---------- | - | ---- | ----- | ----- | - | ----- | - | - | - | ----- | ----- | ----- | -
|                                                                                                          |                                                | 2003                                                    |     
|                                                                                                          |                                                |                                                         |     
|                                                                                                          |                                                | Automotive                                              |      |       |           
|                                                                                                          |                                                | Wheels                                                  |      |       | Components |   |      | Other |       |   | Total |  
|                                                                                                          |                                                |                                                         |      |       |            |   |      |       |       |   |       |  
|Earnings (loss) from operations excluding fresh start accounting
    adjustments and reorganization items |                                                | $                                                       | 57.6 |       |            | $ | 9.3  |       |       | $ | (23.0 | ) |   | $ | 43.9  |      
|Fresh start accounting adjustments                                                                        |                                                |                                                         | 57.9 |       |            |   | 27.7 |       |       |   | (22.5 | ) |   |   | 63.1  |      
|Reorganization items                                                                                      |                                                |                                                         | (0.1 | )     |            |   | 0.2  |       |       |   | (45.1 | ) |   |   | (45.0 | )    
|Asset impairments and other restructuring charges:                                                        |                                                |                                                         |      |       |            |   |      |       |       |   |       |   |   |   |       |      
|                                                                                                          | Impairment of manufacturing facilities         |                                                         | $    | (1.5  | )          |   | $    | (0.9  | )     |   | $     |  |   |   | $     | (2.4  | )    
|                                                                                                          | Impairment of machinery, equipment and tooling |                                                         |      | (21.4 | )          |   |      | (10.0 | )     |   |       |  |   |   |       | (31.4 | )    
|                                                                                                          | Facility closure costs                         |                                                         |      | (0.9  | )          |   |      |      |       |   |       |  |   |   |       | (0.9  | )    
|                                                                                                          | Severance and other restructuring costs        |                                                         |      | (0.6  | )          |   |      |      |       |   |       |  |   |   |       | (0.6  | )    
|                                                                                                          |                                                |                                                         |      |       |            |   |      |       |       |   |       |  
|                                                                                                          |                                                | Total asset impairments and other restructuring charges |      | $     | (24.4      | ) |      | $     | (10.9 | ) |       | $ |  |   |       | $     | (35.3 | )
|                                                                                                          |                                                |                                                         |      |       |            |   |      |       |       |   |       |  

34



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|                                                                                                          |                                                |                                                         |      |       |            |   |      |       |      |   |       |      |      |   |       |       |       |  
|--------------------------------------------------------------------------------------------------------- | ---------------------------------------------- | ------------------------------------------------------- | ---- | ----- | ---------- | - | ---- | ----- | ---- | - | ----- | ---- | ---- | - | ----- | ----- | ----- | -
|                                                                                                          |                                                | 2002                                                    |     
|                                                                                                          |                                                |                                                         |     
|                                                                                                          |                                                | Automotive                                              |      |       |           
|                                                                                                          |                                                | Wheels                                                  |      |       | Components |   |      | Other |      |   | Total |     
|                                                                                                          |                                                |                                                         |      |       |            |   |      |       |      |   |       |     
|Earnings (loss) from operations excluding fresh start accounting
    adjustments and reorganization items |                                                | $                                                       | 40.5 |       |            | $ | 26.1 |       |      | $ | (22.4 | )    |      | $ | 44.2  |      
|Reorganization items                                                                                      |                                                |                                                         | (8.0 | )     |            |   | (1.0 | )     |      |   | (35.5 | )    |      |   | (44.5 | )    
|Asset impairments and other restructuring charges:                                                        |                                                |                                                         |      |       |            |   |      |       |      |   |       |      |      |   |       |      
|                                                                                                          | Impairment of manufacturing facilities         |                                                         | $    | (1.7  | )          |   | $    | (0.8  | )    |   | $     |     |      |   | $     | (2.5  | )    
|                                                                                                          | Impairment of machinery, equipment and Tooling |                                                         |      | (25.1 | )          |   |      | (0.8  | )    |   |       | (0.5 | )    |   |       | (26.4 | )    
|                                                                                                          | Facility closure costs                         |                                                         |      | (6.7  | )          |   |      |      |      |   |       |     |      |   |       | (6.7  | )    
|                                                                                                          | Severance and other restructuring costs        |                                                         |      | (2.9  | )          |   |      | (1.0  | )    |   |       | (4.0 | )    |   |       | (7.9  | )    
|                                                                                                          |                                                |                                                         |      |       |            |   |      |       |      |   |       |     
|                                                                                                          |                                                | Total asset impairments and other restructuring charges |      | $     | (36.4      | ) |      | $     | (2.6 | ) |       | $    | (4.5 | ) |       | $     | (43.5 | )
|                                                                                                          |                                                |                                                         |      |       |            |   |      |       |      |   |       |     





35



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| |                      
| | ---------------------
| | Interest Expense, net







| |             
| | ------------
| | Income Taxes





| |                                
| | -------------------------------
| | Liquidity and Capital Resources



| |           
| | ----------
| | Cash Flows

Operating Activities:


36



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Investing Activities:




Financing Activities:








| |                     
| | --------------------
| | Sources of Liquidity







| |                        
| | -----------------------
| | Other Liquidity Matters



37



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| |               
| | --------------
| | Credit Ratings

|                        |  |     |    |   |         |  |    | 
|----------------------- |  | --- | -- | - | ------- |  | -- | 
|                        |  | S&P |    |   | Moodys | 
|                        |  |     |    |   |         | 
|Senior secured rating   |  |     | BB | - |         |  | B1 | 
|Senior unsecured rating |  |     | B  |   |         |  | B3 | 



| |                                
| | -------------------------------
| | Significant Financial Covenants





| |   |                                                                                              
| | - | ---------------------------------------------------------------------------------------------
| |  | declare dividends or redeem or repurchase capital stock                                      
|
| |  | prepay, redeem or purchase debt, including the Senior Notes                                  
|
| |  | incur liens and engage in sale-leaseback transactions                                        
|
| |  | make loans and investments                                                                   
|
| |  | incur additional debt, including borrowings under the
    Companys revolving credit facility
|
| |  | amend or otherwise alter certain debt documents                                              
|
| |  | make capital expenditures                                                                    
|
| |  | engage in mergers, acquisitions and asset sales                                              
|
| |  | enter into transactions with affiliates                                                      
|
| |  | alter the business the Company conducts.                                                     







| |   |                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | requiring a substantial portion of the Companys cash flow
    from operations to be dedicated to debt service and therefore
    not available to the Company for operations, capital
    expenditures, and future business opportunities
|
| |  | increasing the Companys vulnerability to a downturn in
    general economic conditions or in its business                                                                                                                               

38



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| |   |                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | limiting the Companys ability to adjust to changing market
    conditions, placing the Company at a competitive disadvantage
    compared to its competitors that have relatively less debt            
|
| |  | limiting the Companys ability to obtain additional
    financing or access its revolving credit facility in the future
    for capital expenditures, working capital or general corporate
    purposes.



| |                        
| | -----------------------
| | Postretirement Benefits





| |                               
| | ------------------------------
| | Off Balance Sheet Arrangements





| |                        
| | -----------------------
| | Contractual Obligations



|                                         |                   |                       |      |      |       |   |      |       |  |   |         |       |  |       |       |       |  |   |       |       | 
|---------------------------------------- | ----------------- | --------------------- | ---- | ---- | ----- | - | ---- | ----- |  | - | ------- | ----- |  | ----- | ----- | ----- |  | - | ----- | ----- | 
|                                         |                   | Payment Due by Period |     
|                                         |                   |                       |     
|                                         |                   | Less Than             |      |      | 1-3   |   |      | 4-5   |  |   | After   |       |  |      
|                                         |                   | 1 Year                |      |      | Years |   |      | Years |  |   | 5 Years |       |  | Total |      
|                                         |                   |                       |      |      |       |   |      |       |  |   |         |       |  |       |      
|Short-term borrowings                    |                   | $                     | 0.6  |      |       | $ |     |       |  | $ |        |       |  | $     |      |       |  | $ | 0.6   |      
|Long-term debt                           |                   |                       | 6.0  |      |       |   | 51.5 |       |  |   | 387.7   |       |  |       | 162.4 |       |  |   | 607.6 |      
|Mortgage note payable                    |                   |                       | 0.2  |      |       |   |     |       |  |   | 22.0    |       |  |       |      |       |  |   | 22.2  |      
|Capital lease obligations                |                   |                       | 4.3  |      |       |   | 2.9  |       |  |   | 4.6     |       |  |       |      |       |  |   | 11.8  |      
|Operating leases                         |                   |                       | 14.5 |      |       |   | 17.6 |       |  |   | 5.1     |       |  |       | 0.3   |       |  |   | 37.5  |      
|Redeemable preferred stock of subsidiary |                   |                       |     |      |       |   |     |       |  |   |        |       |  |       | 11.3  |       |  |   | 11.3  |      
|Capital expenditures                     |                   |                       | 32.7 |      |       |   |     |       |  |   |        |       |  |       |      |       |  |   | 32.7  |      
|                                         |                   |                       |      |      |       |   |      |       |  |   |         |       |  |       |      
|                                         | Total obligations |                       | $    | 58.3 |       |   | $    | 72.0  |  |   | $       | 419.4 |  |       | $     | 174.0 |  |   | $     | 723.7 | 
|                                         |                   |                       |      |      |       |   |      |       |  |   |         |       |  |       |      

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| |                        
| | -----------------------
| | Other Cash Requirements



|                                                                          |  |   |      | 
|------------------------------------------------------------------------- |  | - | ---- | 
|Interest                                                                  |  | $ | 58.3 | 
|Taxes                                                                     |  |   | 32.4 | 
|Short-term incentive compensation                                         |  |   | 9.0  | 
|Pension and other postretirement benefits funding                         |  |   | 35.4 | 
|Restructuring costs                                                       |  |   | 13.7 | 
|Various Automotive Wheels and Components customer satisfaction
    issues |  |   | 6.1  | 



| |             
| | ------------
| | Market Risks





| |                 
| | ----------------
| | Foreign Exchange









| |               
| | --------------
| | Interest Rates



40



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| |            
| | -----------
| | Commodities





| |              
| | -------------
| | Other Matters



| |          
| | ---------
| | Inflation





| |                                     
| | ------------------------------------
| | Technological and Regulatory Changes





| |                         
| | ------------------------
| | International Operations





| |   |                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | agreements may be difficult to enforce and receivables difficult
    to collect through a foreign countrys legal system                                                                                                    
|
| |  | foreign customers may have longer payment cycles                                                                                                                                                                            
|
| |  | foreign countries may impose additional withholding taxes or
    otherwise tax the Companys foreign income, impose tariffs,
    or adopt other restrictions on foreign trade or investment,
    including exchange controls
|
| |  | United States export licenses may be difficult to obtain                                                                                                                                                                    
|
| |  | intellectual property rights may be more difficult to enforce in
    foreign countries                                                                                                                                      

41



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| |   |                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | political or economic conditions in the countries in which the
    Company operates could have an adverse effect on its earnings
    from operations in those countries                             
|
| |  | unexpected adverse changes in foreign laws or regulatory
    requirements may occur                                                                                                                 
|
| |  | compliance with a variety of foreign laws and regulations may be
    difficult                                                                                                                      
|
| |  | differing foreign tax structures may subject the Company to
    additional taxes or affect the Companys ability to
    repatriate cash from its foreign subsidiaries in a tax-efficient
    manner.





| |                                                                              
| | -----------------------------------------------------------------------------
| | Influence on the Companys Board of Directors by
    Significant Stockholders



|                           |  |        |           |     |               |  |     |  
|-------------------------- |  | ------ | --------- | --- | ------------- |  | --- | -
|Stockholder                |  | Shares |           |     | Percentage(1) | 
|                           |  |        |           |     |               | 
|AP Wheels, LLC             |  |        | 3,346,983 | (2) |               |  | 9.0 | %
|Atticus Capital. L.L.C.    |  |        | 3,056,785 |     |               |  | 8.2 | %
|Perry Corp.                |  |        | 2,514,800 |     |               |  | 6.8 | %
|Deutsche Bank AG           |  |        | 2,289,420 |     |               |  | 6.1 | %
|Amalgamated Gadget, L.P.   |  |        | 2,199,002 |     |               |  | 5.9 | %
|Credit Suisse First Boston |  |        | 2,048,237 |     |               |  | 5.5 | %






|    |                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------
|(1) | Based on 37,265,962 shares outstanding at March 15,
    2005.                                                                 
|   
|(2) | Excludes shares issuable on exercise of warrants or conversion
    of shares of preferred stock of HLI Operating Company, Inc.







42



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| |                             
| | ----------------------------
| | Critical Accounting Policies





| |                                                            
| | -----------------------------------------------------------
| | Asset impairment losses and other restructuring
    charges







| |                                                            
| | -----------------------------------------------------------
| | Pension and postretirement benefits other than
    pensions





43



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| |                            
| | ---------------------------
| | Goodwill impairment testing







| |                                     
| | ------------------------------------
| | Allowance for uncollectible accounts





| |             
| | ------------
| | Income Taxes

Accounting for Income Taxes




44



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##### Table of Contents









| |                                                         
| | --------------------------------------------------------
| | Valuation of Series A Warrants and Series B
    Warrants





| |                              
| | -----------------------------
| | New Accounting Pronouncements







45



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##### Table of Contents








|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures about Market
    Risk



46



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##### Table of Contents








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

HAYES LEMMERZ INTERNATIONAL, INC.


INDEX TO FINANCIAL STATEMENTS


|                                                                         |  |      |    | 
|------------------------------------------------------------------------ |  | ---- | -- | 
|                                                                         |  | Page |   
|                                                                         |  |      |   
|Report of Independent Registered Public
    Accounting Firm              |  |      | 48 | 
|Consolidated Statements of Operations                                    |  |      | 50 | 
|Consolidated Balance Sheets                                              |  |      | 51 | 
|Consolidated Statements of Cash Flows                                    |  |      | 52 | 
|Consolidated Statements of Changes in
    Stockholders Equity (Deficit) |  |      | 53 | 
|Notes to Consolidated Financial
    Statements                           |  |      | 54 | 

47



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












Internal Control  Integrated Framework






48



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| |             
| | ------------
| | /s/ KPMG LLP





49



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |         |   |   |         |        |   |  | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ----------------------------------- | ----- | ------------ | ---- | ------- | ----------- | ----- | ---- | ----------- | ------- | - | - | ------- | ------ | - |  | 
|                                                                                                                                                                                                                             |                                                                                                                                               | Successor                                       |                                     |       | Predecessor  |     
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |     
|                                                                                                                                                                                                                             |                                                                                                                                               | Year                                            |                                     |       | Eight Months |      |         | Four Months |       |      | Year        |        
|                                                                                                                                                                                                                             |                                                                                                                                               | Ended                                           |                                     |       | Ended        |      |         | Ended       |       |      | Ended       |        
|                                                                                                                                                                                                                             |                                                                                                                                               | January 31,                                     |                                     |       | January 31,  |      |         | May 31,     |       |      | January 31, |        
|                                                                                                                                                                                                                             |                                                                                                                                               | 2005                                            |                                     |       | 2004         |      |         | 2003        |       |      | 2003        |        
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             |                                                                                                                                               | (Dollars in millions, except per share amounts) |                                    
|Net sales                                                                                                                                                                                                                    |                                                                                                                                               | $                                               | 2,244.5                             |       |              | $    | 1,366.6 |             |       | $    | 689.8       |         |   | $ | 2,001.6 |       
|Cost of goods sold                                                                                                                                                                                                           |                                                                                                                                               |                                                 | 2,041.5                             |       |              |      | 1,225.8 |             |       |      | 611.3       |         |   |   | 1,793.9 |       
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             | Gross profit                                                                                                                                  |                                                 |                                     | 203.0 |              |      |         | 140.8       |       |      |             | 78.5    |   |   |         | 207.7  |  
|Marketing, general and administrative                                                                                                                                                                                        |                                                                                                                                               |                                                 | 166.5                               |       |              |      | 96.2    |             |       |      | 41.6        |         |   |   | 123.5   |       
|Amortization of intangible assets                                                                                                                                                                                            |                                                                                                                                               |                                                 | 13.8                                |       |              |      | 8.5     |             |       |      | 1.6         |         |   |   | 3.3     |       
|Asset impairments and other restructuring charges                                                                                                                                                                            |                                                                                                                                               |                                                 | 9.3                                 |       |              |      | 28.9    |             |       |      | 6.4         |         |   |   | 43.5    |       
|Other income, net                                                                                                                                                                                                            |                                                                                                                                               |                                                 | (8.3                                | )     |              |      | (4.3    | )           |       |      | (3.5        | )       |   |   | (6.8    | )     
|Reorganization items                                                                                                                                                                                                         |                                                                                                                                               |                                                 |                                    |       |              |      |        |             |       |      | 45.0        |         |   |   | 44.5    |       
|Fresh start accounting adjustments                                                                                                                                                                                           |                                                                                                                                               |                                                 |                                    |       |              |      |        |             |       |      | (63.1       | )       |   |   |        |       
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             | Earnings (loss) from operations                                                                                                               |                                                 |                                     | 21.7  |              |      |         | 11.5        |       |      |             | 50.5    |   |   |         | (0.3   | )
|Interest expense, net (excluding $38.7 million and
    $117.6 million not accrued on liabilities subject to
    compromise during the four months ended May 31, 2003, and
    the year ended January 31, 2003, respectively) |                                                                                                                                               |                                                 | 43.9                                |       |              |      | 42.1    |             |       |      | 22.7        |         |   |   | 72.7    |       
|Other non-operating expense                                                                                                                                                                                                  |                                                                                                                                               |                                                 | 1.7                                 |       |              |      | 1.1     |             |       |      |            |         |   |   |        |       
|Loss on early extinguishment of debt                                                                                                                                                                                         |                                                                                                                                               |                                                 | 12.2                                |       |              |      |        |             |       |      |            |         |   |   |        |       
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             | Earnings (loss) before taxes on income, minority interest,
    cumulative effect of change in accounting principle and
    extraordinary gain |                                                 |                                     | (36.1 | )            |      |         | (31.7       | )     |      |             | 27.8    |   |   |         | (73.0  | )
|Income tax expense                                                                                                                                                                                                           |                                                                                                                                               |                                                 | 19.7                                |       |              |      | 10.9    |             |       |      | 60.3        |         |   |   | 3.6     |       
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             | Loss before minority interest, cumulative effect of change in
    accounting principle and extraordinary gain                                 |                                                 |                                     | (55.8 | )            |      |         | (42.6       | )     |      |             | (32.5   | ) |   |         | (76.6  | )
|Minority interest                                                                                                                                                                                                            |                                                                                                                                               |                                                 | 9.1                                 |       |              |      | 3.9     |             |       |      | 1.2         |         |   |   | 3.5     |       
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             | Loss before cumulative effect of change in accounting principle
    and extraordinary gain                                                    |                                                 |                                     | (64.9 | )            |      |         | (46.5       | )     |      |             | (33.7   | ) |   |         | (80.1  | )
|Cumulative effect of change in accounting principle, net of tax
    of $0.8 and $0.0, respectively                                                                                                                           |                                                                                                                                               |                                                 | 2.6                                 |       |              |      |        |             |       |      |            |         |   |   | (554.4  | )     
|Extraordinary gain on debt discharge, net of tax of $0.0                                                                                                                                                                     |                                                                                                                                               |                                                 |                                    |       |              |      |        |             |       |      | 1,076.7     |         |   |   |        |       
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             | Net income (loss)                                                                                                                             |                                                 | $                                   | (62.3 | )            |      | $       | (46.5       | )     |      | $           | 1,043.0 |   |   | $       | (634.5 | )
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|Basic and diluted:                                                                                                                                                                                                           |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |         |   |   |         |       
|                                                                                                                                                                                                                             | Loss before cumulative effect of change in accounting principle
    and extraordinary gain                                                    |                                                 | $                                   | (1.73 | )            |      | $       | (1.55       | )     |      |             |         |   |   |         |        |  
|                                                                                                                                                                                                                             | Cumulative effect of change in accounting principle, net of tax
    of $0.8                                                                   |                                                 |                                     | 0.07  |              |      |         |            |       |      |             |         |   |   |         |        |  
|                                                                                                                                                                                                                             | Extraordinary gain on debt discharge                                                                                                          |                                                 |                                     |      |              |      |         |            |       |      |             |         |   |   |         |        |  
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             |                                                                                                                                               | Net loss                                        |                                     | $     | (1.66        | )    |         | $           | (1.55 | )    |             |         |   |   |         |        |   | 
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 |                                     |       |              |      |         |             |       |      |             |        
|                                                                                                                                                                                                                             |                                                                                                                                               |                                                 | Weighted average shares outstanding |       |              | 37.6 |         |             |       | 30.0 |             |         |   |   |         |        |   |  | 



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |         |       |       |     |         | 
|---------------------------------------------- | -------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------ | ----------- | ------- | ----- | ----- | --- | ------- | 
|                                               |                                                                                                                | Successor                                                                                                                          |                                           
|                                               |                                                                                                                |                                                                                                                                    |                                           
|                                               |                                                                                                                | January 31,                                                                                                                        |                                            |        | January 31, |        
|                                               |                                                                                                                | 2005                                                                                                                               |                                            |        | 2004        |        
|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |        
|                                               |                                                                                                                | (Dollars in millions,                                                                                                              |                                           
|                                               |                                                                                                                | except share amounts)                                                                                                              |                                           
|ASSETS                                        
|Current assets:                                |                                                                                                                |                                                                                                                                    |                                            |        |             |         |       |      
|                                               | Cash and cash equivalents                                                                                      |                                                                                                                                    | $                                          | 35.2   |             |         | $     | 48.5  |    
|                                               | Receivables, net of allowance of $6.2 million at
    January 31, 2005 and $6.6 million at January 31,
    2004 |                                                                                                                                    |                                            | 241.4  |             |         |       | 325.5 |    
|                                               | Other receivables                                                                                              |                                                                                                                                    |                                            | 77.0   |             |         |       |      |    
|                                               | Inventories                                                                                                    |                                                                                                                                    |                                            | 212.6  |             |         |       | 189.3 |    
|                                               | Deferred tax assets                                                                                            |                                                                                                                                    |                                            | 2.2    |             |         |       | 2.7   |    
|                                               | Prepaid expenses and other                                                                                     |                                                                                                                                    |                                            | 19.4   |             |         |       | 13.9  |    
|                                               | Assets held for sale                                                                                           |                                                                                                                                    |                                            | 7.7    |             |         |       | 12.4  |    
|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |        
|                                               |                                                                                                                |                                                                                                                                    | Total current assets                       |        |             | 595.5   |       |       |     | 592.3   | 
|Property, plant and equipment, net             |                                                                                                                |                                                                                                                                    | 1,000.3                                    |        |             |         | 966.5 |      
|Deferred tax assets                            |                                                                                                                |                                                                                                                                    | 9.8                                        |        |             |         | 7.9   |      
|Goodwill                                       |                                                                                                                |                                                                                                                                    | 417.9                                      |        |             |         | 416.2 |      
|Customer relationships, net                    |                                                                                                                |                                                                                                                                    | 155.3                                      |        |             |         | 160.8 |      
|Other intangible assets, net                   |                                                                                                                |                                                                                                                                    | 78.0                                       |        |             |         | 76.4  |      
|Other assets                                   |                                                                                                                |                                                                                                                                    | 45.2                                       |        |             |         | 77.6  |      
|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |        
|                                               |                                                                                                                |                                                                                                                                    | Total assets                               |        | $           | 2,302.0 |       |       | $   | 2,297.7 | 
|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |        
|                                              
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
|Current liabilities:                           |                                                                                                                |                                                                                                                                    |                                            |        |             |         |       |      
|                                               | Bank borrowings and other notes                                                                                |                                                                                                                                    | $                                          | 0.6    |             |         | $     | 14.2  |    
|                                               | Current portion of long-term debt                                                                              |                                                                                                                                    |                                            | 10.5   |             |         |       | 11.3  |    
|                                               | Accounts payable and accrued liabilities                                                                       |                                                                                                                                    |                                            | 405.3  |             |         |       | 355.5 |    
|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |        
|                                               |                                                                                                                |                                                                                                                                    | Total current liabilities                  |        |             | 416.4   |       |       |     | 381.0   | 
|Long-term debt, net of current portion         |                                                                                                                |                                                                                                                                    | 631.1                                      |        |             |         | 752.4 |      
|Deferred tax liabilities                       |                                                                                                                |                                                                                                                                    | 81.1                                       |        |             |         | 98.5  |      
|Pension and other long-term liabilities        |                                                                                                                |                                                                                                                                    | 426.6                                      |        |             |         | 428.0 |      
|Series A Warrants and Series B Warrants        |                                                                                                                |                                                                                                                                    | 0.5                                        |        |             |         | 8.2   |      
|Redeemable preferred stock of subsidiary       |                                                                                                                |                                                                                                                                    | 11.3                                       |        |             |         | 10.5  |      
|Minority interest                              |                                                                                                                |                                                                                                                                    | 33.7                                       |        |             |         | 23.2  |      
|Commitments and contingencies                  |                                                                                                                |                                                                                                                                    |                                            |        |             |         |       |      
|Stockholders equity:                          |                                                                                                                |                                                                                                                                    |                                            |        |             |         |       |      
|                                               | Preferred stock, 1,000,000 shares authorized, none issued
    or outstanding at January 31, 2005               |                                                                                                                                    |                                            |       |             |         |       |      |    
|                                               | Common stock, par value $0.01 per share:                                                                       |                                                                                                                                    |                                            |        |             |         |       |       |    
|                                               |                                                                                                                | 100,000,000 shares authorized; 37,865,962 and 30,000,000
    issued and outstanding at January 31, 2005 and 2004,
    respectively |                                            |        | 0.4         |         |       |       | 0.3 |        
|                                               | Additional paid in capital                                                                                     |                                                                                                                                    |                                            | 670.6  |             |         |       | 548.2 |    
|                                               | Accumulated deficit                                                                                            |                                                                                                                                    |                                            | (108.8 | )           |         |       | (46.5 | )  
|                                               | Accumulated other comprehensive income                                                                         |                                                                                                                                    |                                            | 139.1  |             |         |       | 93.9  |    
|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |        
|                                               |                                                                                                                |                                                                                                                                    | Total stockholders equity                 |        |             | 701.3   |       |       |     | 595.9   | 
|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |        
|                                               |                                                                                                                |                                                                                                                                    | Total liabilities and stockholders equity |        | $           | 2,302.0 |       |       | $   | 2,297.7 | 
|                                               |                                                                                                                |                                                                                                                                    |                                            |        |             |        



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |         |       |          |      |        |        |       |  
|------------------------------------------------------------ | ---------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------- | ---------------------------------------- | ------ | ------------ | ----- | ----- | ----------- | ------ | ----- | ----------- | ------- | ----- | -------- | ---- | ------ | ------ | ----- | -
|                                                             |                                                                                    | Successor                                                                                           |                                          |        | Predecessor  |      
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |      
|                                                             |                                                                                    | Year                                                                                                |                                          |        | Eight Months |       |       | Four Months |        |       | Year        |        
|                                                             |                                                                                    | Ended                                                                                               |                                          |        | Ended        |       |       | Ended       |        |       | Ended       |        
|                                                             |                                                                                    | January 31,                                                                                         |                                          |        | January 31,  |       |       | May 31,     |        |       | January 31, |        
|                                                             |                                                                                    | 2005                                                                                                |                                          |        | 2004         |       |       | 2003        |        |       | 2003        |        
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|                                                             |                                                                                    | (Dollars in millions)                                                                               |                                         
|Cash flows from operating activities:                        |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |         |       |          |      |       
|                                                             | Net income (loss)                                                                  |                                                                                                     | $                                        | (62.3  | )            |       | $     | (46.5       | )      |       | $           | 1,043.0 |       |          | $    | (634.5 | )     
|                                                             | Adjustments to reconcile net income (loss) to net cash provided
    by operations: |                                                                                                     |                                          |        |              |       |       |             |        |       |             |         |       |          |      |        |       
|                                                             |                                                                                    | Depreciation and tooling amortization                                                               |                                          |        | 164.3        |       |       |             | 102.6  |       |             |         | 44.8  |          |      |        | 128.7  |      
|                                                             |                                                                                    | Amortization of intangibles                                                                         |                                          |        | 13.8         |       |       |             | 8.5    |       |             |         | 1.6   |          |      |        | 3.3    |      
|                                                             |                                                                                    | Amortization of deferred financing fees and accretion of discount                                   |                                          |        | 3.7          |       |       |             | 2.4    |       |             |         | 1.6   |          |      |        | 5.9    |      
|                                                             |                                                                                    | Interest income resulting from fair value adjustment of
    Series A Warrants and Series B Warrants |                                          |        | (7.7         | )     |       |             | (1.1   | )     |             |         |      |          |      |        |       |      
|                                                             |                                                                                    | Change in deferred income taxes                                                                     |                                          |        | (8.0         | )     |       |             | (1.7   | )     |             |         | 51.3  |          |      |        | 14.4   |      
|                                                             |                                                                                    | Asset impairments                                                                                   |                                          |        | 2.2          |       |       |             | 28.4   |       |             |         | 5.3   |          |      |        | 28.9   |      
|                                                             |                                                                                    | Minority interest                                                                                   |                                          |        | 9.1          |       |       |             | 3.9    |       |             |         | 1.2   |          |      |        | 3.5    |      
|                                                             |                                                                                    | Subsidiary preferred stock dividends accrued                                                        |                                          |        | 0.8          |       |       |             | 0.5    |       |             |         |      |          |      |        |       |      
|                                                             |                                                                                    | Equity compensation expense                                                                         |                                          |        | 5.5          |       |       |             | 4.1    |       |             |         |      |          |      |        |       |      
|                                                             |                                                                                    | Goodwill impairment                                                                                 |                                          |        |             |       |       |             |       |       |             |         |      |          |      |        | 554.4  |      
|                                                             |                                                                                    | Loss on early extinguishment of debt                                                                |                                          |        | 12.2         |       |       |             |       |       |             |         |      |          |      |        |       |      
|                                                             |                                                                                    | Loss (gain) on disposal of assets and businesses                                                    |                                          |        | 0.9          |       |       |             | (0.4   | )     |             |         | (0.4  | )        |      |        | (0.5   | )    
|                                                             |                                                                                    | Changes in operating assets and liabilities that increase
    (decrease) cash flows:                |                                          |        |              |       |       |             |        |       |             |         |       |          |      |        |        |      
|                                                             |                                                                                    |                                                                                                     | Receivables                              |        |              | 93.2  |       |             |        | 6.1   |             |         |       | (13.7    | )    |        |        | (1.0  | )
|                                                             |                                                                                    |                                                                                                     | Other receivables                        |        |              | (77.0 | )     |             |        |      |             |         |       |         |      |        |        |      |  
|                                                             |                                                                                    |                                                                                                     | Inventories                              |        |              | (15.3 | )     |             |        | 16.0  |             |         |       | (4.0     | )    |        |        | (16.5 | )
|                                                             |                                                                                    |                                                                                                     | Prepaid expenses and other               |        |              | (8.7  | )     |             |        | 0.9   |             |         |       | 5.2      |      |        |        | 2.4   |  
|                                                             |                                                                                    |                                                                                                     | Accounts payable and accrued liabilities |        |              | 39.1  |       |             |        | 5.4   |             |         |       | (4.5     | )    |        |        | (0.7  | )
|                                                             |                                                                                    | Chapter 11 items:                                                                                   |                                          |        |              |       |       |             |        |       |             |         |       |          |      |        |        |      
|                                                             |                                                                                    |                                                                                                     | Reorganization items                     |        |              |      |       |             |        |      |             |         |       | 45.0     |      |        |        | 44.5  |  
|                                                             |                                                                                    |                                                                                                     | Fresh start accounting adjustments       |        |              |      |       |             |        |      |             |         |       | (63.1    | )    |        |        |      |  
|                                                             |                                                                                    |                                                                                                     | Extraordinary gain on debt discharge     |        |              |      |       |             |        |      |             |         |       | (1,076.7 | )    |        |        |      |  
|                                                             |                                                                                    |                                                                                                     | Interest accrued on Credit Agreement     |        |              |      |       |             |        |      |             |         |       | 16.9     |      |        |        | 54.6  |  
|                                                             |                                                                                    |                                                                                                     | Payments related to Chapter 11 Filings   |        |              | (1.2  | )     |             |        | (45.2 | )           |         |       | (22.4    | )    |        |        | (81.7 | )
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|                                                             |                                                                                    | Cash provided by operating activities                                                               |                                          |        | 164.6        |       |       |             | 83.9   |       |             |         | 31.1  |          |      |        | 105.7  |      
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|Cash flows from investing activities:                        |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |         |       |          |      |       
|                                                             | Purchase of property, plant, equipment and tooling                                 |                                                                                                     |                                          | (158.7 | )            |       |       | (106.7      | )      |       |             | (26.3   | )     |          |      | (106.8 | )     
|                                                             | Purchase of equipment previously leased                                            |                                                                                                     |                                          |       |              |       |       |            |        |       |             | (23.6   | )     |          |      |       |       
|                                                             | Purchase of businesses, net of cash acquired                                       |                                                                                                     |                                          |       |              |       |       | (19.8       | )      |       |             |        |       |          |      | (7.2   | )     
|                                                             | Proceeds from disposal of assets and businesses                                    |                                                                                                     |                                          | 0.7    |              |       |       | 4.7         |        |       |             | 0.8     |       |          |      | 9.6    |       
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|                                                             |                                                                                    | Cash used for investing activities                                                                  |                                          |        | (158.0       | )     |       |             | (121.8 | )     |             |         | (49.1 | )        |      |        | (104.4 | )    
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|Cash flows from financing activities:                        |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |         |       |          |      |       
|                                                             | Changes in bank borrowings and credit facilities                                   |                                                                                                     |                                          | (0.7   | )            |       |       | (16.0       | )      |       |             | (59.7   | )     |          |      | 14.5   |       
|                                                             | Proceeds from (redemption of) Senior Notes, net of discount and
    related fees   |                                                                                                     |                                          | (96.7  | )            |       |       |            |        |       |             | 242.8   |       |          |      |       |       
|                                                             | Proceeds from (redemption of) Term Loan, net of related fees                       |                                                                                                     |                                          | (16.0  | )            |       |       |            |        |       |             | 436.1   |       |          |      |       |       
|                                                             | Payment to prepetition lenders                                                     |                                                                                                     |                                          |       |              |       |       |            |        |       |             | (477.3  | )     |          |      |       |       
|                                                             | Payment to holders of Old Senior Notes                                             |                                                                                                     |                                          |       |              |       |       |            |        |       |             | (13.0   | )     |          |      |       |       
|                                                             | Repayment of long-term debt                                                        |                                                                                                     |                                          | (17.5  | )            |       |       | (83.9       | )      |       |             |        |       |          |      |       |       
|                                                             | Repayment of notes payable issued in connection with purchases
    of businesses   |                                                                                                     |                                          | (13.1  | )            |       |       |            |        |       |             | (2.0    | )     |          |      |       |       
|                                                             | Net proceeds from issuance of common stock                                         |                                                                                                     |                                          | 117.0  |              |       |       |            |        |       |             |        |       |          |      |       |       
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|                                                             |                                                                                    | Cash provided by (used for) financing activities                                                    |                                          |        | (27.0        | )     |       |             | (99.9  | )     |             |         | 126.9 |          |      |        | 14.5   |      
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|Effect of exchange rate changes on cash and cash equivalents |                                                                                    |                                                                                                     | 5.7                                      |        |              |       | 7.2   |             |        |       | 4.1         |         |       |          | 5.1  |       
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|                                                             | Increase (decrease) in cash and cash equivalents                                   |                                                                                                     |                                          | (14.7  | )            |       |       | (130.6      | )      |       |             | 113.0   |       |          |      | 20.9   |       
|                                                             | Adjustment for the elimination of the one month lag                                |                                                                                                     |                                          | 1.4    |              |       |       |            |        |       |             |        |       |          |      |       |       
|Cash and cash equivalents at beginning of period             |                                                                                    |                                                                                                     | 48.5                                     |        |              |       | 179.1 |             |        |       | 66.1        |         |       |          | 45.2 |       
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        
|Cash and cash equivalents at end of period                   |                                                                                    | $                                                                                                   | 35.2                                     |        |              | $     | 48.5  |             |        | $     | 179.1       |         |       | $        | 66.1 |       
|                                                             |                                                                                    |                                                                                                     |                                          |        |              |       |       |             |        |       |             |        



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS
EQUITY (DEFICIT)


|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |         |         |  
|--------------------------------------------------------------------------- | -------------------------------------------------------- | ------------------------------------------- | ----------- | ---------- | ----- | - | ------- | ------- |  | -------- | ------ | ----------- | ------------- | -------- | ----- | ------ | ------ | - | -------- | ------- | - | - | ------ | ----- | - | - | -------- | ------- | ------- | -
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        | Accumulated |               |          |      
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  | Retained |        |             | Other         |          |       |       
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  | Earnings |        |             | Comprehensive |          |       |       
|                                                                            |                                                          |                                             |             | Par        |       |   | Paid in |         |  | Treasury |        |             | (Accumulated  |          |       | Income |        |   |         
|                                                                            |                                                          | Shares                                      |             |            | Value |   |         | Capital |  |          | Stock  |             |               | Deficit) |       |        | (Loss) |   |          | Total   |  
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|                                                                            |                                                          | (Dollars in millions, except share amounts) |            
|Predecessor                                                                 |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |        
|Balance at January 31, 2002                                                 |                                                          |                                             | 28,455,995  |            |       | $ | 0.3     |         |  | $        | 235.1  |             |               | $        | (25.7 | )      |        | $ | (542.4   | )       |   | $ | (127.3 | )     |   | $ | (460.0   | )      
|Comprehensive loss:                                                         |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |        
|                                                                            | Net loss                                                 |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          | (634.5  | ) |   |        |      |   |   |          | (634.5  | )      
|                                                                            | Currency translation adjustment                          |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          |        |   |   |        | 47.5  |   |   |          | 47.5    |        
|                                                                            | Minimum pension liability adjustment                     |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          |        |   |   |        | (27.4 | ) |   |          | (27.4   | )      
|                                                                            |                                                          | Total comprehensive loss                    |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |         | (614.4  | )
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|Balance at January 31, 2003                                                 |                                                          |                                             | 28,455,995  |            |       | $ | 0.3     |         |  | $        | 235.1  |             |               | $        | (25.7 | )      |        | $ | (1,176.9 | )       |   | $ | (107.2 | )     |   | $ | (1,074.4 | )      
|Comprehensive income:                                                       |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |        
|                                                                            | Net income                                               |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          | 1,043.0 |   |   |        |      |   |   |          | 1,043.0 |        
|                                                                            | Currency translation adjustment                          |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          |        |   |   |        | 31.4  |   |   |          | 31.4    |        
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|                                                                            |                                                          | Total comprehensive income                  |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |         | 1,074.4 |  
|Elimination of Predecessor equity accounts under fresh start
    accounting |                                                          |                                             | (28,455,995 | )          |       |   | (0.3    | )       |  |          | (235.1 | )           |               |          | 25.7  |        |        |   | 133.9    |         |   |   | 75.8   |       |   |   |         |        
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|Balance at May 31, 2003                                                     |                                                          |                                             |            |            |       | $ |        |         |  | $        |       |             |               | $        |      |        |        | $ |         |         |   | $ |       |       |   | $ |         |        
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|Successor                                                                   |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |        
|Balance at May 31, 2003                                                     |                                                          |                                             |            |            |       | $ |        |         |  | $        |       |             |               | $        |      |        |        | $ |         |         |   | $ |       |       |   | $ |         |        
|Distribution of new common                                                  |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |        
|                                                                            | stock upon emergence                                     |                                             |             | 30,000,000 |       |   |         | 0.3     |  |          |        | 544.1       |               |          |       |       |        |   |          |        |   |   |        |      |   |   |          | 544.4   |        
|Comprehensive income:                                                       |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |        
|                                                                            | Net loss                                                 |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          | (46.5   | ) |   |        |      |   |   |          | (46.5   | )      
|                                                                            | Currency translation adjustment                          |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          |        |   |   |        | 93.9  |   |   |          | 93.9    |        
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|                                                                            |                                                          | Total comprehensive income                  |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |         | 47.4    |  
|Equity compensation expense                                                 |                                                          |                                             |            |            |       |   |        |         |  |          | 4.1    |             |               |          |      |        |        |   |         |         |   |   |       |       |   |   | 4.1      |        
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|Balance at January 31, 2004                                                 |                                                          |                                             | 30,000,000  |            |       | $ | 0.3     |         |  | $        | 548.2  |             |               | $        |      |        |        | $ | (46.5    | )       |   | $ | 93.9   |       |   | $ | 595.9    |        
|Comprehensive income:                                                       |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |        
|                                                                            | Net loss                                                 |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          | (62.3   | ) |   |        |      |   |   |          | (62.3   | )      
|                                                                            | Minimum pension liability adjustment, net of tax of $1.4 |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          |        |   |   |        | (2.2  | ) |   |          | (2.2    | )      
|                                                                            | Currency translation adjustment, net of tax of $0.3      |                                             |             |           |       |   |         |        |  |          |        |            |               |          |       |       |        |   |          |        |   |   |        | 47.4  |   |   |          | 47.4    |        
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|                                                                            |                                                          | Total comprehensive loss                    |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |   |   |        |       |   |   |          |         | (17.1   | )
|Issuance of common stock                                                    |                                                          |                                             | 7,720,970   |            |       |   | 0.1     |         |  |          | 116.9  |             |               |          |      |        |        |   |         |         |   |   |       |       |   |   | 117.0    |        
|Shares issued due to vesting of restricted stock units                      |                                                          |                                             | 144,992     |            |       |   |        |         |  |          |       |             |               |          |      |        |        |   |         |         |   |   |       |       |   |   |         |        
|Equity compensation expense                                                 |                                                          |                                             |            |            |       |   |        |         |  |          | 5.5    |             |               |          |      |        |        |   |         |         |   |   |       |       |   |   | 5.5      |        
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  
|Balance at January 31, 2005                                                 |                                                          |                                             | 37,865,962  |            |       | $ | 0.4     |         |  | $        | 670.6  |             |               | $        |      |        |        | $ | (108.8   | )       |   | $ | 139.1  |       |   | $ | 701.3    |        
|                                                                            |                                                          |                                             |             |            |       |   |         |         |  |          |        |             |               |          |       |        |        |   |          |         |  



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Year Ended January 31, 2005, Eight Months Ended
January 31, 2004, Four Months Ended


May 31, 2003 and Year Ended January 31, 2003




|        |                                                                              
|------- | -----------------------------------------------------------------------------
|Note 1. | Description of Business, Chapter 11 Filings and
    Emergence from Chapter 11



| |                        
| | -----------------------
| | Description of Business







| |                   
| | ------------------
| | Chapter 11 Filings







| |                          
| | -------------------------
| | Emergence from Chapter 11





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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








1 2




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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                              |       |             |      |      |             |   |      |      | 
|----------------------------------------------------------------------------- | ----- | ----------- | ---- | ---- | ----------- | - | ---- | ---- | 
|                                                                              |       | Predecessor |     
|                                                                              |       |             |     
|                                                                              |       | Four Months |      |      | Year        |  
|                                                                              |       | Ended       |      |      | Ended       |  
|                                                                              |       | May 31,     |      |      | January 31, |  
|                                                                              |       | 2003        |      |      | 2003        |  
|                                                                              |       |             |      |      |             |  
|Critical employee retention plan provision                                    |       | $           | 11.7 |      |             | $ | 7.3  |     
|Estimated accrued liability for rejected prepetition leases and
    contracts |       |             |     |      |             |   | 10.7 |     
|Professional fees related to the Filing                                       |       |             | 30.8 |      |             |   | 28.3 |     
|Creditors Trust obligation                                                   |       |             | 2.0  |      |             |   |     |     
|Settlement of prepetition liabilities                                         |       |             |     |      |             |   | (1.5 | )   
|Other                                                                         |       |             | 0.5  |      |             |   | (0.3 | )   
|                                                                              |       |             |      |      |             |  
|                                                                              | Total |             | $    | 45.0 |             |   | $    | 44.5 | 
|                                                                              |       |             |      |      |             |  









| |   |                                                                                                 
| | - | ------------------------------------------------------------------------------------------------
| |  | one half of the restricted units vested on the first anniversary
    of the Effective Date, and;
|
| |  | one half of the restricted units will vest on the second
    anniversary of the Effective Date. 



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                                                         
|------- | ------------------------------------------------------------------------
|Note 2. | Basis of Presentation and Summary of Significant Accounting
    Policies



| |                      
| | ---------------------
| | Basis of Presentation





| |                                           
| | ------------------------------------------
| | Summary of Significant Accounting Policies

Principles of Consolidation:


st st st


Cash and Cash Equivalents:


Accounts Receivable:


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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Inventories:


Property, Plant and Equipment:


|                        |  |  |             | 
|----------------------- |  |  | ----------- | 
|Buildings               |  |  | 12-25 years | 
|Machinery and equipment |  |  | 1-10  years | 



Special Tooling:


Goodwill and Other Intangible Assets:


Impairment of Long-lived Assets:


Financial Instruments: 1 2




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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)









Pension and Postretirement Benefits Other Than Pension:






Accumulated Other Comprehensive Income:


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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Revenue Recognition:


Research and Development Costs:


Asset Impairment Losses and Other Restructuring Charges:




Foreign Currency Translation/ Transaction:


Taxes on Income:


Use of Estimates:


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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Reclassifications:


Weighted Average Shares Outstanding:


|                                            |  |             |        |  |             |  |        | 
|------------------------------------------- |  | ----------- | ------ |  | ----------- |  | ------ | 
|                                            |  | Successor   |       
|                                            |  |             |       
|                                            |  | January 31, |        |  | January 31, | 
|                                            |  | 2005        |        |  | 2004        | 
|                                            |  |             |        |  |             | 
|Weighted average shares outstanding         |  |             | 37,605 |  |             |  | 30,011 | 
|Dilutive effect of options and warrants     |  |             |       |  |             |  |       | 
|                                            |  |             |        |  |             | 
|Diluted weighted average shares outstanding |  |             | 37,605 |  |             |  | 30,011 | 
|                                            |  |             |        |  |             | 



Statements of Cash Flows:


|                                           |                                                                                                          |             |   |       |             |  |      |         |  |  |             |     |  |  |   |      | 
|------------------------------------------ | -------------------------------------------------------------------------------------------------------- | ----------- | - | ----- | ----------- |  | ---- | ------- |  |  | ----------- | --- |  |  | - | ---- | 
|                                           |                                                                                                          | Successor   |   |       | Predecessor | 
|                                           |                                                                                                          |             |   |       |             | 
|                                           |                                                                                                          |             |   | Eight |             |  | Four |         |  | 
|                                           |                                                                                                          | Year        |   |       | Months      |  |      | Months  |  |  | Year        |    
|                                           |                                                                                                          | Ended       |   |       | Ended       |  |      | Ended   |  |  | Ended       |    
|                                           |                                                                                                          | January 31, |   |       | January 31, |  |      | May 31, |  |  | January 31, |    
|                                           |                                                                                                          | 2005        |   |       | 2004        |  |      | 2003    |  |  | 2003        |    
|                                           |                                                                                                          |             |   |       |             |  |      |         |  |  |             |    
|Supplemental cash flow disclosures:        |                                                                                                          |             |   |       |             |  |      |         |  |  |             |     |  |  |   |     
|                                           | Cash paid for interest, excluding adequate protection payments
    in the four months ended May 31, 2003 |             | $ | 51.2  |             |  | $    | 37.7    |  |  | $           | 5.8 |  |  | $ | 12.5 | 
|                                           | Cash paid for income taxes, net of refunds received                                                      |             |   | 27.9  |             |  |      | 24.6    |  |  |             | 2.9 |  |  |   | 4.3  | 
|Non-cash investing and financing activity: |                                                                                                          |             |   |       |             |  |      |         |  |  |             |     |  |  |   |     
|                                           | Notes issued to purchase businesses                                                                      |             |   |      |             |  |      | 11.6    |  |  |             |    |  |  |   | 2.0  | 

Stock-Based Compensation:


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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                  |             |             |   |       |              |  |   |       |  
|--------------------------------- | ----------- | ----------- | - | ----- | ------------ |  | - | ----- | -
|                                  |             | Successor   |  
|                                  |             |             |  
|                                  |             | Year        |   |       | Eight Months | 
|                                  |             | Ended       |   |       | Ended        | 
|                                  |             | January 31, |   |       | January 31,  | 
|                                  |             | 2005        |   |       | 2004         | 
|                                  |             |             |   |       |              | 
|Net loss:                         |             |             |   |       |              |  |   |      
|                                  | As reported |             | $ | (62.3 | )            |  | $ | (46.5 | )
|                                  | Pro forma   |             |   | (67.4 | )            |  |   | (50.3 | )
|Basic and diluted loss per share: |             |             |   |       |              |  |   |      
|                                  | As reported |             | $ | (1.66 | )            |  | $ | (1.55 | )
|                                  | Pro forma   |             |   | (1.79 | )            |  |   | (1.68 | )





|        |                       
|------- | ----------------------
|Note 3. | Fresh Start Accounting







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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                            
|------- | -------------------------------------------
|Note 4. | Acquisitions and Divestitures of Businesses













|        |            
|------- | -----------
|Note 5. | Inventories



|                         |       |             |      |       |             |   |      |       | 
|------------------------ | ----- | ----------- | ---- | ----- | ----------- | - | ---- | ----- | 
|                         |       | Successor   |     
|                         |       |             |     
|                         |       | January 31, |      |       | January 31, |  
|                         |       | 2005        |      |       | 2004        |  
|                         |       |             |      |       |             |  
|Raw materials            |       | $           | 55.8 |       |             | $ | 48.3 |      
|Work-in-process          |       |             | 47.4 |       |             |   | 42.2 |      
|Finished goods           |       |             | 73.1 |       |             |   | 61.8 |      
|Spare parts and supplies |       |             | 36.3 |       |             |   | 37.0 |      
|                         |       |             |      |       |             |  
|                         | Total |             | $    | 212.6 |             |   | $    | 189.3 | 
|                         |       |             |      |       |             |  

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                               
|------- | ------------------------------
|Note 6. | Property, Plant, and Equipment



|                         |                                     |             |         |         |             |   |         |       | 
|------------------------ | ----------------------------------- | ----------- | ------- | ------- | ----------- | - | ------- | ----- | 
|                         |                                     | Successor   |        
|                         |                                     |             |        
|                         |                                     | January 31, |         |         | January 31, |  
|                         |                                     | 2005        |         |         | 2004        |  
|                         |                                     |             |         |         |             |  
|Land                     |                                     | $           | 47.0    |         |             | $ | 42.4    |      
|Buildings                |                                     |             | 231.5   |         |             |   | 212.5   |      
|Machinery and equipment  |                                     |             | 954.3   |         |             |   | 793.7   |      
|Capital lease assets     |                                     |             | 8.4     |         |             |   | 8.4     |      
|                         |                                     |             |         |         |             |  
|                         |                                     |             | 1,241.2 |         |             |   | 1,057.0 |      
|Accumulated depreciation |                                     |             | (240.9  | )       |             |   | (90.5   | )    
|                         |                                     |             |         |         |             |  
|                         | Property, plant, and equipment, net |             | $       | 1,000.3 |             |   | $       | 966.5 | 
|                         |                                     |             |         |         |             |  



|                     |       |             |       |       |              |   |      |             |  |   |             |      |  |   |       |       | 
|-------------------- | ----- | ----------- | ----- | ----- | ------------ | - | ---- | ----------- |  | - | ----------- | ---- |  | - | ----- | ----- | 
|                     |       | Successor   |       |       | Predecessor  |  
|                     |       |             |       |       |              |  
|                     |       | Year        |       |       | Eight Months |   |      | Four Months |  |   | Year        |     
|                     |       | Ended       |       |       | Ended        |   |      | Ended       |  |   | Ended       |     
|                     |       | January 31, |       |       | January 31,  |   |      | May 31,     |  |   | January 31, |     
|                     |       | 2005        |       |       | 2004         |   |      | 2003        |  |   | 2003        |     
|                     |       |             |       |       |              |   |      |             |  |   |             |     
|Depreciation expense |       | $           | 148.4 |       |              | $ | 95.2 |             |  | $ | 39.8        |      |  | $ | 119.4 |      
|Tooling amortization |       |             | 15.9  |       |              |   | 7.4  |             |  |   | 5.0         |      |  |   | 9.3   |      
|                     |       |             |       |       |              |   |      |             |  |   |             |     
|                     | Total |             | $     | 164.3 |              |   | $    | 102.6       |  |   | $           | 44.8 |  |   | $     | 128.7 | 
|                     |       |             |       |       |              |   |      |             |  |   |             |     



|        |                     
|------- | --------------------
|Note 7. | Assets Held for Sale



|                                 |                      |             |     |     |             |   |     |      | 
|-------------------------------- | -------------------- | ----------- | --- | --- | ----------- | - | --- | ---- | 
|                                 |                      | Successor   |    
|                                 |                      |             |    
|                                 |                      | January 31, |     |     | January 31, |  
|                                 |                      | 2005        |     |     | 2004        |  
|                                 |                      |             |     |     |             |  
|Autokola Forklift Wheel business |                      | $           |    |     |             | $ | 7.6 |     
|Land and buildings               |                      |             | 7.7 |     |             |   | 4.8 |     
|                                 |                      |             |     |     |             |  
|                                 | Assets held for sale |             | $   | 7.7 |             |   | $   | 12.4 | 
|                                 |                      |             |     |     |             |  





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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|        |                                     
|------- | ------------------------------------
|Note 8. | Goodwill and Other Intangible Assets



|                                 |                        |                  |       |       |                  |   |       |          |   |       |          |       |  |              |       |       |          |   |       |      |   |   |       |       | 
|-------------------------------- | ---------------------- | ---------------- | ----- | ----- | ---------------- | - | ----- | -------- | - | ----- | -------- | ----- |  | ------------ | ----- | ----- | -------- | - | ----- | ---- | - | - | ----- | ----- | 
|                                 |                        | Successor        |      
|                                 |                        |                  |      
|                                 |                        | January 31, 2005 |       |       | January 31, 2004 |  
|                                 |                        |                  |       |       |                  |  
|                                 |                        | Gross            |       |       |                  |   | Net   |          |   | Gross |          |       |  |              | Net   |      
|                                 |                        | Carrying         |       |       | Accumulated      |   |       | Carrying |   |       | Carrying |       |  | Accumulated  |       |       | Carrying |  
|                                 |                        | Amount           |       |       | Amortization     |   |       | Amount   |   |       | Amount   |       |  | Amortization |       |       | Amount   |  
|                                 |                        |                  |       |       |                  |   |       |          |   |       |          |       |  |              |       |       |          |  
|Amortized intangible assets:     |                        |                  |       |       |                  |   |       |          |   |       |          |       |  |              |       |       |          |   |       |      |   |   |       |      
|                                 | Customer relationships |                  | $     | 169.8 |                  |   | $     | (14.5    | ) |       | $        | 155.3 |  |              | $     | 166.3 |          |   | $     | (5.5 | ) |   | $     | 160.8 | 
|                                 | Customer contracts     |                  |       | 3.0   |                  |   |       | (0.6     | ) |       |          | 2.4   |  |              |       | 3.0   |          |   |       | (0.3 | ) |   |       | 2.7   | 
|                                 | Unpatented technology  |                  |       | 41.1  |                  |   |       | (8.6     | ) |       |          | 32.5  |  |              |       | 36.7  |          |   |       | (4.6 | ) |   |       | 32.1  | 
|                                 |                        |                  |       |       |                  |   |       |          |   |       |          |       |  |              |       |       |          |  
|                                 |                        | $                | 213.9 |       |                  | $ | (23.7 | )        |   | $     | 190.2    |       |  | $            | 206.0 |       |          | $ | (10.4 | )    |   | $ | 195.6 |      
|                                 |                        |                  |       |       |                  |   |       |          |   |       |          |       |  |              |       |       |          |  
|Non amortized intangible assets: |                        |                  |       |       |                  |   |       |          |   |       |          |       |  |              |       |       |          |   |       |      |   |   |       |      
|                                 | Tradenames             |                  | $     | 43.1  |                  |   |       |          |   |       |          |       |  |              | $     | 41.6  |          |   |       |      |   |   |       |       | 
|                                 | Goodwill               |                  | $     | 417.9 |                  |   |       |          |   |       |          |       |  |              | $     | 416.2 |          |   |       |      |   |   |       |       | 





|                                                 |  |            |       |   |            |   |       |  |       |   |   |  |  |   |       |  
|------------------------------------------------ |  | ---------- | ----- | - | ---------- | - | ----- |  | ----- | - | - |  |  | - | ----- | -
|                                                 |  | Automotive |       |   |            |   |       |  |      
|                                                 |  | Wheels     |       |   | Components |   | Other |  | Total |  
|                                                 |  |            |       |   |            |   |       |  |       |  
|Balance as of January 31, 2004                   |  | $          | 416.2 |   |            | $ |      |  |       | $ |  |  |  | $ | 416.2 |  
|Effects of currency translation                  |  |            | 13.1  |   |            |   |      |  |       |   |  |  |  |   | 13.1  |  
|Tax adjustments                                  |  |            | (20.1 | ) |            |   |      |  |       |   |  |  |  |   | (20.1 | )
|Acquisitions and purchase accounting adjustments |  |            | 8.7   |   |            |   |      |  |       |   |  |  |  |   | 8.7   |  
|                                                 |  |            |       |   |            |   |       |  |       |   |   | 
|Balance as of January 31, 2005                   |  | $          | 417.9 |   |            | $ |      |  |       | $ |  |  |  | $ | 417.9 |  
|                                                 |  |            |       |   |            |   |       |  |       |   |   | 







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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












| |                                                                         
| | ------------------------------------------------------------------------
| | Valuation of Intangible Assets as a Result of Fresh Start
    Accounting



Customer Contracts:


Customer Relationships:


Trade Names:


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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Unpatented Technology:




|        |             
|------- | ------------
|Note 9. | Other Assets



|                                |       |             |      |      |             |   |      |      | 
|------------------------------- | ----- | ----------- | ---- | ---- | ----------- | - | ---- | ---- | 
|                                |       | Successor   |     
|                                |       |             |     
|                                |       | January 31, |      |      | January 31, |  
|                                |       | 2005        |      |      | 2004        |  
|                                |       |             |      |      |             |  
|Production tooling              |       | $           | 25.8 |      |             | $ | 31.2 |     
|Unamortized debt issuance costs |       |             | 16.2 |      |             |   | 20.2 |     
|Investments in joint ventures   |       |             | 1.8  |      |             |   |     |     
|Other                           |       |             | 1.4  |      |             |   | 26.2 |     
|                                |       |             |      |      |             |  
|                                | Total |             | $    | 45.2 |             |   | $    | 77.6 | 
|                                |       |             |      |      |             |  



|         |                                         
|-------- | ----------------------------------------
|Note 10. | Accounts Payable and Accrued Liabilities



|                          |       |             |       |       |             |   |       |       | 
|------------------------- | ----- | ----------- | ----- | ----- | ----------- | - | ----- | ----- | 
|                          |       | Successor   |      
|                          |       |             |      
|                          |       | January 31, |       |       | January 31, |  
|                          |       | 2005        |       |       | 2004        |  
|                          |       |             |       |       |             |  
|Accounts payable          |       | $           | 260.1 |       |             | $ | 196.8 |      
|Employee costs            |       |             | 85.5  |       |             |   | 83.7  |      
|Other accrued liabilities |       |             | 59.7  |       |             |   | 75.0  |      
|                          |       |             |       |       |             |  
|                          | Total |             | $     | 405.3 |             |   | $     | 355.5 | 
|                          |       |             |       |       |             |  



|         |                                                
|-------- | -----------------------------------------------
|Note 11. | Bank Borrowings, Other Notes and Long-Term Debt



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                                                       |                |             |       |       |             |   |       |       | 
|------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------- | ----------- | ----- | ----- | ----------- | - | ----- | ----- | 
|                                                                                                                                                       |                | Successor   |      
|                                                                                                                                                       |                |             |      
|                                                                                                                                                       |                | January 31, |       |       | January 31, |  
|                                                                                                                                                       |                | 2005        |       |       | 2004        |  
|                                                                                                                                                       |                |             |       |       |             |  
|Various foreign bank and government loans maturing through 2006,
    weighted average interest rates of 6.4% and 5.7% at
    January 31, 2005 and 2004 |                | $           | 18.6  |       |             | $ | 28.6  |      
|Term Loan maturing 2009, weighted average interest rate of 6.24%
    and 5.0% at January 31, 2005 and January 31, 2004,
    respectively               |                |             | 427.3 |       |             |   | 447.8 |      
|101/2%
    Senior Notes, net of discount of $0.8 and $1.4 million at
    January 31, 2005 and January 31, 2004, respectively,
    due 2010             |                |             | 161.7 |       |             |   | 248.6 |      
|Mortgage note payable                                                                                                                                  |                |             | 22.2  |       |             |   | 22.5  |      
|Capital lease obligations                                                                                                                              |                |             | 11.8  |       |             |   | 16.2  |      
|                                                                                                                                                       |                |             |       |       |             |  
|                                                                                                                                                       |                |             | 641.6 |       |             |   | 763.7 |      
|Less current portion of long-term debt                                                                                                                 |                |             | 10.5  |       |             |   | 11.3  |      
|                                                                                                                                                       |                |             |       |       |             |  
|                                                                                                                                                       | Long-term debt |             | $     | 631.1 |             |   | $     | 752.4 | 
|                                                                                                                                                       |                |             |       |       |             |  

1 2




| |                
| | ---------------
| | Credit Facility





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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |             
| | ------------
| | Senior Notes

1 2 1 2 1 2








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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |                
| | ---------------
| | Other Financing





|         |                                                                  
|-------- | -----------------------------------------------------------------
|Note 12. | Pension Plans and Postretirement Benefits Other Than
    Pensions





|                                                     |                                   |                      |       |       |                     |   |       |                  |  |   |       |       |  |      |       |       |      |   |       |       |  |   |       |       | 
|---------------------------------------------------- | --------------------------------- | -------------------- | ----- | ----- | ------------------- | - | ----- | ---------------- |  | - | ----- | ----- |  | ---- | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                                                     |                                   | North American Plans |       |       | International Plans |  
|                                                     |                                   |                      |       |       |                     |  
|                                                     |                                   | Pension Benefits     |       |       | Other Benefits      |   |       | Pension Benefits | 
|                                                     |                                   | Successor            |       |       | Successor           |   |       | Successor        | 
|                                                     |                                   |                      |       |       |                     |   |       |                  | 
|                                                     |                                   | 2005                 |       |       | 2004                |   |       | 2005             |  |   | 2004  |       |  | 2005 |       |       | 2004 |  
|                                                     |                                   |                      |       |       |                     |   |       |                  |  |   |       |       |  |      |       |       |      |  
|Change in Benefit Obligation:                        |                                   |                      |       |       |                     |   |       |                  |  |   |       |       |  |      |       |       |      |   |       |       |  |   |       |      
|Benefit obligation at beginning of year              |                                   | $                    | 186.8 |       |                     | $ | 183.4 |                  |  | $ | 190.9 |       |  | $    | 186.2 |       |      | $ | 134.6 |       |  | $ | 135.8 |      
|Service cost                                         |                                   |                      |      |       |                     |   | 0.2   |                  |  |   | 0.1   |       |  |      | 0.1   |       |      |   | 0.8   |       |  |   | 0.6   |      
|Interest cost                                        |                                   |                      | 11.2  |       |                     |   | 11.2  |                  |  |   | 10.7  |       |  |      | 11.8  |       |      |   | 7.1   |       |  |   | 7.2   |      
|Amendments                                           |                                   |                      |      |       |                     |   | (0.6  | )                |  |   |      |       |  |      |      |       |      |   |      |       |  |   |      |      
|Transfers to defined contribution plan               |                                   |                      |      |       |                     |   |      |                  |  |   |      |       |  |      |      |       |      |   |      |       |  |   | (3.6  | )    
|Discharge of obligation under Plan of Reorganization |                                   |                      |      |       |                     |   | (6.8  | )                |  |   |      |       |  |      |      |       |      |   |      |       |  |   |      |      
|Actuarial loss (gain)                                |                                   |                      | 13.0  |       |                     |   | 14.1  |                  |  |   | 7.8   |       |  |      | 6.1   |       |      |   | 4.3   |       |  |   | (1.8  | )    
|Benefits paid                                        |                                   |                      | (17.2 | )     |                     |   | (14.7 | )                |  |   | (17.7 | )     |  |      | (13.3 | )     |      |   | (8.6  | )     |  |   | (9.1  | )    
|                                                     |                                   |                      |       |       |                     |   |       |                  |  |   |       |       |  |      |       |       |      |  
|                                                     | Benefit obligation at end of year |                      | $     | 193.8 |                     |   | $     | 186.8            |  |   | $     | 191.8 |  |      | $     | 190.9 |      |   | $     | 138.2 |  |   | $     | 129.1 | 
|                                                     |                                   |                      |       |       |                     |   |       |                  |  |   |       |       |  |      |       |       |      |  

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                     |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |   |        |        |   |   |        |        |  
|---------------------------------------------------- | ---------------------------------------- | -------------------- | ----- | ----- | ------------------- | - | ----- | ---------------- | - | - | ------ | ------ | - | ---- | ------ | ------ | ---- | - | ------ | ------ | - | - | ------ | ------ | -
|                                                     |                                          | North American Plans |       |       | International Plans |  
|                                                     |                                          |                      |       |       |                     |  
|                                                     |                                          | Pension Benefits     |       |       | Other Benefits      |   |       | Pension Benefits |  
|                                                     |                                          | Successor            |       |       | Successor           |   |       | Successor        |  
|                                                     |                                          |                      |       |       |                     |   |       |                  |  
|                                                     |                                          | 2005                 |       |       | 2004                |   |       | 2005             |   |   | 2004   |        |   | 2005 |        |        | 2004 |  
|                                                     |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |  
|Change in Plan Assets:                               |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |   |        |        |   |   |        |       
|Fair value of plan assets at beginning of year       |                                          | $                    | 127.0 |       |                     | $ | 121.3 |                  |   | $ |       |        |   | $    |       |        |      | $ | 8.4    |        |   | $ | 3.3    |       
|Actual return on plan assets                         |                                          |                      | 9.6   |       |                     |   | 16.6  |                  |   |   |       |        |   |      |       |        |      |   | (2.0   | )      |   |   | (0.7   | )     
|Company contributions                                |                                          |                      | 5.0   |       |                     |   | 4.0   |                  |   |   |       |        |   |      |       |        |      |   | 0.4    |        |   |   | 5.0    |       
|Benefits paid and plan expenses                      |                                          |                      | (18.3 | )     |                     |   | (14.9 | )                |   |   |       |        |   |      |       |        |      |   | (0.1   | )      |   |   |       |       
|                                                     |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |  
|                                                     | Fair value of plan assets at end of year |                      | $     | 123.3 |                     |   | $     | 127.0            |   |   | $      |       |   |      | $      |       |      |   | $      | 6.7    |   |   | $      | 7.6    |  
|                                                     |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |  
|Funded Status:                                       |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |   |        |        |   |   |        |       
|Funded status of plan                                |                                          | $                    | (70.5 | )     |                     | $ | (59.8 | )                |   | $ | (191.8 | )      |   | $    | (190.9 | )      |      | $ | (131.5 | )      |   | $ | (121.5 | )     
|Unrecognized net actuarial (gain) loss               |                                          |                      | (3.9  | )     |                     |   | (17.8 | )                |   |   | (12.4  | )      |   |      | (21.5  | )      |      |   | 2.8    |        |   |   | (2.6   | )     
|Adjustment to recognize additional minimum liability |                                          |                      |      |       |                     |   |      |                  |   |   |       |        |   |      |       |        |      |   | (3.6   | )      |   |   |       |       
|Employer contributions                               |                                          |                      | 1.3   |       |                     |   |      |                  |   |   | 4.3    |        |   |      | 4.9    |        |      |   |       |        |   |   |       |       
|                                                     |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |  
|                                                     | Accrued benefit cost                     |                      | $     | (73.1 | )                   |   | $     | (77.6            | ) |   | $      | (199.9 | ) |      | $      | (207.5 | )    |   | $      | (132.3 | ) |   | $      | (124.1 | )
|Amount recognized in Consolidated Balance Sheet:     |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |   |        |        |   |   |        |       
|Prepaid benefit cost                                 |                                          | $                    |      |       |                     | $ |      |                  |   | $ |       |        |   | $    |       |        |      | $ | 1.5    |        |   | $ |       |       
|Accrued benefit cost                                 |                                          |                      | (73.1 | )     |                     |   | (77.6 | )                |   |   | (199.9 | )      |   |      | (207.5 | )      |      |   | (130.8 | )      |   |   | (124.1 | )     
|Accumulated other comprehensive loss                 |                                          |                      |      |       |                     |   |      |                  |   |   |       |        |   |      |       |        |      |   | 3.6    |        |   |   |       |       
|                                                     |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |  
|                                                     | Net amount recognized                    |                      | $     | (73.1 | )                   |   | $     | (77.6            | ) |   | $      | (199.9 | ) |      | $      | (207.5 | )    |   | $      | (125.7 | ) |   | $      | (124.1 | )
|                                                     |                                          |                      |       |       |                     |   |       |                  |   |   |        |        |   |      |        |        |      |  



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                  |                  |                      |      |       |                |   |      |           |  |   |             |     |  |             |       |     |             |   |      |         |  |   |             |     |  |   |     |     |  |   |      |      | 
|------------------------------------------------- | ---------------- | -------------------- | ---- | ----- | -------------- | - | ---- | --------- |  | - | ----------- | --- |  | ----------- | ----- | --- | ----------- | - | ---- | ------- |  | - | ----------- | --- |  | - | --- | --- |  | - | ---- | ---- | 
|                                                  |                  | North American Plans |     
|                                                  |                  |                      |     
|                                                  |                  | Pension Benefits     |      |       | Other Benefits |  
|                                                  |                  |                      |      |       |                |  
|                                                  |                  | Successor            |      |       | Predecessor    |   |      | Successor |  |   | Predecessor |    
|                                                  |                  |                      |      |       |                |   |      |           |  |   |             |    
|                                                  |                  |                      |      | Eight |                |   | Four |           |  |   |             |     |  | Eight       |       |     | Four        |   |      |        
|                                                  |                  | Year                 |      |       | Months         |   |      | Months    |  |   | Year        |     |  | Year        |       |     | Months      |   |      | Months  |  |   | Year        |    
|                                                  |                  | Ended                |      |       | Ended          |   |      | Ended     |  |   | Ended       |     |  | Ended       |       |     | Ended       |   |      | Ended   |  |   | Ended       |    
|                                                  |                  | January 31,          |      |       | January 31,    |   |      | May 31,   |  |   | January 31, |     |  | January 31, |       |     | January 31, |   |      | May 31, |  |   | January 31, |    
|                                                  |                  | 2005                 |      |       | 2004           |   |      | 2003      |  |   | 2003        |     |  | 2005        |       |     | 2004        |   |      | 2003    |  |   | 2003        |    
|                                                  |                  |                      |      |       |                |   |      |           |  |   |             |     |  |             |       |     |             |   |      |         |  |   |             |    
|Components of net periodic benefit cost (income): |                  |                      |      |       |                |   |      |           |  |   |             |     |  |             |       |     |             |   |      |         |  |   |             |     |  |   |     |     |  |   |      |     
|Service cost                                      |                  | $                    | 0.2  |       |                | $ | 0.3  |           |  | $ | 0.1         |     |  | $           | 0.5   |     |             | $ | 0.1  |         |  | $ | 0.1         |     |  | $ |    |     |  | $ | 0.2  |     
|Interest cost                                     |                  |                      | 11.2 |       |                |   | 7.4  |           |  |   | 3.8         |     |  |             | 11.7  |     |             |   | 10.7 |         |  |   | 7.8         |     |  |   | 4.0 |     |  |   | 10.0 |     
|Expected return on plan assets                    |                  |                      | (9.6 | )     |                |   | (6.0 | )         |  |   | (3.0        | )   |  |             | (12.0 | )   |             |   |     |         |  |   |            |     |  |   |    |     |  |   |     |     
|Net amortization and deferral                     |                  |                      |     |       |                |   |     |           |  |   | 1.0         |     |  |             | 1.3   |     |             |   | (1.2 | )       |  |   |            |     |  |   | 2.1 |     |  |   | 3.6  |     
|Special termination benefit recognition           |                  |                      |     |       |                |   |     |           |  |   |            |     |  |             | 2.4   |     |             |   |     |         |  |   |            |     |  |   |    |     |  |   | 1.0  |     
|                                                  |                  |                      |      |       |                |   |      |           |  |   |             |     |  |             |       |     |             |   |      |         |  |   |             |    
|                                                  | Net benefit cost |                      | $    | 1.8   |                |   | $    | 1.7       |  |   | $           | 1.9 |  |             | $     | 3.9 |             |   | $    | 9.6     |  |   | $           | 7.9 |  |   | $   | 6.1 |  |   | $    | 14.8 | 
|                                                  |                  |                      |      |       |                |   |      |           |  |   |             |     |  |             |       |     |             |   |      |         |  |   |             |    

|                                                  |                  |                     |      |       |             |   |      |         |  |   |             |     |  |   |      |     | 
|------------------------------------------------- | ---------------- | ------------------- | ---- | ----- | ----------- | - | ---- | ------- |  | - | ----------- | --- |  | - | ---- | --- | 
|                                                  |                  | International Plans |     
|                                                  |                  | Pension Benefits    |     
|                                                  |                  |                     |     
|                                                  |                  | Successor           |      |       | Predecessor |  
|                                                  |                  |                     |      |       |             |  
|                                                  |                  |                     |      | Eight |             |   | Four |         |  |  
|                                                  |                  | Year                |      |       | Months      |   |      | Months  |  |   | Year        |    
|                                                  |                  | Ended               |      |       | Ended       |   |      | Ended   |  |   | Ended       |    
|                                                  |                  | January 31,         |      |       | January 31, |   |      | May 31, |  |   | January 31, |    
|                                                  |                  | 2005                |      |       | 2004        |   |      | 2003    |  |   | 2003        |    
|                                                  |                  |                     |      |       |             |   |      |         |  |   |             |    
|Components of net periodic benefit cost (income): |                  |                     |      |       |             |   |      |         |  |   |             |     |  |   |      |    
|Service cost                                      |                  | $                   | 0.7  |       |             | $ | 0.2  |         |  | $ | 0.1         |     |  | $ | 0.5  |    
|Interest cost                                     |                  |                     | 6.8  |       |             |   | 4.5  |         |  |   | 2.2         |     |  |   | 6.0  |    
|Expected return on plan assets                    |                  |                     | (2.1 | )     |             |   | (0.1 | )       |  |   | (0.1        | )   |  |   | (0.1 | )  
|Net amortization and deferral                     |                  |                     |     |       |             |   |     |         |  |   | 0.2         |     |  |   | 0.3  |    
|                                                  |                  |                     |      |       |             |   |      |         |  |   |             |    
|                                                  | Net benefit cost |                     | $    | 5.4   |             |   | $    | 4.6     |  |   | $           | 2.4 |  |   | $    | 6.7 | 
|                                                  |                  |                     |      |       |             |   |      |         |  |   |             |    



|                               |  |                      |      |        |                |         |      |           |  |               |      |   |  |      |      |   |      |  |      |   |  |  |      |  
|------------------------------ |  | -------------------- | ---- | ------ | -------------- | ------- | ---- | --------- |  | ------------- | ---- | - |  | ---- | ---- | - | ---- |  | ---- | - |  |  | ---- | -
|                               |  |                      |      |        |                |         |      |           |  | International |     
|                               |  |                      |      | Plants |               
|                               |  | North American Plans |      |        |                |        
|                               |  |                      |      |        |               
|                               |  |                      |      |        |                | Pension |     
|                               |  | Pension Benefits     |      |        | Other Benefits |         |      | Benefits  | 
|                               |  | Successor            |      |        | Successor      |         |      | Successor | 
|                               |  |                      |      |        |                |         |      |           | 
|                               |  | 2005                 |      |        | 2004           |         |      | 2005      |  |               | 2004 |   |  | 2005 |      |   | 2004 | 
|                               |  |                      |      |        |                |         |      |           |  |               |      |   |  |      |      |   |      | 
|Weighted average assumptions:  |  |                      |      |        |                |         |      |           |  |               |      |   |  |      |      |   |      |  |      |   |  |  |      |  
|Discount rate                  |  |                      | 5.75 | %      |                |         | 6.25 | %         |  |               | 5.75 | % |  |      | 6.25 | % |      |  | 5.00 | % |  |  | 5.50 | %
|Expected return on plan assets |  |                      | 8.00 | %      |                |         | 8.00 | %         |  |               | N/A  |   |  |      | N/A  |   |      |  | 5.00 | % |  |  | 5.00 | %
|Rate of compensation increase  |  |                      | N/A  |        |                |         | N/A  |           |  |               | N/A  |   |  |      | N/A  |   |      |  | 2.10 | % |  |  | 2.10 | %



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                          
| | -------------------------
| | Expected Return on Assets





| |                                          
| | -----------------------------------------
| | Projected North American Benefit Payments



|                                             |  |           |      |  |      |   |      |      |  |   |      |  |  |      |      |  |       |   |      |  |  |   |      | 
|-------------------------------------------- |  | --------- | ---- |  | ---- | - | ---- | ---- |  | - | ---- |  |  | ---- | ---- |  | ----- | - | ---- |  |  | - | ---- | 
|                                             |  | Successor |     
|                                             |  |           |     
|                                             |  | 2005      |      |  | 2006 |   |      | 2007 |  |   | 2008 |  |  | 2009 |      |  | Total |  
|                                             |  |           |      |  |      |   |      |      |  |   |      |  |  |      |      |  |       |  
|Pension plans                                |  | $         | 14.5 |  |      | $ | 14.0 |      |  | $ | 13.7 |  |  | $    | 13.5 |  |       | $ | 13.3 |  |  | $ | 69.0 | 
|Health care and life insurance benefit plans |  |           | 14.9 |  |      |   | 13.9 |      |  |   | 14.4 |  |  |      | 14.9 |  |       |   | 15.2 |  |  |   | 73.3 | 



| |                                  
| | ---------------------------------
| | Pension Benefit Asset Information



|                               |       |           |      |     |      |  |      |     |  
|------------------------------ | ----- | --------- | ---- | --- | ---- |  | ---- | --- | -
|                               |       | Successor |     
|                               |       |           |     
|                               |       | 2004      |      |     | 2003 | 
|                               |       |           |      |     |      | 
|Asset Category:                |       |           |      |     |      |  |      |    
|Domestic Equity                |       |           | 55.0 | %   |      |  | 52.5 | %  
|International Equity           |       |           | 15.4 | %   |      |  | 15.7 | %  
|Fixed Income                   |       |           | 22.9 | %   |      |  | 31.8 | %  
|Guaranteed Investment Contract |       |           | 1.7  | %   |      |  |     |    
|Cash                           |       |           | 5.0  | %   |      |  |     |    
|                               |       |           |      |     |      | 
|                               | Total |           |      | 100 | %    |  |      | 100 | %
|                               |       |           |      |     |      | 





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Fixed income investments are oriented toward risk averse,
    investment grade securities. With the exception of
    U.S. Government securities, in which the plan may invest
    the entire fixed income allocation, fixed income investments are
    required to be diversified among individual securities and
    sectors. There is no limit on the maximum maturity of securities
    held. Short sales, margin purchases and similar speculative
    transactions are prohibited.
|
| |  | Equity investments are diversified among capitalization and
    style and are required to be diversified among industries and
    economic sectors. Limitations are placed on the overall
    allocation to any individual security. Short sales, margin
    purchases, and similar speculative transactions are prohibited.                                                                                                                                                           



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                     |  |               |      |   |              |  |       |  
|-------------------- |  | ------------- | ---- | - | ------------ |  | ----- | -
|                     |  | Policy Target |      |   | Policy Range | 
|                     |  |               |      |   |              | 
|Asset Class:         |  |               |      |   |              |  |       |  
|Domestic Equity      |  |               | 55.0 | % |              |  | 35-75 | %
|International Equity |  |               | 15.4 | % |              |  | 10-20 | %
|Fixed Income         |  |               | 24.6 | % |              |  | 25-35 | %
|Real Estate          |  |               | 0.0  | % |              |  | 0-0   | %
|Other                |  |               | 5.0  | % |              |  | 0-0   | %





| |                                                                   
| | ------------------------------------------------------------------
| | Medicare Prescription Drug, Improvement, and Modernization
    Act





| |               
| | --------------
| | Other Benefits





|         |                                                  
|-------- | -------------------------------------------------
|Note 13. | Asset Impairments and Other Restructuring Charges



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                |       |                             |     |     |            |   |      |       |  |   |       |     |  |   |     |     | 
|----------------------------------------------- | ----- | --------------------------- | --- | --- | ---------- | - | ---- | ----- |  | - | ----- | --- |  | - | --- | --- | 
|                                                |       | Successor                   |    
|                                                |       | Year Ended January 31, 2005 |    
|                                                |       |                             |    
|                                                |       | Automotive                  |     |     |           
|                                                |       | Wheels                      |     |     | Components |   |      | Other |  |   | Total |    
|                                                |       |                             |     |     |            |   |      |       |  |   |       |    
|Facility closure costs                          |       | $                           | 4.8 |     |            | $ | (0.2 | )     |  | $ |      |     |  | $ | 4.6 |    
|Impairment of machinery, equipment, and tooling |       |                             | 2.2 |     |            |   |     |       |  |   |      |     |  |   | 2.2 |    
|Severance and other restructuring costs         |       |                             | 1.4 |     |            |   | 0.6  |       |  |   | 0.5   |     |  |   | 2.5 |    
|                                                |       |                             |     |     |            |   |      |       |  |   |       |    
|                                                | Total |                             | $   | 8.4 |            |   | $    | 0.4   |  |   | $     | 0.5 |  |   | $   | 9.3 | 
|                                                |       |                             |     |     |            |   |      |       |  |   |       |    

|                                                |       |                                     |      |      |            |   |     |       |  |       |   |   |  |   |      |      | 
|----------------------------------------------- | ----- | ----------------------------------- | ---- | ---- | ---------- | - | --- | ----- |  | ----- | - | - |  | - | ---- | ---- | 
|                                                |       | Successor                           |     
|                                                |       | Eight Months Ended January 31, 2004 |     
|                                                |       |                                     |     
|                                                |       | Automotive                          |      |      |           
|                                                |       | Wheels                              |      |      | Components |   |     | Other |  | Total |  
|                                                |       |                                     |      |      |            |   |     |       |  |       |  
|Impairment of manufacturing facilities          |       | $                                   | 1.0  |      |            | $ | 0.8 |       |  | $     |  |   |  | $ | 1.8  |     
|Impairment of machinery, equipment, and tooling |       |                                     | 19.9 |      |            |   | 6.7 |       |  |       |  |   |  |   | 26.6 |     
|Severance and other restructuring costs         |       |                                     | 0.5  |      |            |   |    |       |  |       |  |   |  |   | 0.5  |     
|                                                |       |                                     |      |      |            |   |     |       |  |       |   |  
|                                                | Total |                                     | $    | 21.4 |            |   | $   | 7.5   |  |       | $ |  |  |   | $    | 28.9 | 
|                                                |       |                                     |      |      |            |   |     |       |  |       |   |  

|                                                |       |                                |     |     |            |   |     |       |  |       |   |   |  |   |     |     | 
|----------------------------------------------- | ----- | ------------------------------ | --- | --- | ---------- | - | --- | ----- |  | ----- | - | - |  | - | --- | --- | 
|                                                |       | Predecessor                    |    
|                                                |       | Four Months Ended May 31, 2003 |    
|                                                |       |                                |    
|                                                |       | Automotive                     |     |     |           
|                                                |       | Wheels                         |     |     | Components |   |     | Other |  | Total |  
|                                                |       |                                |     |     |            |   |     |       |  |       |  
|Impairment of manufacturing facilities          |       | $                              | 0.5 |     |            | $ | 0.1 |       |  | $     |  |   |  | $ | 0.6 |    
|Facility closure costs                          |       |                                | 0.9 |     |            |   |    |       |  |       |  |   |  |   | 0.9 |    
|Impairment of machinery, equipment, and tooling |       |                                | 1.5 |     |            |   | 3.3 |       |  |       |  |   |  |   | 4.8 |    
|Severance and other restructuring costs         |       |                                | 0.1 |     |            |   |    |       |  |       |  |   |  |   | 0.1 |    
|                                                |       |                                |     |     |            |   |     |       |  |       |   |  
|                                                | Total |                                | $   | 3.0 |            |   | $   | 3.4   |  |       | $ |  |  |   | $   | 6.4 | 
|                                                |       |                                |     |     |            |   |     |       |  |       |   |  

|                                                |       |                             |      |      |            |   |     |       |  |   |       |     |  |   |      |      | 
|----------------------------------------------- | ----- | --------------------------- | ---- | ---- | ---------- | - | --- | ----- |  | - | ----- | --- |  | - | ---- | ---- | 
|                                                |       | Predecessor                 |     
|                                                |       | Year Ended January 31, 2003 |     
|                                                |       |                             |     
|                                                |       | Automotive                  |      |      |           
|                                                |       | Wheels                      |      |      | Components |   |     | Other |  |   | Total |    
|                                                |       |                             |      |      |            |   |     |       |  |   |       |    
|Impairment of manufacturing facilities          |       |                             | 1.7  |      |            | $ | 0.8 |       |  | $ |      |     |  | $ | 2.5  |     
|Facility closure costs                          |       |                             | 6.7  |      |            |   |    |       |  |   |      |     |  |   | 6.7  |     
|Impairment of machinery, equipment, and tooling |       |                             | 25.1 |      |            |   | 0.8 |       |  |   | 0.5   |     |  |   | 26.4 |     
|Severance and other restructuring costs         |       |                             | 2.9  |      |            |   | 1.0 |       |  |   | 4.0   |     |  |   | 7.9  |     
|                                                |       |                             |      |      |            |   |     |       |  |   |       |    
|                                                | Total |                             | $    | 36.4 |            |   | $   | 2.6   |  |   | $     | 4.5 |  |   | $    | 43.5 | 
|                                                |       |                             |      |      |            |   |     |       |  |   |       |    



Impairment of Howell, Michigan Facility:


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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Impairment of La Mirada, California Facility:




Impairment of Gainesville, Georgia and Wabash, Indiana
Facilities:


Impairment of Thailand Greenfield Site:


Impairment and Closure of Bowling Green, Kentucky
Facility:


Impairment and Closure of Petersburg, Michigan Facility:




Impairment and Closure of Somerset, Kentucky Facility:


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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Impairment of Machinery and Equipment:










Impairment of White Pigeon, Michigan Facility:


Other Severance and Restructuring Costs:


North American Early Retirement and Reduction-In-Force
Programs:


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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Facility Exit Cost and Severance Accruals:


|                    |  |             |     |           |               |   |     |                  |  |               |                 |   |             |         |      |   |  |   |     | 
|------------------- |  | ----------- | --- | --------- | ------------- | - | --- | ---------------- |  | ------------- | --------------- | - | ----------- | ------- | ---- | - |  | - | --- | 
|                    |  | Successor   |    
|                    |  |             |    
|                    |  |             |     | Severance |               |   |    
|                    |  | January 31, |     |           | and Other     |   |     |                  |  | Cash Payments |                 |   | January 31, |        
|                    |  | 2004        |     |           | Restructuring |   |     |                  |  | and Foreign   |                 |   | 2005        |        
|                    |  | Accrual     |     |           | Charges       |   |     | Reclassification |  |               | Currency Impact |   |             | Accrual |     
|                    |  |             |     |           |               |   |     |                  |  |               |                 |   |             |         |     
|Facility exit costs |  | $           | 1.7 |           |               | $ | 2.1 |                  |  | $             | (0.3            | ) |             | $       | (3.5 | ) |  | $ |    | 
|Severance           |  |             | 1.0 |           |               |   | 5.8 |                  |  |               |                |   |             |         | (6.3 | ) |  |   | 0.5 | 
|                    |  |             |     |           |               |   |     |                  |  |               |                 |   |             |         |     
|                    |  | $           | 2.7 |           |               | $ | 7.9 |                  |  | $             | (0.3            | ) |             | $       | (9.8 | ) |  | $ | 0.5 | 
|                    |  |             |     |           |               |   |     |                  |  |               |                 |   |             |         |     



|         |                              
|-------- | -----------------------------
|Note 14. | Commitments and Contingencies



| |                                                           
| | ----------------------------------------------------------
| | Matters Related to Restatement of Financial
    Statements







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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                  
| | -----------------
| | Legal Proceedings











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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |       
| | ------
| | Leases



|                                                              |                                                                  |           |      |      |           |   |      |      | 
|------------------------------------------------------------- | ---------------------------------------------------------------- | --------- | ---- | ---- | --------- | - | ---- | ---- | 
|                                                              |                                                                  | Successor |     
|                                                              |                                                                  |           |     
|Year Ending January 31:                                       |                                                                  | Capital   |      |      | Operating |  
|                                                              |                                                                  |           |      |      |           |  
|2006                                                          |                                                                  | $         | 4.3  |      |           | $ | 14.5 |     
|2007                                                          |                                                                  |           | 1.6  |      |           |   | 11.2 |     
|2008                                                          |                                                                  |           | 1.4  |      |           |   | 6.4  |     
|2009                                                          |                                                                  |           | 4.9  |      |           |   | 5.1  |     
|2010 and later years                                          |                                                                  |           |     |      |           |   | 0.3  |     
|                                                              |                                                                  |           |      |      |           |  
|                                                              | Total minimum payments required                                  |           |      | 12.2 |           |   | $    | 37.5 | 
|                                                              |                                                                  |           |      |      |           |  
|Less amount representing interest                             |                                                                  |           | (0.4 | )    |           |   |      |     
|                                                              |                                                                  |           |      |      |           |  
|                                                              | Present value of net minimum capital lease payments              |           |      | 11.8 |           |   |      |      | 
|Less current installments of obligations under capital leases |                                                                  |           | (4.3 | )    |           |   |      |     
|                                                              |                                                                  |           |      |      |           |  
|                                                              | Obligations under capital leases, excluding current installments |           | $    | 7.5  |           |   |      |      | 
|                                                              |                                                                  |           |      |      |           |  





|         |                
|-------- | ---------------
|Note 15. | Taxes on Income



|              |  |             |        |       |             |   |       |         |  |   |             |   |  |   |        |  
|------------- |  | ----------- | ------ | ----- | ----------- | - | ----- | ------- |  | - | ----------- | - |  | - | ------ | -
|              |  | Successor   |        |       | Predecessor |  
|              |  |             |        |       |             |  
|              |  |             |        | Eight |             |   | Four  |         |  |  
|              |  | Year        |        |       | Months      |   |       | Months  |  |   | Year        |  
|              |  | Ended       |        |       | Ended       |   |       | Ended   |  |   | Ended       |  
|              |  | January 31, |        |       | January 31, |   |       | May 31, |  |   | January 31, |  
|              |  | 2005        |        |       | 2004        |   |       | 2003    |  |   | 2003        |  
|              |  |             |        |       |             |   |       |         |  |   |             |  
|United States |  | $           | (103.0 | )     |             | $ | (67.1 | )       |  | $ | (309.9      | ) |  | $ | (137.1 | )
|Foreign       |  |             | 66.9   |       |             |   | 35.4  |         |  |   | 337.7       |   |  |   | 64.1   |  
|              |  |             |        |       |             |   |       |         |  |   |             |  
|              |  | $           | (36.1  | )     |             | $ | (31.7 | )       |  | $ | 27.8        |   |  | $ | (73.0  | )
|              |  |             |        |       |             |   |       |         |  |   |             |  

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|          |                   |                    |      |       |             |  |      |         |      |  |             |      |      |  |       |       |     | 
|--------- | ----------------- | ------------------ | ---- | ----- | ----------- |  | ---- | ------- | ---- |  | ----------- | ---- | ---- |  | ----- | ----- | --- | 
|          |                   | Successor          |      |       | Predecessor | 
|          |                   |                    |      |       |             | 
|          |                   |                    |      | Eight |             |  | Four |         |      | 
|          |                   | Year               |      |       | Months      |  |      | Months  |      |  | Year        |     
|          |                   | Ended              |      |       | Ended       |  |      | Ended   |      |  | Ended       |     
|          |                   | January 31,        |      |       | January 31, |  |      | May 31, |      |  | January 31, |     
|          |                   | 2005               |      |       | 2004        |  |      | 2003    |      |  | 2003        |     
|          |                   |                    |      |       |             |  |      |         |      |  |             |     
|Current:  |                   |                    |      |       |             |  |      |         |      |  |             |      |      |  |       |      
|          | Federal           |                    | $    |      |             |  | $    |        |      |  | $           |     |      |  | $     | (14.3 | )  
|          | State and Local   |                    |      | 2.3   |             |  |      | 1.0     |      |  |             | 7.1  |      |  |       | 2.4   |    
|          | Foreign           |                    |      | 25.4  |             |  |      | 11.6    |      |  |             | 1.9  |      |  |       | 1.1   |    
|          |                   |                    |      |       |             |  |      |         |      |  |             |     
|          |                   |                    | 27.7 |       |             |  | 12.6 |         |      |  | 9.0         |      |      |  | (10.8 | )    
|Deferred: |                   |                    |      |       |             |  |      |         |      |  |             |      |      |  |       |      
|          | Federal and State |                    |      |      |             |  |      |        |      |  |             |     |      |  |       |      |    
|          | Foreign           |                    |      | (8.0  | )           |  |      | (1.7    | )    |  |             | 51.3 |      |  |       | 14.4  |    
|          |                   |                    |      |       |             |  |      |         |      |  |             |     
|          |                   |                    | (8.0 | )     |             |  | (1.7 | )       |      |  | 51.3        |      |      |  | 14.4  |      
|          |                   |                    |      |       |             |  |      |         |      |  |             |     
|          |                   | Income Tax Expense |      | $     | 19.7        |  |      | $       | 10.9 |  |             | $    | 60.3 |  |       | $     | 3.6 | 
|          |                   |                    |      |       |             |  |      |         |      |  |             |     



|                                         |                                                   |             |       |       |             |   |       |         |   |   |             |       |   |   |       |       |  
|---------------------------------------- | ------------------------------------------------- | ----------- | ----- | ----- | ----------- | - | ----- | ------- | - | - | ----------- | ----- | - | - | ----- | ----- | -
|                                         |                                                   | Successor   |       |       | Predecessor |  
|                                         |                                                   |             |       |       |             |  
|                                         |                                                   |             |       | Eight |             |   | Four  |         |   |  
|                                         |                                                   | Year        |       |       | Months      |   |       | Months  |   |   | Year        |      
|                                         |                                                   | Ended       |       |       | Ended       |   |       | Ended   |   |   | Ended       |      
|                                         |                                                   | January 31, |       |       | January 31, |   |       | May 31, |   |   | January 31, |      
|                                         |                                                   | 2005        |       |       | 2004        |   |       | 2003    |   |   | 2003        |      
|                                         |                                                   |             |       |       |             |   |       |         |   |   |             |      
|Federal taxes computed at statutory rate |                                                   | $           | (12.6 | )     |             | $ | (11.1 | )       |   | $ | 9.7         |       |   | $ | (25.6 | )    
|Increase (decrease) resulting from:      |                                                   |             |       |       |             |   |       |         |   |   |             |       |   |   |       |      
|                                         | State taxes                                       |             |       | 1.5   |             |   |       | 1.0     |   |   |             | 7.1   |   |   |       | 2.4   |  
|                                         | Tax benefit from net operating loss carryforwards |             |       |      |             |   |       |        |   |   |             |      |   |   |       | (14.3 | )
|                                         | Non-deductible expenses                           |             |       | 2.6   |             |   |       | 1.2     |   |   |             |      |   |   |       |      |  
|                                         | Foreign statutory tax rate differential           |             |       | (7.0  | )           |   |       | (1.9    | ) |   |             | 2.5   |   |   |       | (0.9  | )
|                                         | Change in foreign tax rates                       |             |       | (0.6  | )           |   |       | (2.6    | ) |   |             |      |   |   |       | 1.9   |  
|                                         | Tax holidays                                      |             |       | (5.1  | )           |   |       | (2.2    | ) |   |             | (0.8  | ) |   |       | (2.8  | )
|                                         | Deductible reorganization expenses                |             |       |      |             |   |       |        |   |   |             | (21.6 | ) |   |       | (26.0 | )
|                                         | Intercompany financing                            |             |       | (4.3  | )           |   |       | (1.4    | ) |   |             |      |   |   |       |      |  
|                                         | Recognition of goodwill in fresh start accounting |             |       |      |             |   |       |        |   |   |             | (67.4 | ) |   |       |      |  
|                                         | Tax exempt income                                 |             |       | (2.8  | )           |   |       |        |   |   |             |      |   |   |       |      |  
|                                         | Parent taxation of subsidiary earnings            |             |       | 2.3   |             |   |       |        |   |   |             | 87.5  |   |   |       |      |  
|                                         | Change in valuation allowance                     |             |       | 46.1  |             |   |       | 27.1    |   |   |             | 43.4  |   |   |       | 71.5  |  
|                                         | All other items                                   |             |       | (0.4  | )           |   |       | 0.8     |   |   |             | (0.1  | ) |   |       | (2.6  | )
|                                         |                                                   |             |       |       |             |   |       |         |   |   |             |      
|Income tax expense                       |                                                   | $           | 19.7  |       |             | $ | 10.9  |         |   | $ | 60.3        |       |   | $ | 3.6   |      
|                                         |                                                   |             |       |       |             |   |       |         |   |   |             |      

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                          |                                |                                      |   |        |             |   |   |       |        |  
|----------------------------------------- | ------------------------------ | ------------------------------------ | - | ------ | ----------- | - | - | ----- | ------ | -
|                                          |                                | Successor                            |  
|                                          |                                |                                      |  
|                                          |                                | January 31,                          |   |        | January 31, |  
|                                          |                                | 2005                                 |   |        | 2004        |  
|                                          |                                |                                      |   |        |             |  
|Deferred tax assets attributable to:      |                                |                                      |   |        |             |   |   |      
|                                          | Accrued liabilities            |                                      | $ | 32.9   |             |   | $ | 20.1  |       
|                                          | Operating loss carry forwards  |                                      |   | 90.1   |             |   |   | 32.5  |       
|                                          | Property, plant, and equipment |                                      |   | 10.7   |             |   |   | 21.2  |       
|                                          | Pension                        |                                      |   | 43.9   |             |   |   | 45.1  |       
|                                          | Inventories                    |                                      |   | 5.1    |             |   |   | 0.7   |       
|                                          | Other                          |                                      |   | 6.9    |             |   |   | 3.8   |       
|                                          |                                |                                      |   |        |             |  
|                                          |                                | Total gross deferred tax assets      |   |        | 189.6       |   |   |       | 123.4  |  
|                                          | Less valuation allowance       |                                      |   | (107.9 | )           |   |   | (57.5 | )     
|                                          |                                |                                      |   |        |             |  
|                                          |                                | Net deferred tax assets              |   |        | 81.7        |   |   |       | 65.9   |  
|Deferred tax liabilities attributable to: |                                |                                      |   |        |             |   |   |      
|                                          | Property, plant, and equipment |                                      |   | (53.2  | )           |   |   | (59.4 | )     
|                                          | Intangible assets              |                                      |   | (76.9  | )           |   |   | (80.8 | )     
|                                          | Intercompany notes             |                                      |   | (16.3  | )           |   |   | (11.1 | )     
|                                          | Other                          |                                      |   | (4.4   | )           |   |   | (2.5  | )     
|                                          |                                |                                      |   |        |             |  
|                                          |                                | Total gross deferred tax liabilities |   |        | (150.8      | ) |   |       | (153.8 | )
|                                          |                                |                                      |   |        |             |  
|                                          |                                | Net deferred tax liabilities         |   | $      | (69.1       | ) |   | $     | (87.9  | )
|                                          |                                |                                      |   |        |             |  





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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|         |                              
|-------- | -----------------------------
|Note 16. | Investments in Joint Ventures









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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|         |                          
|-------- | -------------------------
|Note 17. | Stock Based Benefit Plans















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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                |                  |           |           |           |                |   |       |       | 
|------------------------------- | ---------------- | --------- | --------- | --------- | -------------- | - | ----- | ----- | 
|                                |                  |           |           | Weighted  |               
|                                |                  | Number of |           |           | Average        |  
|                                |                  | Shares    |           |           | Exercise Price |  
|                                |                  |           |           |           |                |  
|Outstanding at January 31, 2003 |                  |           |          |           |                | $ |      |      
|                                | Granted          |           |           | 1,982,906 |                |   |       | 13.97 | 
|                                | Exercised        |           |           |          |                |   |       |      | 
|                                | Forfeited        |           |           | (114,141  | )              |   |       | 13.93 | 
|                                |                  |           |           |           |                |  
|Outstanding at January 31, 2004 |                  |           | 1,868,765 |           |                | $ | 13.98 |      
|                                | Granted          |           |           | 146,411   |                |   |       | 13.06 | 
|                                | Exercised        |           |           |          |                |   |       |      | 
|                                | Forfeited        |           |           | (154,995  | )              |   |       | 13.91 | 
|                                |                  |           |           |           |                |  
|Outstanding at January 31, 2005 |                  |           | 1,860,181 |           |                | $ | 13.91 |      
|Balance exercisable at:         |                  |           |           |           |                |   |       |      
|                                | January 31, 2004 |           |           | 619,936   |                |   | $     | 13.98 | 
|                                | January 31, 2005 |           |           | 468,061   |                |   | $     | 13.98 | 



|                         |  |             |           |           |             |  |           |          |  |   |           |           |  |          |         |  |  |   |       | 
|------------------------ |  | ----------- | --------- | --------- | ----------- |  | --------- | -------- |  | - | --------- | --------- |  | -------- | ------- |  |  | - | ----- | 
|                         |  | Outstanding |           |           | Exercisable | 
|                         |  |             |           |           |             | 
|                         |  |             |           | Weighted- |             |  | Weighted- |          |  |   |           | Weighted- | 
|                         |  |             |           | Average   |             |  | Average   |          |  |   |           | Average   | 
|                         |  | Number of   |           |           | Remaining   |  |           | Exercise |  |   | Number of |           |  | Exercise |        
|Range of Exercise Prices |  | Shares      |           |           | Life        |  |           | Price    |  |   | Shares    |           |  | Price    |        
|                         |  |             |           |           |             |  |           |          |  |   |           |           |  |          |        
|$ 7.57 - $ 9.46          |  |             | 17,798    |           |             |  | 9.7       |          |  | $ | 8.50      |           |  | $        |        |  |  | $ |      | 
|$ 9.46 - $11.35          |  |             | 14,043    |           |             |  | 9.6       |          |  |   | 10.67     |           |  |          |        |  |  |   |      | 
|$11.35 - $13.25          |  |             | 21,895    |           |             |  | 9.5       |          |  |   | 12.62     |           |  |          |        |  |  |   |      | 
|$13.25 - $15.14          |  |             | 1,763,803 |           |             |  | 8.5       |          |  |   | 13.92     |           |  |          | 462,410 |  |  |   | 13.93 | 
|$15.14 - $17.03          |  |             | 17,135    |           |             |  | 9.0       |          |  |   | 16.07     |           |  |          | 1,208   |  |  |   | 16.08 | 
|$17.03 - $18.93          |  |             | 25,507    |           |             |  | 9.0       |          |  |   | 17.82     |           |  |          | 4,443   |  |  |   | 18.06 | 
|                         |  |             |           |           |             |  |           |          |  |   |           |           |  |          |        
|                         |  |             | 1,860,181 |           |             |  | 8.5       |          |  | $ | 13.91     |           |  |          | 468,061 |  |  | $ | 13.98 | 
|                         |  |             |           |           |             |  |           |          |  |   |           |           |  |          |        



|                        |  |                  |           |   |                  |  |           |  
|----------------------- |  | ---------------- | --------- | - | ---------------- |  | --------- | -
|                        |  | January 31, 2005 |           |   | January 31, 2004 | 
|                        |  |                  |           |   |                  | 
|Risk free interest rate |  |                  | 3.33-4.78 | % |                  |  | 3.26-4.39 | %
|Expected life           |  |                  | 6 years   |   |                  |  | 6 years   |  
|Expected volatility     |  |                  | 49        | % |                  |  | 49        | %
|Expected dividends      |  |                  | 0         | % |                  |  | 0         | %





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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|         |                      
|-------- | ---------------------
|Note 18. | Common Stock Offering





|         |                    
|-------- | -------------------
|Note 19. | Cadillac Adjustment







|                                    |  |           |      |                 |                 |   |       |  
|----------------------------------- |  | --------- | ---- | --------------- | --------------- | - | ----- | -
|                                    |  |           |      | Impact on Basic |                
|                                    |  | Impact on |      |                 | and Diluted Net |  
|Interim Period                      |  | Net Loss  |      |                 | Loss per Share  |  
|                                    |  |           |      |                 |                 |  
|Predecessor                         |  |           |      |                 |                 |   |       |  
|Three Months Ended April 30, 2003   |  | $         |     |                 |                 | $ |      |  
|One Month Ended May 31, 2003        |  | $         | (0.1 | )               |                 | $ |      |  
|Four Months Ended May 31, 2003      |  | $         | (0.1 | )               |                 | $ |      |  
|Successor                           |  |           |      |                 |                 |   |       |  
|Two Months Ended July 31, 2003      |  | $         | (0.4 | )               |                 | $ | (0.01 | )
|Three Months Ended October 31, 2003 |  | $         | (0.1 | )               |                 | $ |      |  
|Three Months Ended January 1, 2004  |  | $         | (0.3 | )               |                 | $ | (0.01 | )
|Eight Months Ended January 1, 2004  |  | $         | (0.8 | )               |                 | $ | (0.02 | )
|Three Months Ended April 30, 2004   |  | $         | 0.1  |                 |                 | $ |      |  
|Three Months Ended July 31, 2004    |  | $         | (0.1 | )               |                 | $ |      |  
|Six Months Ended July 31, 2004      |  | $         |     |                 |                 | $ |      |  

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 20. Accounts Receivable Securitization




Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of
Liabilities.






Note 21. Segment Information






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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                      |                   |             |   |         |             |  |      |         |         |  |             |       |         |  |   |         |         |  
|------------------------------------- | ----------------- | ----------- | - | ------- | ----------- |  | ---- | ------- | ------- |  | ----------- | ----- | ------- |  | - | ------- | ------- | -
|                                      |                   | Successor   |   |         | Predecessor | 
|                                      |                   |             |   |         |             | 
|                                      |                   |             |   | Eight   |             |  | Four |         |         | 
|                                      |                   | Year        |   |         | Months      |  |      | Months  |         |  | Year        |      
|                                      |                   | Ended       |   |         | Ended       |  |      | Ended   |         |  | Ended       |      
|                                      |                   | January 31, |   |         | January 31, |  |      | May 31, |         |  | January 31, |      
|                                      |                   | 2005        |   |         | 2004        |  |      | 2003    |         |  | 2003        |      
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|Revenues:                             |                   |             |   |         |             |  |      |         |         |  |             |       |         |  |   |        
|                                      | Automotive Wheels |             | $ | 1,388.8 |             |  | $    | 825.3   |         |  | $           | 403.5 |         |  | $ | 1,168.8 |        
|                                      | Components        |             |   | 696.5   |             |  |      | 460.2   |         |  |             | 248.1 |         |  |   | 737.7   |        
|                                      | Other             |             |   | 159.2   |             |  |      | 81.1    |         |  |             | 38.2  |         |  |   | 95.1    |        
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|                                      |                   | Total       |   | $       | 2,244.5     |  |      | $       | 1,366.6 |  |             | $     | 689.8   |  |   | $       | 2,001.6 |  
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|Earnings (loss) from operations:      |                   |             |   |         |             |  |      |         |         |  |             |       |         |  |   |        
|                                      | Automotive Wheels |             | $ | 54.4    |             |  | $    | 30.0    |         |  | $           | 85.4  |         |  | $ | 32.5    |        
|                                      | Components        |             |   | (25.6   | )           |  |      | (0.1    | )       |  |             | 37.2  |         |  |   | 25.1    |        
|                                      | Other             |             |   | (7.1    | )           |  |      | (18.4   | )       |  |             | (72.1 | )       |  |   | (57.9   | )      
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|                                      |                   | Total       |   | $       | 21.7        |  |      | $       | 11.5    |  |             | $     | 50.5    |  |   | $       | (0.3    | )
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|Depreciation and amortization:        |                   |             |   |         |             |  |      |         |         |  |             |       |         |  |   |        
|                                      | Automotive Wheels |             | $ | 107.4   |             |  | $    | 63.6    |         |  | $           | 25.4  |         |  | $ | 76.8    |        
|                                      | Components        |             |   | 59.0    |             |  |      | 40.0    |         |  |             | 18.2  |         |  |   | 46.1    |        
|                                      | Other             |             |   | 11.7    |             |  |      | 7.5     |         |  |             | 2.8   |         |  |   | 9.1     |        
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|                                      |                   | Total       |   | $       | 178.1       |  |      | $       | 111.1   |  |             | $     | 46.4    |  |   | $       | 132.0   |  
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|Capital expenditures:                 |                   |             |   |         |             |  |      |         |         |  |             |       |         |  |   |        
|                                      | Automotive Wheels |             | $ | 91.6    |             |  | $    | 51.9    |         |  | $           | 13.5  |         |  | $ | 52.7    |        
|                                      | Components        |             |   | 55.6    |             |  |      | 44.0    |         |  |             | 11.2  |         |  |   | 49.4    |        
|                                      | Other             |             |   | 11.5    |             |  |      | 10.8    |         |  |             | 1.6   |         |  |   | 4.7     |        
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|                                      |                   | Total       |   | $       | 158.7       |  |      | $       | 106.7   |  |             | $     | 26.3    |  |   | $       | 106.8   |  
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|Extraordinary gain on debt discharge: |                   |             |   |         |             |  |      |         |         |  |             |       |         |  |   |        
|                                      | Automotive Wheels |             | $ |        |             |  | $    |        |         |  | $           | 81.1  |         |  | $ |        |        
|                                      | Components        |             |   |        |             |  |      |        |         |  |             | 58.3  |         |  |   |        |        
|                                      | Other             |             |   |        |             |  |      |        |         |  |             | 937.3 |         |  |   |        |        
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      
|                                      |                   | Total       |   | $       |            |  |      | $       |        |  |             | $     | 1,076.7 |  |   | $       |        |  
|                                      |                   |             |   |         |             |  |      |         |         |  |             |      

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|              |                   |             |   |         |             |  |   |         |         | 
|------------- | ----------------- | ----------- | - | ------- | ----------- |  | - | ------- | ------- | 
|              |                   | Successor   |  
|              |                   |             |  
|              |                   | January 31, |   |         | January 31, | 
|              |                   | 2005        |   |         | 2004        | 
|              |                   |             |   |         |             | 
|Total assets: |                   |             |   |         |             |  |   |        
|              | Automotive Wheels |             | $ | 1,726.9 |             |  | $ | 1,490.6 |        
|              | Components        |             |   | 541.4   |             |  |   | 542.4   |        
|              | Other             |             |   | 33.7    |             |  |   | 264.7   |        
|              |                   |             |   |         |             | 
|              |                   | Total       |   | $       | 2,302.0     |  |   | $       | 2,297.7 | 
|              |                   |             |   |         |             | 
|Goodwill:     |                   |             |   |         |             |  |   |        
|              | Automotive Wheels |             | $ | 417.9   |             |  | $ | 416.2   |        
|              | Components        |             |   |        |             |  |   |        |        
|              | Other             |             |   |        |             |  |   |        |        
|              |                   |             |   |         |             | 
|              |                   | Total       |   | $       | 417.9       |  |   | $       | 416.2   | 
|              |                   |             |   |         |             | 



|          |                  |             |   |         |             |  |      |         |         |  |             |       |       |  |   |         |         | 
|--------- | ---------------- | ----------- | - | ------- | ----------- |  | ---- | ------- | ------- |  | ----------- | ----- | ----- |  | - | ------- | ------- | 
|          |                  | Successor   |   |         | Predecessor | 
|          |                  |             |   |         |             | 
|          |                  |             |   | Eight   |             |  | Four |         |         | 
|          |                  | Year        |   |         | Months      |  |      | Months  |         |  | Year        |      
|          |                  | Ended       |   |         | Ended       |  |      | Ended   |         |  | Ended       |      
|          |                  | January 31, |   |         | January 31, |  |      | May 31, |         |  | January 31, |      
|          |                  | 2005        |   |         | 2004        |  |      | 2003    |         |  | 2003        |      
|          |                  |             |   |         |             |  |      |         |         |  |             |      
|Revenues: |                  |             |   |         |             |  |      |         |         |  |             |       |       |  |   |        
|          | North America    |             | $ | 1,099.9 |             |  | $    | 736.9   |         |  | $           | 410.4 |       |  | $ | 1,256.0 |        
|          | Europe and other |             |   | 1,144.6 |             |  |      | 629.7   |         |  |             | 279.4 |       |  |   | 745.6   |        
|          |                  |             |   |         |             |  |      |         |         |  |             |      
|          |                  | Total       |   | $       | 2,244.5     |  |      | $       | 1,366.6 |  |             | $     | 689.8 |  |   | $       | 2,001.6 | 
|          |                  |             |   |         |             |  |      |         |         |  |             |      



|                         |                  |             |   |         |             |  |   |         |         | 
|------------------------ | ---------------- | ----------- | - | ------- | ----------- |  | - | ------- | ------- | 
|                         |                  | Successor   |  
|                         |                  |             |  
|                         |                  | January 31, |   |         | January 31, | 
|                         |                  | 2005        |   |         | 2004        | 
|                         |                  |             |   |         |             | 
|Total long-lived assets: |                  |             |   |         |             |  |   |        
|                         | North America    |             | $ | 534.9   |             |  | $ | 540.6   |        
|                         | Europe and other |             |   | 1,161.8 |             |  |   | 1,156.9 |        
|                         |                  |             |   |         |             | 
|                         |                  | Total       |   | $       | 1,696.7     |  |   | $       | 1,697.5 | 
|                         |                  |             |   |         |             | 

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                       
| | ----------------------
| | Customer Concentration



|                           |  |             |      |       |             |  |      |         |  |  |             |   |  |  |      |  
|-------------------------- |  | ----------- | ---- | ----- | ----------- |  | ---- | ------- |  |  | ----------- | - |  |  | ---- | -
|                           |  | Successor   |      |       | Predecessor | 
|                           |  |             |      |       |             | 
|                           |  |             |      | Eight |             |  | Four |         |  | 
|                           |  | Year        |      |       | Months      |  |      | Months  |  |  | Year        |  
|                           |  | Ended       |      |       | Ended       |  |      | Ended   |  |  | Ended       |  
|                           |  | January 31, |      |       | January 31, |  |      | May 31, |  |  | January 31, |  
|                           |  | 2005        |      |       | 2004        |  |      | 2003    |  |  | 2003        |  
|                           |  |             |      |       |             |  |      |         |  |  |             |  
|Ford Motor Company         |  |             | 18.8 | %     |             |  | 26.3 | %       |  |  | 15.8        | % |  |  | 22.8 | %
|DaimlerChrysler            |  |             | 13.2 | %     |             |  | 19.5 | %       |  |  | 8.2         | % |  |  | 17.3 | %
|General Motors Corporation |  |             | 12.4 | %     |             |  | 15.1 | %       |  |  | 3.6         | % |  |  | 12.0 | %

Note 22. Selected Quarterly Financial Data
(Unaudited)


st st st




|                                                                                                    |  |             |       |   |             |   |       |          |  |   |           |   |  |   |       |  
|--------------------------------------------------------------------------------------------------- |  | ----------- | ----- | - | ----------- | - | ----- | -------- |  | - | --------- | - |  | - | ----- | -
|                                                                                                    |  | Successor   |      
|                                                                                                    |  |             |      
|                                                                                                    |  | Quarter     |       |   | Quarter     |   |       | Quarter  |  |   | Quarter   |  
|                                                                                                    |  | Ended       |       |   | Ended       |   |       | Ended    |  |   | Ended     |  
|                                                                                                    |  | January 31, |       |   | October 31, |   |       | July 31, |  |   | April 30, |  
|                                                                                                    |  | 2005        |       |   | 2004        |   |       | 2004     |  |   | 2004      |  
|                                                                                                    |  |             |       |   |             |   |       |          |  |   |           |  
|Net sales                                                                                           |  | $           | 548.0 |   |             | $ | 570.4 |          |  | $ | 532.1     |   |  | $ | 594.0 |  
|Gross profit                                                                                        |  |             | 22.4  |   |             |   | 56.7  |          |  |   | 49.6      |   |  |   | 74.3  |  
|Loss before cumulative effect of change in accounting principle                                     |  |             | (48.3 | ) |             |   | (5.3  | )        |  |   | (9.8      | ) |  |   | (1.5  | )
|Net income (loss)                                                                                   |  |             | (48.3 | ) |             |   | (5.3  | )        |  |   | (9.8      | ) |  |   | 1.1   |  
|Basic and diluted net loss per share before cumulative effect of
    change in accounting principle |  | $           | (1.28 | ) |             | $ | (0.14 | )        |  | $ | (0.26     | ) |  | $ | (0.05 | )
|Basic and diluted net loss                                                                          |  | $           | (1.28 | ) |             | $ | (0.14 | )        |  | $ | (0.26     | ) |  | $ | 0.02  |  

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                 |  |             |         |   |             |   |       |             |  |   |            |   |  |           |       |   |           |   |         |   |  |   |       |  
|------------------------------------------------ |  | ----------- | ------- | - | ----------- | - | ----- | ----------- |  | - | ---------- | - |  | --------- | ----- | - | --------- | - | ------- | - |  | - | ----- | -
|                                                 |  | Successor   |         |   | Predecessor |  
|                                                 |  |             |         |   |             |  
|                                                 |  | Eight       |         |   |             |   |      
|                                                 |  | Months      |         |   | Quarter     |   |       | Quarter     |  |   | Two Months |   |  | One Month |       |   | Quarter   |  
|                                                 |  | Ended       |         |   | Ended       |   |       | Ended       |  |   | Ended      |   |  | Ended     |       |   | Ended     |  
|                                                 |  | January 31, |         |   | January 31, |   |       | October 31, |  |   | July 31,   |   |  | May 31,   |       |   | April 30, |  
|                                                 |  | 2004        |         |   | 2004        |   |       | 2003        |  |   | 2003       |   |  | 2003      |       |   | 2003      |  
|                                                 |  |             |         |   |             |   |       |             |  |   |            |   |  |           |       |   |           |  
|Net sales                                        |  | $           | 1,366.6 |   |             | $ | 507.4 |             |  | $ | 530.9      |   |  | $         | 328.3 |   |           | $ | 174.5   |   |  | $ | 515.3 |  
|Gross profit                                     |  |             | 140.8   |   |             |   | 42.1  |             |  |   | 69.3       |   |  |           | 29.4  |   |           |   | 26.7    |   |  |   | 51.8  |  
|Loss before extraordinary gain on debt discharge |  |             | (46.5   | ) |             |   | (27.3 | )           |  |   | (10.0      | ) |  |           | (9.2  | ) |           |   | (11.2   | ) |  |   | (22.5 | )
|Extraordinary gain on debt discharge             |  |             |        |   |             |   |      |             |  |   |           |   |  |           |      |   |           |   | 1,076.7 |   |  |   |      |  
|                                                
|Net income (loss) as reported                    |  |             | (46.5   | ) |             |   | (27.3 | )           |  |   | (10.0      | ) |  |           | (9.2  | ) |           |   | 1,065.5 |   |  |   | (22.5 | )
|Elimination of one month lag                     |  |             | 1.5     |   |             |   | (4.4  | )           |  |   | 3.9        |   |  |           | 1.9   |   |           |   | (2.9    | ) |  |   | 0.4   |  
|                                                 |  |             |         |   |             |   |       |             |  |   |            |   |  |           |       |   |           |  
|Proforma net income (loss)                       |  | $           | (45.0   | ) |             | $ | (31.7 | )           |  | $ | (6.1       | ) |  | $         | (7.3  | ) |           | $ | 1,062.6 |   |  | $ | (22.1 | )
|                                                 |  |             |         |   |             |   |       |             |  |   |            |   |  |           |       |   |           |  
|                                                
|Basic and diluted net loss per share as reported |  | $           | (1.55   | ) |             | $ | (0.91 | )           |  | $ | (0.33      | ) |  | $         | (0.31 | ) |           |   |         |   |  |   |       |  
|Elimination of one month lag                     |  |             | 0.05    |   |             |   | (0.15 | )           |  |   | 0.13       |   |  |           | 0.07  |   |           |   |         |   |  |   |       |  
|                                                 |  |             |         |   |             |   |       |             |  |   |            |   |  |           |       |   |           |  
|Proforma basic and diluted net loss per share    |  | $           | (1.50   | ) |             | $ | (1.06 | )           |  | $ | (0.20      | ) |  | $         | (0.24 | ) |           |   |         |   |  |   |       |  
|                                                 |  |             |         |   |             |   |       |             |  |   |            |   |  |           |       |   |           |  



|         |                  
|-------- | -----------------
|Note 23. | Subsequent Events









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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                             
|-------- | --------------------------------------------
|Note 24. | Condensed Consolidating Financial Statements







| |                                                
| | -----------------------------------------------
| | Guarantor and Nonguarantor Financial Statements



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


SUCCESSOR COMPANY


For the Year Ended January 31, 2005


|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |      |       |      |      |      |         |       |       |      | 
|--------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ------------------------------- | ----- | ------ | --------- | ----- | ------------ | ------------ | ----- | ------------ | ----- | ----- | ------------ | ------- | ---- | ----- | ---- | ----- | ---- | ---- | ---- | ------- | ----- | ----- | ---- | 
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        | Guarantor |       |              | Nonguarantor |       |              |       |       |             
|                                                                            |                                                                                                                        | Parent                                                                                                |                                 |       | Issuer |           |       | Subsidiaries |              |       | Subsidiaries |       |       | Eliminations |         |      | Total |     
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |     
|                                                                            |                                                                                                                        | (Dollars in millions)                                                                                 |                                
|Net sales                                                                   |                                                                                                                        | $                                                                                                     |                                |       |        | $         | 3.1   |              |              | $     | 1,028.0      |       |       | $            | 1,241.0 |      |       | $    | (27.6 | )    |      | $    | 2,244.5 |      
|Cost of goods sold                                                          |                                                                                                                        |                                                                                                       |                                |       |        |           | 25.3  |              |              |       | 975.0        |       |       |              | 1,068.4 |      |       |      | (27.2 | )    |      |      | 2,041.5 |      
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |     
|Gross profit (loss)                                                         |                                                                                                                        |                                                                                                       |                                |       |        |           | (22.2 | )            |              |       | 53.0         |       |       |              | 172.6   |      |       |      | (0.4  | )    |      |      | 203.0   |      
|Marketing, general, and administrative                                      |                                                                                                                        |                                                                                                       |                                |       |        |           | 3.6   |              |              |       | 90.9         |       |       |              | 72.0    |      |       |      |      |      |      |      | 166.5   |      
|Amortization of intangible assets                                           |                                                                                                                        |                                                                                                       |                                |       |        |           | 0.9   |              |              |       | 1.9          |       |       |              | 11.0    |      |       |      |      |      |      |      | 13.8    |      
|Equity in (earnings) losses of joint ventures and
    subsidiaries          |                                                                                                                        |                                                                                                       | 70.0                            |       |        |           | 7.9   |              |              |       | (4.0         | )     |       |              |        |      |       |      | (73.9 | )    |      |      |        |      
|Asset impairments and other restructuring charges                           |                                                                                                                        |                                                                                                       |                                |       |        |           | 1.0   |              |              |       | 5.8          |       |       |              | 2.5     |      |       |      |      |      |      |      | 9.3     |      
|Other expense (income), net                                                 |                                                                                                                        |                                                                                                       |                                |       |        |           | (2.2  | )            |              |       | (1.7         | )     |       |              | (5.9    | )    |       |      | 1.5   |      |      |      | (8.3    | )    
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |     
|                                                                            |                                                                                                                        |                                                                                                       | Earnings (loss) from operations |       |        | (70.0     | )     |              |              | (33.4 | )            |       |       | (39.9        | )       |      |       | 93.0 |       |      |      | 72.0 |         |       |       | 21.7 | 
|Interest (income) expense, net                                              |                                                                                                                        |                                                                                                       | (7.7                            | )     |        |           | 23.8  |              |              |       | 0.2          |       |       |              | 27.6    |      |       |      |      |      |      |      | 43.9    |      
|Other non-operating expense                                                 |                                                                                                                        |                                                                                                       |                                |       |        |           | 0.8   |              |              |       |             |       |       |              | 0.9     |      |       |      |      |      |      |      | 1.7     |      
|Loss on early extinguishment of debt                                        |                                                                                                                        |                                                                                                       |                                |       |        |           | 12.2  |              |              |       |             |       |       |              |        |      |       |      |      |      |      |      | 12.2    |      
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |     
|                                                                            | Earnings (loss) before taxes on income, minority interest, and
    cumulative effect of change in accounting principle |                                                                                                       |                                 | (62.3 | )      |           |       | (70.2        | )            |       |              | (40.1 | )     |              |         | 64.5 |       |      |       | 72.0 |      |      |         | (36.1 | )    
|Income tax expense                                                          |                                                                                                                        |                                                                                                       |                                |       |        |           | 0.7   |              |              |       | 1.6          |       |       |              | 17.4    |      |       |      |      |      |      |      | 19.7    |      
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |     
|                                                                            |                                                                                                                        | Earnings (loss) before minority interest, and cumulative effect
    of change in accounting principle |                                 |       | (62.3  | )         |       |              | (70.9        | )     |              |       | (41.7 | )            |         |      | 47.1  |      |       |      | 72.0 |      |         |       | (55.8 | )   
|Minority interest                                                           |                                                                                                                        |                                                                                                       |                                |       |        |           |      |              |              |       |             |       |       |              | 9.1     |      |       |      |      |      |      |      | 9.1     |      
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |     
|Cumulative effect of change in accounting principle, net of tax
    of $0.8 |                                                                                                                        |                                                                                                       |                                |       |        |           |      |              |              |       |             |       |       |              | 2.6     |      |       |      |      |      |      |      | 2.6     |      
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |     
|Net income (loss)                                                           |                                                                                                                        | $                                                                                                     | (62.3                           | )     |        | $         | (70.9 | )            |              | $     | (41.7        | )     |       | $            | 40.6    |      |       | $    | 72.0  |      |      | $    | (62.3   | )    
|                                                                            |                                                                                                                        |                                                                                                       |                                 |       |        |           |       |              |              |       |              |       |       |              |         |      |       |     

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


SUCCESSOR COMPANY


For the Eight Months Ended January 31, 2004


|                                                                   |                                                              |                                          |                                 |       |        |           |       |              |              |       |              |       |       |              |       |      |       |      |       |      |      |      |         |       |       |      | 
|------------------------------------------------------------------ | ------------------------------------------------------------ | ---------------------------------------- | ------------------------------- | ----- | ------ | --------- | ----- | ------------ | ------------ | ----- | ------------ | ----- | ----- | ------------ | ----- | ---- | ----- | ---- | ----- | ---- | ---- | ---- | ------- | ----- | ----- | ---- | 
|                                                                   |                                                              |                                          |                                 |       |        | Guarantor |       |              | Nonguarantor |       |              |       |       |             
|                                                                   |                                                              | Parent                                   |                                 |       | Issuer |           |       | Subsidiaries |              |       | Subsidiaries |       |       | Eliminations |       |      | Total |     
|                                                                   |                                                              |                                          |                                 |       |        |           |       |              |              |       |              |       |       |              |       |      |       |     
|                                                                   |                                                              | (Dollars in millions)                    |                                
|Net sales                                                          |                                                              | $                                        |                                |       |        | $         | 2.6   |              |              | $     | 710.6        |       |       | $            | 682.6 |      |       | $    | (29.2 | )    |      | $    | 1,366.6 |      
|Cost of goods sold                                                 |                                                              |                                          |                                |       |        |           | 20.8  |              |              |       | 653.2        |       |       |              | 581.0 |      |       |      | (29.2 | )    |      |      | 1,225.8 |      
|                                                                   |                                                              |                                          |                                 |       |        |           |       |              |              |       |              |       |       |              |       |      |       |     
|Gross profit (loss)                                                |                                                              |                                          |                                |       |        |           | (18.2 | )            |              |       | 57.4         |       |       |              | 101.6 |      |       |      |      |      |      |      | 140.8   |      
|Marketing, general and administrative                              |                                                              |                                          |                                |       |        |           | 1.5   |              |              |       | 56.2         |       |       |              | 38.5  |      |       |      |      |      |      |      | 96.2    |      
|Amortization of intangibles assets                                 |                                                              |                                          |                                |       |        |           | 0.6   |              |              |       | 1.3          |       |       |              | 6.6   |      |       |      |      |      |      |      | 8.5     |      
|Equity in (earnings) losses of joint ventures and
    subsidiaries |                                                              |                                          | 47.6                            |       |        |           |      |              |              |       | 1.1          |       |       |              |      |      |       |      | (48.7 | )    |      |      |        |      
|Asset impairments and other restructuring charges                  |                                                              |                                          |                                 |       |        |           |       |              |              |       | 28.4         |       |       |              | 0.5   |      |       |      |       |      |      |      | 28.9    |      
|Other expense (income), net                                        |                                                              |                                          |                                |       |        |           | (2.7  | )            |              |       | (2.4         | )     |       |              | 0.8   |      |       |      |      |      |      |      | (4.3    | )    
|                                                                   |                                                              |                                          |                                 |       |        |           |       |              |              |       |              |       |       |              |       |      |       |     
|                                                                   |                                                              |                                          | Earnings (loss) from operations |       |        | (47.6     | )     |              |              | (17.6 | )            |       |       | (27.2        | )     |      |       | 55.2 |       |      |      | 48.7 |         |       |       | 11.5 | 
|Interest (income) expense, net                                     |                                                              |                                          | (1.1                            | )     |        |           | (0.6  | )            |              |       | 24.6         |       |       |              | 19.2  |      |       |      |      |      |      |      | 42.1    |      
|Other non-operating expense                                        |                                                              |                                          |                                |       |        |           | 0.5   |              |              |       |             |       |       |              | 0.6   |      |       |      |      |      |      |      | 1.1     |      
|                                                                   |                                                              |                                          |                                 |       |        |           |       |              |              |       |              |       |       |              |       |      |       |     
|                                                                   | Earnings (loss) before taxes on income and minority interest |                                          |                                 | (46.5 | )      |           |       | (17.5        | )            |       |              | (51.8 | )     |              |       | 35.4 |       |      |       | 48.7 |      |      |         | (31.7 | )    
|Income tax expense                                                 |                                                              |                                          |                                |       |        |           |      |              |              |       | 1.0          |       |       |              | 9.9   |      |       |      |      |      |      |      | 10.9    |      
|                                                                   |                                                              |                                          |                                 |       |        |           |       |              |              |       |              |       |       |              |       |      |       |     
|                                                                   |                                                              | Earnings (loss) before minority interest |                                 |       | (46.5  | )         |       |              | (17.5        | )     |              |       | (52.8 | )            |       |      | 25.5  |      |       |      | 48.7 |      |         |       | (42.6 | )   
|Minority interest                                                  |                                                              |                                          |                                |       |        |           |      |              |              |       |             |       |       |              | 3.9   |      |       |      |      |      |      |      | 3.9     |      
|                                                                   |                                                              |                                          |                                 |       |        |           |       |              |              |       |              |       |       |              |       |      |       |     
|Net income (loss)                                                  |                                                              | $                                        | (46.5                           | )     |        | $         | (17.5 | )            |              | $     | (52.8        | )     |       | $            | 21.6  |      |       | $    | 48.7  |      |      | $    | (46.5   | )    
|                                                                   |                                                              |                                          |                                 |       |        |           |       |              |              |       |              |       |       |              |       |      |       |     

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


PREDECESSOR COMPANY


For the Four Months Ended May 31, 2003


|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |        |        |   |   |         |          |  
|------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | --------------------- | ------- | --------- | ------------ | - | ------------ | ------------ | - | - | ------------ | ----- | - | ----- | ------ | ------ | - | - | ------- | -------- | -
|                                                                                      |                                                                                                         |                       |         | Guarantor |              |   | Nonguarantor |              |   |   |              |      
|                                                                                      |                                                                                                         | Parent                |         |           | Subsidiaries |   |              | Subsidiaries |   |   | Eliminations |       |   | Total |       
|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |       
|                                                                                      |                                                                                                         | (Dollars in millions) |        
|Net sales                                                                             |                                                                                                         | $                     | 61.0    |           |              | $ | 330.3        |              |   | $ | 307.0        |       |   | $     | (8.5   | )      |   | $ | 689.8   |         
|Cost of goods sold                                                                    |                                                                                                         |                       | 61.3    |           |              |   | 297.6        |              |   |   | 260.9        |       |   |       | (8.5   | )      |   |   | 611.3   |         
|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |       
|Gross profit (loss)                                                                   |                                                                                                         |                       | (0.3    | )         |              |   | 32.7         |              |   |   | 46.1         |       |   |       |       |        |   |   | 78.5    |         
|Marketing, general and administrative                                                 |                                                                                                         |                       | 5.5     |           |              |   | 19.1         |              |   |   | 18.5         |       |   |       | (1.5   | )      |   |   | 41.6    |         
|Amortization of intangible assets                                                     |                                                                                                         |                       | 0.1     |           |              |   | 0.8          |              |   |   | 0.7          |       |   |       |       |        |   |   | 1.6     |         
|Equity in (earnings) losses of subsidiaries                                           |                                                                                                         |                       | (132.1  | )         |              |   | (7.9         | )            |   |   | (0.1         | )     |   |       | 140.1  |        |   |   |        |         
|Asset impairments and other restructuring charges                                     |                                                                                                         |                       | 0.3     |           |              |   | 4.9          |              |   |   | 1.2          |       |   |       |       |        |   |   | 6.4     |         
|Other expense (income), net                                                           |                                                                                                         |                       | (0.4    | )         |              |   | (2.2         | )            |   |   | (1.7         | )     |   |       | 0.8    |        |   |   | (3.5    | )       
|Fresh start accounting adjustments                                                    |                                                                                                         |                       |        |           |              |   | 253.4        |              |   |   | (316.5       | )     |   |       |       |        |   |   | (63.1   | )       
|Reorganization items                                                                  |                                                                                                         |                       | 13.3    |           |              |   | 31.7         |              |   |   |             |       |   |       |       |        |   |   | 45.0    |         
|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |       
|                                                                                      | Earnings (loss) from operations                                                                         |                       |         | 113.0     |              |   |              | (267.1       | ) |   |              | 344.0 |   |       |        | (139.4 | ) |   |         | 50.5     |  
|Interest expense, net                                                                 |                                                                                                         |                       | 2.8     |           |              |   | 16.4         |              |   |   | 3.5          |       |   |       |       |        |   |   | 22.7    |         
|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |       
|                                                                                      | Earnings (loss) before taxes on income, minority interest, and
    extraordinary gain on debt discharge |                       |         | 110.2     |              |   |              | (283.5       | ) |   |              | 340.5 |   |       |        | (139.4 | ) |   |         | 27.8     |  
|Income tax expense (benefit)                                                          |                                                                                                         |                       | (0.3    | )         |              |   | 7.4          |              |   |   | 53.2         |       |   |       |       |        |   |   | 60.3    |         
|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |       
|Earnings (loss) before minority interest and extraordinary gain
    on debt discharge |                                                                                                         |                       | 110.5   |           |              |   | (290.9       | )            |   |   | 287.3        |       |   |       | (139.4 | )      |   |   | (32.5   | )       
|Minority interest                                                                     |                                                                                                         |                       |        |           |              |   |             |              |   |   | 1.2          |       |   |       |       |        |   |   | 1.2     |         
|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |       
|                                                                                      | Earnings (loss) before extraordinary gain on debt discharge                                             |                       |         | 110.5     |              |   |              | (290.9       | ) |   |              | 286.1 |   |       |        | (139.4 | ) |   |         | (33.7    | )
|                                                                                      | Extraordinary gain on debt discharge                                                                    |                       |         | (932.5    | )            |   |              | (142.9       | ) |   |              | (1.3  | ) |       |        |       |   |   |         | (1,076.7 | )
|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |       
|Net income (loss)                                                                     |                                                                                                         | $                     | 1,043.0 |           |              | $ | (148.0       | )            |   | $ | 287.4        |       |   | $     | (139.4 | )      |   | $ | 1,043.0 |         
|                                                                                      |                                                                                                         |                       |         |           |              |   |              |              |   |   |              |       |   |       |       

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


PREDECESSOR COMPANY


For the Year Ended January 31, 2003


|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |        |       |       |   |         |       |      |  
|------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------- | ------------------------------- | ------ | --------- | ------------ | - | ------------ | ------------ | ---- | - | ------------ | ---- | ---- | ----- | ------ | ----- | ----- | - | ------- | ----- | ---- | -
|                                                                               |                                                                                                                        |                                 |        | Guarantor |              |   | Nonguarantor |              |      |   |              |     
|                                                                               |                                                                                                                        | Parent                          |        |           | Subsidiaries |   |              | Subsidiaries |      |   | Eliminations |      |      | Total |       
|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |       
|                                                                               |                                                                                                                        | (Dollars in millions)           |       
|Net sales                                                                      |                                                                                                                        | $                               | 234.9  |           |              | $ | 979.5        |              |      | $ | 818.0        |      |      | $     | (30.8  | )     |       | $ | 2,001.6 |      
|Cost of goods sold                                                             |                                                                                                                        |                                 | 233.8  |           |              |   | 902.6        |              |      |   | 688.3        |      |      |       | (30.8  | )     |       |   | 1,793.9 |      
|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |       
|Gross profit                                                                   |                                                                                                                        |                                 | 1.1    |           |              |   | 76.9         |              |      |   | 129.7        |      |      |       |       |       |       |   | 207.7   |      
|Marketing, general and administrative                                          |                                                                                                                        |                                 | 24.2   |           |              |   | 53.7         |              |      |   | 45.6         |      |      |       |       |       |       |   | 123.5   |      
|Amortization of intangible assets                                              |                                                                                                                        |                                 |       |           |              |   | 2.3          |              |      |   | 1.0          |      |      |       |       |       |       |   | 3.3     |      
|Equity in (earnings) losses of subsidiaries                                    |                                                                                                                        |                                 | 560.8  |           |              |   | (13.5        | )            |      |   | (2.2         | )    |      |       | (545.1 | )     |       |   |        |      
|Asset impairments and other restructuring charges                              |                                                                                                                        |                                 | 6.0    |           |              |   | 33.2         |              |      |   | 4.3          |      |      |       |       |       |       |   | 43.5    |      
|Other expense (income), net                                                    |                                                                                                                        |                                 | 6.3    |           |              |   | (6.2         | )            |      |   | (6.9         | )    |      |       |       |       |       |   | (6.8    | )    
|Reorganization items                                                           |                                                                                                                        |                                 | 35.9   |           |              |   | 8.6          |              |      |   |             |      |      |       |       |       |       |   | 44.5    |      
|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |       
|                                                                               |                                                                                                                        | Earnings (loss) from operations |        |           | (632.1       | ) |              |              | (1.2 | ) |              |      | 87.9 |       |        |       | 545.1 |   |         |       | (0.3 | )
|Interest expense, net                                                          |                                                                                                                        |                                 | 9.1    |           |              |   | 41.4         |              |      |   | 22.2         |      |      |       |       |       |       |   | 72.7    |      
|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |       
|                                                                               | Earnings (loss) before taxes on income, minority interest, and
    cumulative effect of change in accounting principle |                                 |        | (641.2    | )            |   |              | (42.6        | )    |   |              | 65.7 |      |       |        | 545.1 |       |   |         | (73.0 | )   
|Income tax expense (benefit)                                                   |                                                                                                                        |                                 | (29.4  | )         |              |   | 2.0          |              |      |   | 31.0         |      |      |       |       |       |       |   | 3.6     |      
|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |       
|                                                                               | Earnings (loss) before minority interest and cumulative effect
    of change in accounting principle                   |                                 |        | (611.8    | )            |   |              | (44.6        | )    |   |              | 34.7 |      |       |        | 545.1 |       |   |         | (76.6 | )   
|Minority interest                                                              |                                                                                                                        |                                 |       |           |              |   |             |              |      |   | 3.5          |      |      |       |       |       |       |   | 3.5     |      
|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |       
|Earnings (loss) before cumulative effect of change in accounting
    principle |                                                                                                                        |                                 | (611.8 | )         |              |   | (44.6        | )            |      |   | 31.2         |      |      |       | 545.1  |       |       |   | (80.1   | )    
|Cumulative effect of change in accounting principle, net of tax                |                                                                                                                        |                                 | 22.7   |           |              |   | 498.5        |              |      |   | 33.2         |      |      |       |       |       |       |   | 554.4   |      
|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |       
|Net income (loss)                                                              |                                                                                                                        | $                               | (634.5 | )         |              | $ | (543.1       | )            |      | $ | (2.0         | )    |      | $     | 545.1  |       |       | $ | (634.5  | )    
|                                                                               |                                                                                                                        |                                 |        |           |              |   |              |              |      |   |              |      |      |       |       

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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEETS


SUCCESSOR COMPANY


As of January 31, 2005


|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |   |          |          |   |   |         |         | 
|--------------------------------------------- | ------------------------------------------ | --------------------- | ------ | ----- | ------ | --------- | ------- | ------------ | ------------ | - | ------------ | ----- |  | ------------ | ----- | ------- | ----- | - | -------- | -------- | - | - | ------- | ------- | 
|                                              |                                            |                       |        |       |        | Guarantor |         |              | Nonguarantor |   |              |       |  |             
|                                              |                                            | Parent                |        |       | Issuer |           |         | Subsidiaries |              |   | Subsidiaries |       |  | Eliminations |       |         | Total |  
|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              |                                            | (Dollars in millions) |       
|Cash and cash equivalents                     |                                            | $                     |       |       |        | $         | (9.3    | )            |              | $ | (0.2         | )     |  | $            | 44.7  |         |       | $ |         |          |   | $ | 35.2    |        
|Receivables                                   |                                            |                       |       |       |        |           | (135.0  | )            |              |   | 151.2        |       |  |              | 225.2 |         |       |   |         |          |   |   | 241.4   |        
|Other receivables                             |                                            |                       |       |       |        |           | 77.0    |              |              |   |             |       |  |              |      |         |       |   |         |          |   |   | 77.0    |        
|Inventories                                   |                                            |                       |       |       |        |           | 4.6     |              |              |   | 89.0         |       |  |              | 119.0 |         |       |   |         |          |   |   | 212.6   |        
|Prepaid expenses and other                    |                                            |                       |       |       |        |           | 11.4    |              |              |   | 12.2         |       |  |              | 5.7   |         |       |   |         |          |   |   | 29.3    |        
|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|Total current assets                          |                                            |                       |       |       |        |           | (51.3   | )            |              |   | 252.2        |       |  |              | 394.6 |         |       |   |         |          |   |   | 595.5   |        
|Property, plant, and equipment, net           |                                            |                       |       |       |        |           | 38.9    |              |              |   | 342.1        |       |  |              | 619.3 |         |       |   |         |          |   |   | 1,000.3 |        
|Goodwill and other assets                     |                                            |                       | 702.0  |       |        |           | 1,214.9 |              |              |   | 52.5         |       |  |              | 640.2 |         |       |   | (1,903.4 | )        |   |   | 706.2   |        
|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              | Total assets                               |                       | $      | 702.0 |        |           | $       | 1,202.5      |              |   | $            | 646.8 |  |              | $     | 1,654.1 |       |   | $        | (1,903.4 | ) |   | $       | 2,302.0 | 
|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|Bank borrowings and other notes               |                                            | $                     |       |       |        | $         |        |              |              | $ |             |       |  | $            | 0.6   |         |       | $ |         |          |   | $ | 0.6     |        
|Current portion of long-term debt             |                                            |                       |       |       |        |           | 4.6     |              |              |   | 1.3          |       |  |              | 4.6   |         |       |   |         |          |   |   | 10.5    |        
|Accounts payable and accrued liabilities      |                                            |                       |       |       |        |           | 76.1    |              |              |   | 88.6         |       |  |              | 240.6 |         |       |   |         |          |   |   | 405.3   |        
|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              | Total current liabilities                  |                       |        |      |        |           |         | 80.7         |              |   |              | 89.9  |  |              |       | 245.8   |       |   |          |         |   |   |         | 416.4   | 
|Long-term debt, net of current portion        |                                            |                       |       |       |        |           | 606.6   |              |              |   | 7.1          |       |  |              | 17.4  |         |       |   |         |          |   |   | 631.1   |        
|Pension and other long-term liabilities       |                                            |                       |       |       |        |           | 251.9   |              |              |   | 0.4          |       |  |              | 255.4 |         |       |   |         |          |   |   | 507.7   |        
|Series A warrants and Series B warrants       |                                            |                       | 0.5    |       |        |           |        |              |              |   |             |       |  |              |      |         |       |   |         |          |   |   | 0.5     |        
|Redeemable preferred stock of subsidiaries    |                                            |                       |       |       |        |           | 11.3    |              |              |   |             |       |  |              |      |         |       |   |         |          |   |   | 11.3    |        
|Minority interest                             |                                            |                       |       |       |        |           |        |              |              |   |             |       |  |              | 33.7  |         |       |   |         |          |   |   | 33.7    |        
|Parents loans                                 |                                            |                       | 0.2    |       |        |           | (373.0  | )            |              |   | 27.0         |       |  |              | 345.5 |         |       |   | 0.3      |          |   |   |        |        
|Common stock                                  |                                            |                       | 0.4    |       |        |           |        |              |              |   |             |       |  |              |      |         |       |   |         |          |   |   | 0.4     |        
|Additional paid-in capital                    |                                            |                       | 670.6  |       |        |           | 680.3   |              |              |   | 617.4        |       |  |              | 588.0 |         |       |   | (1,885.7 | )        |   |   | 670.6   |        
|Retained earnings (accumulated deficit)       |                                            |                       | (108.8 | )     |        |           | (87.7   | )            |              |   | (95.2        | )     |  |              | 62.2  |         |       |   | 120.7    |          |   |   | (108.8  | )      
|Accumulated other comprehensive income (loss) |                                            |                       | 139.1  |       |        |           | 32.4    |              |              |   | 0.2          |       |  |              | 106.1 |         |       |   | (138.7   | )        |   |   | 139.1   |        
|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              | Total stockholders equity                 |                       |        | 701.3 |        |           |         | 625.0        |              |   |              | 522.4 |  |              |       | 756.3   |       |   |          | (1,903.7 | ) |   |         | 701.3   | 
|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              | Total liabilities and stockholders equity |                       | $      | 702.0 |        |           |         | 1,202.5      |              |   | $            | 646.8 |  |              | $     | 1,654.1 |       |   | $        | (1,903.4 | ) |   | $       | 2,302.0 | 
|                                              |                                            |                       |        |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  

98



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEETS


SUCCESSOR COMPANY


As of January 31, 2004


|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |   |          |          |   |   |       |         | 
|--------------------------------------------- | ------------------------------------------ | --------------------- | ----- | ----- | ------ | --------- | ------- | ------------ | ------------ | - | ------------ | ----- |  | ------------ | ----- | ------- | ----- | - | -------- | -------- | - | - | ----- | ------- | 
|                                              |                                            |                       |       |       |        | Guarantor |         |              | Nonguarantor |   |              |       |  |             
|                                              |                                            | Parent                |       |       | Issuer |           |         | Subsidiaries |              |   | Subsidiaries |       |  | Eliminations |       |         | Total |  
|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              |                                            | (Dollars in millions) |      
|Cash and cash equivalents                     |                                            | $                     |      |       |        | $         | (3.2    | )            |              | $ | (0.6         | )     |  | $            | 52.3  |         |       | $ |         |          |   | $ | 48.5  |        
|Receivables                                   |                                            |                       |      |       |        |           | 1.2     |              |              |   | 133.1        |       |  |              | 191.2 |         |       |   |         |          |   |   | 325.5 |        
|Inventories                                   |                                            |                       |      |       |        |           | 5.7     |              |              |   | 86.5         |       |  |              | 97.1  |         |       |   |         |          |   |   | 189.3 |        
|Prepaid expenses and other                    |                                            |                       |      |       |        |           | 6.8     |              |              |   | 8.9          |       |  |              | 13.3  |         |       |   |         |          |   |   | 29.0  |        
|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|Total current assets                          |                                            |                       |      |       |        |           | 10.5    |              |              |   | 227.9        |       |  |              | 353.9 |         |       |   |         |          |   |   | 592.3 |        
|Net property, plant, and equipment            |                                            |                       |      |       |        |           | 36.6    |              |              |   | 355.5        |       |  |              | 574.4 |         |       |   |         |          |   |   | 966.5 |        
|Goodwill and other assets                     |                                            |                       | 604.1 |       |        |           | 1,307.6 |              |              |   | 83.3         |       |  |              | 618.9 |         |       |   | (1,875.0 | )        |   |   | 738.9 |        
|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              | Total assets                               |                       | $     | 604.1 |        |           | $       | 1,354.7      |              |   | $            | 666.7 |  |              | $     | 1,547.2 |       |   | $        | (1,875.0 | ) |   | $     | 2,297.7 | 
|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|Bank borrowings and other notes               |                                            | $                     |      |       |        | $         |        |              |              | $ |             |       |  | $            | 14.2  |         |       | $ |         |          |   | $ | 14.2  |        
|Current portion of long-term debt             |                                            |                       |      |       |        |           | 4.5     |              |              |   |             |       |  |              | 6.8   |         |       |   |         |          |   |   | 11.3  |        
|Accounts payable and accrued liabilities      |                                            |                       |      |       |        |           | 83.3    |              |              |   | 83.8         |       |  |              | 188.4 |         |       |   |         |          |   |   | 355.5 |        
|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              | Total current liabilities                  |                       |       |      |        |           |         | 87.8         |              |   |              | 83.8  |  |              |       | 209.4   |       |   |          |         |   |   |       | 381.0   | 
|Long-term debt, net of current portion        |                                            |                       |      |       |        |           | 714.3   |              |              |   | 8.4          |       |  |              | 29.7  |         |       |   |         |          |   |   | 752.4 |        
|Deferred tax liabilities                      |                                            |                       |      |       |        |           |        |              |              |   |             |       |  |              | 98.5  |         |       |   |         |          |   |   | 98.5  |        
|Pension and other long-term liabilities       |                                            |                       |      |       |        |           | 263.1   |              |              |   | 0.4          |       |  |              | 164.5 |         |       |   |         |          |   |   | 428.0 |        
|Series A warrants and Series B warrants       |                                            |                       | 8.2   |       |        |           |        |              |              |   |             |       |  |              |      |         |       |   |         |          |   |   | 8.2   |        
|Redeemable preferred stock of subsidiaries    |                                            |                       |      |       |        |           | 10.5    |              |              |   |             |       |  |              |      |         |       |   |         |          |   |   | 10.5  |        
|Minority interest                             |                                            |                       |      |       |        |           |        |              |              |   |             |       |  |              | 23.2  |         |       |   |         |          |   |   | 23.2  |        
|Parents loans                                 |                                            |                       |      |       |        |           | (293.3  | )            |              |   | (24.5        | )     |  |              | 315.4 |         |       |   | 2.4      |          |   |   |      |        
|Common stock                                  |                                            |                       | 0.3   |       |        |           |        |              |              |   |             |       |  |              |      |         |       |   |         |          |   |   | 0.3   |        
|Additional paid-in capital                    |                                            |                       | 548.2 |       |        |           | 557.8   |              |              |   | 652.3        |       |  |              | 626.6 |         |       |   | (1,836.7 | )        |   |   | 548.2 |        
|Retained earnings (accumulated deficit)       |                                            |                       | (46.5 | )     |        |           | (16.8   | )            |              |   | (53.5        | )     |  |              | 21.6  |         |       |   | 48.7     |          |   |   | (46.5 | )      
|Accumulated other comprehensive income (loss) |                                            |                       | 93.9  |       |        |           | 31.3    |              |              |   | (0.2         | )     |  |              | 58.3  |         |       |   | (89.4    | )        |   |   | 93.9  |        
|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              | Total stockholders equity                 |                       |       | 595.9 |        |           |         | 572.3        |              |   |              | 598.6 |  |              |       | 706.5   |       |   |          | (1,877.4 | ) |   |       | 595.9   | 
|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  
|                                              | Total liabilities and stockholders equity |                       | $     | 604.1 |        |           | $       | 1,354.7      |              |   | $            | 666.7 |  |              | $     | 1,547.2 |       |   | $        | (1,875.0 | ) |   | $     | 2,297.7 | 
|                                              |                                            |                       |       |       |        |           |         |              |              |   |              |       |  |              |       |         |       |  

99



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##### Table of Contents



HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


SUCCESSOR COMPANY


For the Year Ended January 31, 2005


|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |        |        |  
|------------------------------------------------------ | ------------------------------------------------------------------------------ | ------------------------------------------------ | - | ------ | ------ | --------- | ---- | ------------ | ------------ | - | ------------ | ----- | ----- | ------------ | ----- | ----- | ----- | - | - | - | - | - | ----- | ------ | ------ | -
|                                                       |                                                                                |                                                  |   |        |        | Guarantor |      |              | Nonguarantor |   |              |       |       |             
|                                                       |                                                                                | Parent                                           |   |        | Issuer |           |      | Subsidiaries |              |   | Subsidiaries |       |       | Eliminations |       | Total |      
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |      
|                                                       |                                                                                | (Dollars in millions)                            |  
|Cash flows provided by (used for) operating activities |                                                                                | $                                                |  |        |        | $         | (0.9 | )            |              | $ | 2.4          |       |       | $            | 163.1 |       |       | $ |  |   |   | $ | 164.6 |       
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |  
|Cash flows from investing activities:                  |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |       
|                                                       | Acquisition of property, plant, equipment, and tooling                         |                                                  |   |       |        |           |      | (6.5         | )            |   |              | (60.1 | )     |              |       | (92.1 | )     |   |   |  |   |   |       | (158.7 | )     
|                                                       | Proceeds from sale of non-core businesses                                      |                                                  |   |       |        |           |      | 0.3          |              |   |              | 0.4   |       |              |       |      |       |   |   |  |   |   |       | 0.7    |       
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |  
|                                                       |                                                                                | Cash used for investing activities               |   |        |       |           |      |              | (6.2         | ) |              |       | (59.7 | )            |       |       | (92.1 | ) |   |   |  |   |       |        | (158.0 | )
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |  
|Cash flows from financing activities:                  |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |       
|                                                       | Changes in bank borrowings and credit facility                                 |                                                  |   |       |        |           |      |             |              |   |              |      |       |              |       | (0.7  | )     |   |   |  |   |   |       | (0.7   | )     
|                                                       | Repayment of notes payable issued in connection with purchases
    of business |                                                  |   |       |        |           |      |             |              |   |              |      |       |              |       | (13.1 | )     |   |   |  |   |   |       | (13.1  | )     
|                                                       | Repayment of long term debt                                                    |                                                  |   |       |        |           |      | (4.2         | )            |   |              |      |       |              |       | (13.3 | )     |   |   |  |   |   |       | (17.5  | )     
|Net proceeds from issuance of                          |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |       
|                                                       | Common stock                                                                   |                                                  |   | 117.0  |        |           |      |             |              |   |              |      |       |              |       |      |       |   |   |  |   |   |       | 117.0  |       
|                                                       | Capital contribution                                                           |                                                  |   | (117.0 | )      |           |      | 117.0        |              |   |              |      |       |              |       |      |       |   |   |  |   |   |       |       |       
|Proceeds from (redemption of)                          |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |       
|                                                       | Senior Notes, net of discount and related fees                                 |                                                  |   |       |        |           |      | (96.7        | )            |   |              |      |       |              |       |      |       |   |   |  |   |   |       | (96.7  | )     
|Proceeds from (redemption of)                          |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |       
|                                                       | Term Loan, net of related fees                                                 |                                                  |   |       |        |           |      | (16.0        | )            |   |              |      |       |              |       |      |       |   |   |  |   |   |       | (16.0  | )     
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |  
|                                                       | Cash provided by (used for) financing activities                               |                                                  |   |       |        |           |      | 0.1          |              |   |              |      |       |              |       | (27.1 | )     |   |   |  |   |   |       | (27.0  | )     
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |  
|Increase (decrease) in parent loans and advances       |                                                                                |                                                  |  |        |        |           | 0.9  |              |              |   | 57.7         |       |       |              | (58.6 | )     |       |   |  |   |   |   |      |       
|Effect of exchange rates of cash and cash equivalents  |                                                                                |                                                  |  |        |        |           |     |              |              |   |             |       |       |              | 5.7   |       |       |   |  |   |   |   | 5.7   |       
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |  
|                                                       |                                                                                | Increase (decrease) in cash and cash equivalents |   |        |       |           |      |              | (6.1         | ) |              |       | 0.4   |              |       |       | (9.0  | ) |   |   |  |   |       |        | (14.7  | )
|Adjustment for the elimination of the one month lag    |                                                                                |                                                  |  |        |        |           |     |              |              |   |             |       |       |              | 1.4   |       |       |   |  |   |   |   | 1.4   |       
|Cash and cash equivalents at beginning of period       |                                                                                |                                                  |  |        |        |           | (3.2 | )            |              |   | (0.6         | )     |       |              | 52.3  |       |       |   |  |   |   |   | 48.5  |       
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |  
|Cash and cash equivalents at end of period             |                                                                                | $                                                |  |        |        | $         | (9.3 | )            |              | $ | (0.2         | )     |       | $            | 44.7  |       |       | $ |  |   |   | $ | 35.2  |       
|                                                       |                                                                                |                                                  |   |        |        |           |      |              |              |   |              |       |       |              |       |       |       |  

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


SUCCESSOR COMPANY


For the Eight Months Ended January 31, 2004


|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |        |        |  
|------------------------------------------------------ | ------------------------------------------------------------------------ | ----------------------------------------- | ----- | - | ------ | --------- | ----- | ------------ | ------------ | - | ------------ | ----- | ----- | ------------ | ----- | ----- | ----- | - | - | - | - | - | ----- | ------ | ------ | -
|                                                       |                                                                          |                                           |       |   |        | Guarantor |       |              | Nonguarantor |   |              |       |       |             
|                                                       |                                                                          | Parent                                    |       |   | Issuer |           |       | Subsidiaries |              |   | Subsidiaries |       |       | Eliminations |       | Total |      
|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |      
|                                                       |                                                                          | (Dollars in millions)                     |      
|Cash flows provided by (used for) operating activities |                                                                          | $                                         | (47.6 | ) |        | $         | (26.1 | )            |              | $ | 33.1         |       |       | $            | 124.5 |       |       | $ |  |   |   | $ | 83.9  |       
|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |  
|Cash flows from investing activities:                  |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |       
|                                                       | Acquisition of property, plant, equipment, and tooling                   |                                           |       |  |        |           |       | (7.7         | )            |   |              | (47.6 | )     |              |       | (51.4 | )     |   |   |  |   |   |       | (106.7 | )     
|                                                       | Proceeds from sale of non-core businesses                                |                                           |       |  |        |           |       | 1.1          |              |   |              | 0.5   |       |              |       | 3.1   |       |   |   |  |   |   |       | 4.7    |       
|                                                       | Purchase of businesses                                                   |                                           |       |  |        |           |       |             |              |   |              |      |       |              |       | (19.8 | )     |   |   |  |   |   |       | (19.8  | )     
|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |  
|                                                       |                                                                          | Cash used for investing activities        |       |   |       |           |       |              | (6.6         | ) |              |       | (47.1 | )            |       |       | (68.1 | ) |   |   |  |   |       |        | (121.8 | )
|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |  
|Cash flows from financing activities:                  |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |   |   |   |   |   |       |       
|                                                       | Changes in bank borrowings and credit facilities                         |                                           |       |  |        |           |       |             |              |   |              |      |       |              |       | (16.0 | )     |   |   |  |   |   |       | (16.0  | )     
|                                                       | Repayment of bank borrowings, revolving facility, and long term
    debt |                                           |       |  |        |           |       | (2.2         | )            |   |              |      |       |              |       | (81.7 | )     |   |   |  |   |   |       | (83.9  | )     
|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |  
|                                                       |                                                                          | Cash used for financing activities        |       |   |       |           |       |              | (2.2         | ) |              |       |      |              |       |       | (97.7 | ) |   |   |  |   |       |        | (99.9  | )
|Increase (decrease) in parent loans and advances       |                                                                          |                                           | 47.6  |   |        |           | (76.3 | )            |              |   | 13.7         |       |       |              | 15.0  |       |       |   |  |   |   |   |      |       
|Effect of exchange rates of cash and cash equivalents  |                                                                          |                                           |      |   |        |           |      |              |              |   |             |       |       |              | 7.2   |       |       |   |  |   |   |   | 7.2   |       
|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |  
|                                                       |                                                                          | Net decrease in cash and cash equivalents |       |   |       |           |       |              | (111.2       | ) |              |       | (0.3  | )            |       |       | (19.1 | ) |   |   |  |   |       |        | (130.6 | )
|Cash and cash equivalents at beginning of period       |                                                                          |                                           |      |   |        |           | 108.0 |              |              |   | (0.3         | )     |       |              | 71.4  |       |       |   |  |   |   |   | 179.1 |       
|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |  
|Cash and cash equivalents at end of period             |                                                                          | $                                         |      |   |        | $         | (3.2  | )            |              | $ | (0.6         | )     |       | $            | 52.3  |       |       | $ |  |   |   | $ | 48.5  |       
|                                                       |                                                                          |                                           |       |   |        |           |       |              |              |   |              |       |       |              |       |       |       |  

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


PREDECESSOR COMPANY


For the Four Months Ended May 31, 2003


|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |   |   |   |   |       |        |       |  
|------------------------------------------------------ | ------------------------------------------------------------------------------- | ------------------------------------------------ | ----- | --------- | ------------ | - | ------------ | ------------ | ----- | - | ------------ | ---- | ----- | - | - | - | - | - | ----- | ------ | ----- | -
|                                                       |                                                                                 |                                                  |       | Guarantor |              |   | Nonguarantor |              |       |   |              |     
|                                                       |                                                                                 | Parent                                           |       |           | Subsidiaries |   |              | Subsidiaries |       |   | Eliminations |      | Total |  
|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |  
|                                                       |                                                                                 | (Dollars in millions)                            |      
|Cash flows provided by (used for) operating activities |                                                                                 | $                                                | (7.5  | )         |              | $ | 14.7         |              |       | $ | 23.9         |      |       | $ |  |   |   | $ | 31.1  |       
|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |  
|Cash flows from investing activities:                  |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |   |   |   |   |       |       
|                                                       | Acquisition of property, plant, equipment, and tooling                          |                                                  |       | (24.9     | )            |   |              | (15.4        | )     |   |              | (9.6 | )     |   |   |  |   |   |       | (49.9  | )    
|                                                       | Proceeds from sale of non-core businesses                                       |                                                  |       |          |              |   |              | 0.5          |       |   |              | 0.3  |       |   |   |  |   |   |       | 0.8    |      
|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |  
|                                                       |                                                                                 | Cash used for investing activities               |       |           | (24.9        | ) |              |              | (14.9 | ) |              |      | (9.3  | ) |   |   |  |   |       |        | (49.1 | )
|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |  
|Cash flows from financing activities:                  |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |   |   |   |   |       |       
|                                                       | Changes in bank borrowings, credit facilities, DIP facility and
    other notes |                                                  |       | (59.7     | )            |   |              | (2.0         | )     |   |              |     |       |   |   |  |   |   |       | (61.7  | )    
|                                                       | Proceeds from debt issuance                                                     |                                                  |       | 678.9     |              |   |              |             |       |   |              |     |       |   |   |  |   |   |       | 678.9  |      
|                                                       | Prepetition lenders payment                                                    |                                                  |       | (477.3    | )            |   |              |             |       |   |              |     |       |   |   |  |   |   |       | (477.3 | )    
|                                                       | Payment to holders of Old Senior Notes                                          |                                                  |       | (13.0     | )            |   |              |             |       |   |              |     |       |   |   |  |   |   |       | (13.0  | )    
|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |  
|                                                       |                                                                                 | Cash provided by (used for) financing activities |       |           | 128.9        |   |              |              | (2.0  | ) |              |      |      |   |   |   |  |   |       |        | 126.9 |  
|Increase (decrease) in parent loans and advances       |                                                                                 |                                                  | (1.9  | )         |              |   | 2.2          |              |       |   | (0.3         | )    |       |   |  |   |   |   |      |       
|Effect of exchange rates of cash and cash equivalents  |                                                                                 |                                                  |      |           |              |   |             |              |       |   | 4.1          |      |       |   |  |   |   |   | 4.1   |       
|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |  
|                                                       | Net increase in cash and cash equivalents                                       |                                                  |       | 94.6      |              |   |              |             |       |   |              | 18.4 |       |   |   |  |   |   |       | 113.0  |      
|Cash and cash equivalents at beginning of period       |                                                                                 |                                                  | 13.3  |           |              |   |             |              |       |   | 52.8         |      |       |   |  |   |   |   | 66.1  |       
|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |  
|Cash and cash equivalents at end of period             |                                                                                 | $                                                | 107.9 |           |              | $ |             |              |       | $ | 71.2         |      |       | $ |  |   |   | $ | 179.1 |       
|                                                       |                                                                                 |                                                  |       |           |              |   |              |              |       |   |              |      |       |   |  

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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


PREDECESSOR COMPANY


For the Year Ended January 31, 2003


|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |   |   |   |   |       |        |        |      | 
|------------------------------------------------------ | ------------------------------------------------------ | ---------------------------------- | ---------------------------------------------------- | --------- | ------------ | --- | ------------ | ------------ | ----- | ---- | ------------ | ----- | ------ | ---- | - | - | - | - | ----- | ------ | ------ | ---- | 
|                                                       |                                                        |                                    |                                                      | Guarantor |              |     | Nonguarantor |              |       |      |              |      
|                                                       |                                                        | Parent                             |                                                      |           | Subsidiaries |     |              | Subsidiaries |       |      | Eliminations |       | Totals |     
|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |     
|                                                       |                                                        | (Dollars in millions)              |                                                     
|Cash flows provided by (used for) operating activities |                                                        | $                                  | (8.2                                                 | )         |              | $   | 9.9          |              |       | $    | 104.0        |       |        | $    |  |   |   | $ | 105.7 |       
|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |  
|Cash flows from investing activities:                  |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |   |   |   |   |       |       
|                                                       | Acquisition of property, plant, equipment, and tooling |                                    |                                                      | (12.2     | )            |     |              | (49.0        | )     |      |              | (45.6 | )      |      |   |  |   |   |       | (106.8 | )     
|                                                       | Proceeds from sale of non-core businesses              |                                    |                                                      |          |              |     |              | (1.2         | )     |      |              | 3.6   |        |      |   |  |   |   |       | 2.4    |       
|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |  
|                                                       |                                                        | Cash used for investing activities |                                                      |           | (12.2        | )   |              |              | (50.2 | )    |              |       | (42.0  | )    |   |   |  |   |       |        | (104.4 | )   
|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |  
|Cash flows from financing activities:                  |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |   |   |   |   |       |       
|                                                       | Changes in bank borrowings and credit facilities       |                                    |                                                      | 48.9      |              |     |              | 1.0          |       |      |              | (35.4 | )      |      |   |  |   |   |       | 14.5   |       
|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |  
|                                                       | Cash provided by (used for) financing activities       |                                    |                                                      | 48.9      |              |     |              | 1.0          |       |      |              | (35.4 | )      |      |   |  |   |   |       | 14.5   |       
|Increase (decrease) in parent loans and advances       |                                                        |                                    | (26.5                                                | )         |              |     | 38.9         |              |       |      | (12.4        | )     |        |      |  |   |   |   |      |       
|Effect of exchange rates of cash and cash equivalents  |                                                        |                                    |                                                     |           |              |     |             |              |       |      | 5.1          |       |        |      |  |   |   |   | 5.1   |       
|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |  
|                                                       |                                                        |                                    | Net increase (decrease) in cash and cash equivalents |           |              | 2.0 |              |              |       | (0.4 | )            |       |        | 19.3 |   |   |   |  |       |        |        | 20.9 | 
|Cash and cash equivalents at beginning of period       |                                                        |                                    | 11.3                                                 |           |              |     | 0.4          |              |       |      | 33.5         |       |        |      |  |   |   |   | 45.2  |       
|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |  
|Cash and cash equivalents at end of period             |                                                        | $                                  | 13.3                                                 |           |              | $   |             |              |       | $    | 52.8         |       |        | $    |  |   |   | $ | 66.1  |       
|                                                       |                                                        |                                    |                                                      |           |              |     |              |              |       |      |              |       |        |      |  

103



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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

a. Evaluation of Disclosure Controls and Procedures




b. Managements Report on Internal Control over
Financial Reporting










Internal Control  Integrated
Framework,


104



---



##### Table of Contents







|   |                                                     
|-- | ----------------------------------------------------
|c. | Changes in Internal Control Over Financial Reporting





Report of Independent Registered Public Accounting Firm






Managements Report on Internal Control
over Financial Reporting Internal Control-Integrated
Framework






105



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##### Table of Contents









Internal Control-Integrated
Framework Internal
Control-Integrated Framework .











PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant



Audit Committee Financial Expert




106



---



##### Table of Contents





Code of Ethics




Section 16(a) Beneficial Ownership Reporting
Compliance









|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters



|                                                           |       |                      |           |           |                      |                         |                       |                         |  |  |         |         | 
|---------------------------------------------------------- | ----- | -------------------- | --------- | --------- | -------------------- | ----------------------- | --------------------- | ----------------------- |  |  | ------- | ------- | 
|                                                           |       |                      |           |           |                      | Number of Securities    |                      
|                                                           |       |                      |           |           |                      | Remaining Available for |                      
|                                                           |       | Number of Securities |           |           |                      |                         | Future Issuance Under |                        
|                                                           |       | to be Issued Upon    |           |           | Weighted-Average     |                         |                       | Equity Compensation     | 
|                                                           |       | Exercise of          |           |           | Exercise Price of    |                         |                       | Plans (Excluding        | 
|                                                           |       | Outstanding Options, |           |           | Outstanding Options, |                         |                       | Securities Reflected in | 
|                                                           |       | Warrants and Rights  |           |           | Warrants and Rights  |                         |                       | Column (a))             | 
|Plan Category                                              |       | (a)                  |           |           | (b)                  |                         |                       | (c)                     | 
|                                                           |       |                      |           |           |                      |                         |                       |                         | 
|Equity compensation plans approved by security holders     |       |                      | 1,860,181 |           |                      | $                       | 13.91                 |                         |  |  | 677,857 |        
|Equity compensation plans not approved by security holders |       |                      |          |           |                      |                         |                       |                         |  |  |         |        
|                                                           | Total |                      |           | 1,860,181 |                      |                         | $                     | 13.91                   |  |  |         | 677,857 | 










|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions



107



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##### Table of Contents








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services






PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules



|                                                                         |  |      |    | 
|------------------------------------------------------------------------ |  | ---- | -- | 
|                                                                         |  | Page |   
|                                                                         |  |      |   
|Report of Independent Registered Public Accounting Firm                  |  |      | 48 | 
|Consolidated Statements of Operations                                    |  |      | 50 | 
|Consolidated Balance Sheets                                              |  |      | 51 | 
|Consolidated Statements of Cash Flows                                    |  |      | 52 | 
|Consolidated Statements of Changes in Stockholders Equity
    (Deficit) |  |      | 53 | 
|Notes to Consolidated Financial Statements                               |  |      | 54 | 





| |                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Schedule II  Valuation and Qualifying Accounts
    for fiscal 2004, 2003 and 2002                                                                                                                                                                                                
|
| | All other schedules are omitted as the information required to
    be contained therein is disclosed elsewhere in the financial
    statements or the amounts involved are not sufficient to require
    submission or the schedule is otherwise not required to be
    submitted.



| |   |    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2 | .1 |  | Modified First Amended Joint Plan of Reorganization of Hayes
    Lemmerz International, Inc. and Its Affiliated Debtors and
    Debtors in Possession, as Further Modified (incorporated by
    reference to Exhibit 2.1 to the Companys Current
    Report on Form 8-K, filed May 21, 2003).                                                                                                                                                          
|
| | 2 | .2 |  | Agreement and Plan of Merger, dated as of June 3, 2003, by
    and between Hayes Lemmerz International, Inc. and HLI Operating
    Company, Inc. (incorporated by reference to Exhibit 2.3 to
    the Companys Current Report on Form 8-K filed,
    June 3, 2003).                                                                                                                                                                                    
|
| | 3 | .1 |  | Certificate of Incorporation of HLI Holding Company, Inc.,
    effective as of May 6, 2003 (incorporated by reference to
    Exhibit 3.1 to the Companys Form 8-A/A, filed
    June 4, 2003).                                                                                                                                                                                                                                                          
|
| | 3 | .2 |  | Amendment to the Certificate of Incorporation of HLI Holding
    Company, Inc., effective as of June 3, 2003 (incorporated
    by reference to Exhibit 3.2 to the Companys Form
    8-A/A, filed June 4, 2003).                                                                                                                                                                                                                                        
|
| | 3 | .3 |  | By-Laws of Hayes Lemmerz International, Inc. (formerly known as
    HLI Holding Company, Inc.), effective as of May 30, 2003
    (incorporated by reference to Exhibit 3.3 to the
    Companys Form 8-A/A, filed June 4, 2003).                                                                                                                                                                                                                        
|
| | 4 | .1 |  | Purchase Agreement, dated as of May 22, 2003, by and
    between Hayes Lemmerz International, Inc., its subsidiaries
    named therein, and the Initial Purchasers of the $250,000,000 of
    101/2% Senior
    Notes due 2010 to be issued by HLI Operating Company, Inc.
    (incorporated by reference to Exhibit 4.1 to the
    Companys Quarterly Report on Form 10-Q for the
    quarterly period ended April 30, 2003, filed June 16,
    2003).
|
| | 4 | .2 |  | Indenture, dated as of June 3, 2003, regarding $250,000,000
    of
    101/2% Senior
    Notes due 2010, by and between HLI Operating Company, certain
    listed Guarantors, and U.S. Bank National Association, as
    Trustee (incorporated by reference to Exhibit 4.2 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended April 30, 2003, filed June 16, 2003).                                                  
|
| | 4 | .3 |  | Form of
    101/2% Senior
    Notes due 2010 (attached as Exhibit A to the Indenture
    filed as Exhibit 4.2 to the Companys Quarterly Report
    on Form 10-Q for the quarterly period ended April 30, 2003,
    filed June 16, 2003).                                                                                                                                                                                                               

108



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| |    |    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | -- | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4  | .4 |  | First Supplemental Indenture, dated as of June 19, 2003, by
    and between HLI Operating Company, Inc. certain listed
    Guarantors, and U.S. Bank National Association, as Trustee
    (incorporated by reference to Exhibit 4.2 to the
    Companys Registration statement No. 333-107539 on
    Form S-4, filed on July 31, 2003, as amended).                                                                                                                                                                                                                                
|
| | 4  | .5 |  | Registration Rights Agreement, dated as of June 3, 2003, by
    and between HLI Operating Company, Inc. and the Initial
    Purchasers of the
    101/2% Senior
    Notes due 2010 (incorporated by reference to Exhibit 4.3 to
    the Companys Quarterly Report on Form 10-Q for the
    quarterly period ended April 30, 2003, filed June 16,
    2003).                                                                                                                                                                                                                        
|
| | 4  | .6 |  | Series A Warrant Agreement, dated as of June 2, 2003,
    by and between Hayes Lemmerz International, Inc. and Mellon
    Investor Services LLC, as Warrant Agent (incorporated by
    reference to Exhibit 4.1 to the Companys Form 8-A,
    filed June 4, 2003).                                                                                                                                                                                                                                                                                                                 
|
| | 4  | .7 |  | Series B Warrant Agreement, dated as of June 2, 2003,
    by and between Hayes Lemmerz International, Inc. and Mellon
    Investor Services LLC, as Warrant Agent (incorporated by
    reference to Exhibit 4.2 to the Companys Form 8-A,
    filed June 4, 2003).                                                                                                                                                                                                                                                                                                                 
|
| | 4  | .8 |  | Exchange Agreement, dated as of June 3, 2003, by and
    between Hayes Lemmerz International, Inc., HLI Parent Company,
    Inc. and HLI Operating Company, Inc. regarding the Series A
    Exchangeable Preferred Stock issued by HLI Operating Company,
    Inc. (incorporated by reference to Exhibit 4.3 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended April 30, 2003, filed June 16, 2003).                                                                                                                                            
|
| | 4  | .9 |  | Registration Rights Agreement, dated as of July 1, 2004, by
    and between Hayes Lemmerz International, Inc., and AP Wheels,
    LLC (incorporated by reference to Exhibit 4.9 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended July 31, 2004, filed September 8, 2004).                                                                                                                                                                                                                                                                      
|
| | 10 | .1 |  | Form of Severance Agreement, dated June 15, 2000, between
    the Company and certain of its officers (incorporated by
    reference from the Companys Quarterly Report on Form 10-Q
    for the quarter ended October 31, 2000, filed on
    December 15, 2000).                                                                                                                                                                                                                                                                                                                  
|
| | 10 | .2 |  | Amended and Restated Employment Agreement between the Company
    and Curtis J. Clawson, dated September 26, 2001
    (incorporated by reference from the Companys Quarterly
    Report on Form 10-Q for the quarter ended October 31, 2001,
    filed on April 18, 2002).                                                                                                                                                                                                                                                                                                         
|
| | 10 | .3 |  | Form of Employment Agreement between the Company and certain of
    its officers (incorporated by reference from the Companys
    Quarterly Report on Form 10-Q for the quarter ended
    October 31, 2001, filed on April 18, 2002).                                                                                                                                                                                                                                                                                                                                              
|
| | 10 | .4 |  | Hayes Lemmerz International, Inc. Long Term Incentive Plan
    (incorporated by reference to Exhibit 10.1 to the
    Companys Registration Statement No. 333-110684 on
    Form S-8, filed on November 21, 2003).                                                                                                                                                                                                                                                                                                                                                                  
|
| | 10 | .5 |  | Hayes Lemmerz International, Inc. Critical Employee Retention
    Plan (incorporated by reference to Exhibit 10.2 to the
    Companys Registration Statement No. 333-110684 on
    Form S-8, filed on November 21, 2003).                                                                                                                                                                                                                                                                                                                                                          
|
| | 10 | .6 |  | Credit Agreement, dated as of June 3, 2003, by and among
    HLI Operating Company, Inc., as Borrower, Hayes Lemmerz
    International, Inc., the Lenders and Issuers listed therein,
    Citicorp North America, Inc., as Administrative Agent, Lehman
    Commercial Paper, Inc., as Syndication Agent, and General
    Electric Capital Corporation, as Documentation Agent
    (Incorporated by reference to Exhibit 99.3 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended April 30, 2003, filed June 16, 2003).                           
|
| | 10 | .7 |  | Amendment No. 1 and Waiver to Credit Agreement, dated as of
    October 16, 2003, by and among HLI Operating Company, Inc.,
    as Borrower, Hayes Lemmerz International, Inc., the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent (incorporated by reference to
    Exhibit 10.26 to the Companys Registration Statement
    No. 333-107539 on Form S-4, filed on July 31,
    2003 as amended).

109



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| |    |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -- | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .8  |  | Amendment No. 2 and Waiver to Credit Agreement, dated as of
    February 6, 2004, by and among HLI Operating Company, Inc.,
    as Borrower, Hayes Lemmerz International, Inc. the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent (incorporated by reference to
    Exhibit 10.8 to the Companys Annual Report on
    Form 10-K filed on April 12, 2004).                                                                                                                                                                                 
|
| | 10 | .9  |  | Form of Directors Indemnification Agreement (incorporated by
    reference to Exhibit 10.49 to the Companys Quarterly
    Report on Form 10-Q for the quarterly period ended
    July 31, 2003, filed September 15, 2003, as amended).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | 10 | .10 |  | Amendment No. 3 and Waiver to Credit Agreement, dated as of
    May 6, 2004, by and among HLI Operating Company, Inc., as
    Borrower, Hayes Lemmerz International, Inc. the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent (incorporated by reference to
    Exhibit 10.10 to the Companys Quarterly Report on
    Form 10-Q for the quarterly period ended July 31,
    2004, filed on September 8, 2004).                                                                                                                             
|
| | 10 | .11 |  | Waiver of Certain Post Closing Covenants dated as of
    June 1, 2004, by and among HLI Operating Company, Inc., as
    Borrower, Hayes Lemmerz International, Inc. the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent (incorporated by reference to
    Exhibit 10.11 to the Companys Quarterly Report on
    Form 10-Q for the quarterly period ended July 31, 2004,
    filed on September 8, 2004).                                                                                                                                   
|
| | 10 | .12 |  | Amendment No. 4 and Waiver to Credit Agreement, dated as of
    November 10, 2004, by and among HLI Operating Company,
    Inc., as Borrower, Hayes Lemmerz International, Inc. the Lenders
    and Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent.                                                                                                                                                                                                                                                                                                        
|
| | 10 | .13 |  | Receivables Financing Agreement, dated as of December 9,
    2004 among HL Funding II, Inc., a Delaware corporation,
    CAFCO, LLC, a Delaware limited liability company, as an
    investor, Citibank, N.A., as a bank, Citicorp North America,
    Inc., a Delaware corporation, as program agent for the investors
    and the banks and as an investor agent, the other investors,
    banks and investor agents (each as defined below) from time to
    time party hereto, HLI Operating Company, Inc., a Delaware
    corporation, as servicer, and the disbursement agent named
    therein (incorporated by reference to Exhibit 10.1 to the
    Companys Current Report on Form 8-K filed
    December 15, 2004).
|
| | 10 | .14 |  | Originator Purchase Agreement , dated as of December 9,
    2004 among HL Funding I, LLC, a Delaware limited liability
    company, and the wholly-owned subsidiaries of the Company named
    therein as Originators , dated as of December 9, 2004
    between HL Funding I, LLC, a Delaware limited liability
    company, and HL Funding II, Inc., a Delaware corporation
    (incorporated by reference to Exhibit 10.2 to the
    Companys Current Report on Form 8-K filed
    December 15, 2004).                                                                                                                                                                                                                   
|
| | 10 | .15 |  | Secondary Purchase Agreement, dated as of December 9, 2004
    between HL Funding I, LLC, a Delaware limited liability
    company, and HL Funding II, Inc., a Delaware
    corporation(incorporated by reference to Exhibit 10.3 to
    the Companys Current Report on Form 8-K filed
    December 15, 2004).                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | 10 | .16 |  | Amended and Restated Credit Agreement, dated as of
    April 11, 2005 by and among HLI Operating Company, Inc., as
    Borrower, Hayes Lemmerz International, Inc., the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as First
    Lien Agent, Second Lien Agent and Collateral Agent, Lehman
    Commercial Paper, Inc., as Syndication Agent, and General
    Electric Capital Corporation, as Documentation Agent
    (incorporated by reference to Exhibit 10.1 to the
    Companys Current Report on Form 8-K filed
    April 14, 2005).                                                                                                                                                       
|
| | 12 |     |  | Computation of Ratio of Earnings to Fixed Charges.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | 14 |     |  | Code of Ethics (incorporated by reference to Exhibit 10.8
    to the Companys Annual Report on Form 10-K filed on
    April 12, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | 18 |     |  | Preferability Letter of KPMG LLP.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | 21 |     |  | Subsidiaries of the Company.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | 23 |     |  | Consent of Independent Registered Public Accounting Firm.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

110



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| |    |    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -- | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 24 |    |  | Powers of Attorney.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | 31 | .1 |  | Certification of Curtis J. Clawson, Chairman of the Board,
    President and Chief Executive Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                            
|
| | 31 | .2 |  | Certification of James A. Yost, Vice President, Finance, and
    Chief Financial Officer, pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                        
|
| | 32 | .1 |  | Certification of Curtis J. Clawson, Chairman of the Board,
    President and Chief Executive Officer, Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                         
|
| | 32 | .2 |  | Certification of James A. Yost, Vice President, Finance, and
    Chief Financial Officer, Pursuant to 18 U.S.C.
    Section 1350, as Adopted Pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                     
|
| | 99 | .1 |  | Amended and Restated Certificate of Incorporation of HLI
    Operating Company, Inc., effective as of May 30, 2003
    (incorporated by reference to Exhibit 4.3 to the
    Companys Quarterly Report on Form 10-Q for the
    quarterly period ended April 30, 2003, filed June 16,
    2003).                                                                                                                                                                                                 
|
| | 99 | .2 |  | Guaranty, dated as of June 3, 2003, by and between HLI
    Operating Company, Hayes Lemmerz International, Inc., and the
    Guarantors named therein (incorporated by reference to
    Exhibit 4.3 to the Companys Quarterly Report on Form
    10-Q for the quarterly period ended April 30, 2003, filed
    June 16, 2003).                                                                                                                                                                  
|
| | 99 | .3 |  | Pledge and Security Agreement, dated as of June 3, 2003, by
    and between Hayes Lemmerz International, Inc. and HLI Operating
    Company, as Grantors, the Additional Grantors named therein,
    Citicorp North America, Inc., as Administrative Agent, and
    Lehman Commercial Paper, Inc., as Syndication Agent
    (incorporated by reference to Exhibit 4.3 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended April 30, 2003, filed June 16, 2003).






|  |                               
|- | ------------------------------
|* | Filed electronically herewith.





| |                                                                                                            
| | -----------------------------------------------------------------------------------------------------------
| | The Company has filed all exhibits required by Item 601 of
    Regulation S-K., as an exhibit to this form.





| |                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Schedule II  Valuation and Qualifying Accounts
    for fiscal 2004, 2003 and 2002                                                                                                                                                                                                
|
| | All other schedules are omitted as the information required to
    be contained therein is disclosed elsewhere in the financial
    statements or the amounts involved are not sufficient to require
    submission or the schedule is otherwise not required to be
    submitted.

111



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##### Table of Contents






SIGNATURES






| |                                  
| | ---------------------------------
| | HAYES LEMMERZ INTERNATIONAL, INC.



| |     |                  
| | --- | -----------------
| | By: | /s/ JAMES A. YOST

| |                             
| | ----------------------------
| |                             
| | James A. Yost               
| | Vice President, Finance, and
| | Chief Financial Officer     



|                                                         |  |                                                                                        |  |                |  | 
|-------------------------------------------------------- |  | -------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                                |  | Title                                                                                  |  | Date          
|                                                         |  |                                                                                        |  |               
|                                                        
|/s/ CURTIS J. CLAWSONCurtis
    J. Clawson               |  | Chairman of the Board of Directors Chief Executive Officer,
    President and Director |  | April 19, 2005
|                                                        
|/s/ JAMES A. YOSTJames
    A. Yost                       |  | Vice President, Finance, and Chief Financial Officer                                   |  | April 19, 2005
|                                                        
|/s/ MARK A. BREBBERMANMark
    A. Brebberman             |  | Corporate Controller                                                                   |  | April 19, 2005
|                                                        
|/s/ LAURENCE BERG *Laurence
    Berg                     |  | Director                                                                               |  | April 19, 2005
|                                                        
|/s/ WILLIAM C. CUNNINGHAM *William
    C. Cunningham     |  | Director                                                                               |  | April 19, 2005
|                                                        
|/s/ GEORGE T. HAYMAKER, JR. *George
    T. Haymaker, Jr. |  | Lead Director                                                                          |  | April 19, 2005
|                                                        
|/s/ LAURIE SIEGEL *Laurie
    Siegel                     |  | Director                                                                               |  | April 19, 2005
|                                                        
|/s/ MOHSEN SOHI *Mohsen
    Sohi                         |  | Director                                                                               |  | April 19, 2005
|                                                        
|/s/ HENRY D.G. WALLACE *Henry
    D.G. Wallace           |  | Director                                                                               |  | April 19, 2005

112



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##### Table of Contents



|                                                            |  |          |  |                |  | 
|----------------------------------------------------------- |  | -------- |  | -------------- |  | 
|Signature                                                   |  | Title    |  | Date          
|                                                            |  |          |  |               
|                                                           
|/s/ RICHARD F. WALLMAN *Richard
    F. Wallman              |  | Director |  | April 19, 2005
|                                                           
|*/s/ PATRICK C. CAULEYPatrick
    C. CauleyAttorney-in-fact |  |          |  | April 19, 2005

113



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HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES


SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


|                                                                |  |                       |     |           |            |  |     |            |  |         |         |   |  |   |     | 
|--------------------------------------------------------------- |  | --------------------- | --- | --------- | ---------- |  | --- | ---------- |  | ------- | ------- | - |  | - | --- | 
|                                                                |  |                       |     | Additions |            |  |     |            | 
|                                                                |  | Balance at            |     |           | Charged to |  |     |            |  | Balance |        
|                                                                |  | Beginning             |     |           | Costs and  |  |     |            |  | at End  |        
|Description                                                     |  | of Year               |     |           | Expenses   |  |     | Deductions |  |         | of Year |  
|                                                                |  |                       |     |           |            |  |     |            |  |         |         |  
|                                                                |  | (Dollars in millions) |    
|Year ended January 31, 2005
    Allowance for doubtful accounts |  | $                     | 6.6 |           |            |  | 4.4 |            |  |         | (4.8    | ) |  | $ | 6.2 | 
|Year ended January 31, 2004
    Allowance for doubtful accounts |  | $                     | 7.2 |           |            |  | 0.8 |            |  |         | (1.4    | ) |  | $ | 6.6 | 
|Year ended January 31, 2003
    Allowance for doubtful accounts |  | $                     | 5.9 |           |            |  | 2.1 |            |  |         | (0.8    | ) |  | $ | 7.2 | 

114



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##### Table of Contents






EXHIBIT INDEX


| |    |    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | -- | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2  | .1 |  | Modified First Amended Joint Plan of Reorganization of Hayes
    Lemmerz International, Inc. and Its Affiliated Debtors and
    Debtors in Possession, as Further Modified (incorporated by
    reference to Exhibit 2.1 to the Companys Current
    Report on Form 8-K, filed May 21, 2003).                                                                                                                                                          
|
| | 2  | .2 |  | Agreement and Plan of Merger, dated as of June 3, 2003, by
    and between Hayes Lemmerz International, Inc. and HLI Operating
    Company, Inc. (incorporated by reference to Exhibit 2.3 to
    the Companys Current Report on Form 8-K filed,
    June 3, 2003).                                                                                                                                                                                    
|
| | 3  | .1 |  | Certificate of Incorporation of HLI Holding Company, Inc.,
    effective as of May 6, 2003 (incorporated by reference to
    Exhibit 3.1 to the Companys Form 8-A/A, filed
    June 4, 2003).                                                                                                                                                                                                                                                          
|
| | 3  | .2 |  | Amendment to the Certificate of Incorporation of HLI Holding
    Company, Inc., effective as of June 3, 2003 (incorporated
    by reference to Exhibit 3.2 to the Companys Form
    8-A/A, filed June 4, 2003).                                                                                                                                                                                                                                        
|
| | 3  | .3 |  | By-Laws of Hayes Lemmerz International, Inc. (formerly known as
    HLI Holding Company, Inc.), effective as of May 30, 2003
    (incorporated by reference to Exhibit 3.3 to the
    Companys Form 8-A/A, filed June 4, 2003).                                                                                                                                                                                                                        
|
| | 4  | .1 |  | Purchase Agreement, dated as of May 22, 2003, by and
    between Hayes Lemmerz International, Inc., its subsidiaries
    named therein, and the Initial Purchasers of the $250,000,000 of
    101/2% Senior
    Notes due 2010 to be issued by HLI Operating Company, Inc.
    (incorporated by reference to Exhibit 4.1 to the
    Companys Quarterly Report on Form 10-Q for the
    quarterly period ended April 30, 2003, filed June 16,
    2003).
|
| | 4  | .2 |  | Indenture, dated as of June 3, 2003, regarding $250,000,000
    of
    101/2% Senior
    Notes due 2010, by and between HLI Operating Company, certain
    listed Guarantors, and U.S. Bank National Association, as
    Trustee (incorporated by reference to Exhibit 4.2 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended April 30, 2003, filed June 16, 2003).                                                  
|
| | 4  | .3 |  | Form of
    101/2% Senior
    Notes due 2010 (attached as Exhibit A to the Indenture
    filed as Exhibit 4.2 to the Companys Quarterly Report
    on Form 10-Q for the quarterly period ended April 30, 2003,
    filed June 16, 2003).                                                                                                                                                                                                               
|
| | 4  | .4 |  | First Supplemental Indenture, dated as of June 19, 2003, by
    and between HLI Operating Company, Inc. certain listed
    Guarantors, and U.S. Bank National Association, as Trustee
    (incorporated by reference to Exhibit 4.2 to the
    Companys Registration statement No. 333-107539 on
    Form S-4, filed on July 31, 2003, as amended).                                                                                                    
|
| | 4  | .5 |  | Registration Rights Agreement, dated as of June 3, 2003, by
    and between HLI Operating Company, Inc. and the Initial
    Purchasers of the
    101/2% Senior
    Notes due 2010 (incorporated by reference to Exhibit 4.3 to
    the Companys Quarterly Report on Form 10-Q for the
    quarterly period ended April 30, 2003, filed June 16,
    2003).                                                                                            
|
| | 4  | .6 |  | Series A Warrant Agreement, dated as of June 2, 2003,
    by and between Hayes Lemmerz International, Inc. and Mellon
    Investor Services LLC, as Warrant Agent (incorporated by
    reference to Exhibit 4.1 to the Companys Form 8-A,
    filed June 4, 2003).                                                                                                                                                                                     
|
| | 4  | .7 |  | Series B Warrant Agreement, dated as of June 2, 2003,
    by and between Hayes Lemmerz International, Inc. and Mellon
    Investor Services LLC, as Warrant Agent (incorporated by
    reference to Exhibit 4.2 to the Companys Form 8-A,
    filed June 4, 2003).                                                                                                                                                                                     
|
| | 4  | .8 |  | Exchange Agreement, dated as of June 3, 2003, by and
    between Hayes Lemmerz International, Inc., HLI Parent Company,
    Inc. and HLI Operating Company, Inc. regarding the Series A
    Exchangeable Preferred Stock issued by HLI Operating Company,
    Inc. (incorporated by reference to Exhibit 4.3 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended April 30, 2003, filed June 16, 2003).                
|
| | 4  | .9 |  | Registration Rights Agreement, dated as of July 1, 2004, by
    and between Hayes Lemmerz International, Inc., and AP Wheels,
    LLC (incorporated by reference to Exhibit 4.9 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended July 31, 2004, filed September 8, 2004).                                                                                                                                          
|
| | 10 | .1 |  | Form of Severance Agreement, dated June 15, 2000, between
    the Company and certain of its officers (incorporated by
    reference from the Companys Quarterly Report on Form 10-Q
    for the quarter ended October 31, 2000, filed on
    December 15, 2000).                                                                                                                                                                                      

115



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| |    |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | -- | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .2  |  | Amended and Restated Employment Agreement between the Company
    and Curtis J. Clawson, dated September 26, 2001
    (incorporated by reference from the Companys Quarterly
    Report on Form 10-Q for the quarter ended October 31, 2001,
    filed on April 18, 2002).                                                                                                                                                                                                                                                                                                                     
|
| | 10 | .3  |  | Form of Employment Agreement between the Company and certain of
    its officers (incorporated by reference from the Companys
    Quarterly Report on Form 10-Q for the quarter ended
    October 31, 2001, filed on April 18, 2002).                                                                                                                                                                                                                                                                                                                                                          
|
| | 10 | .4  |  | Hayes Lemmerz International, Inc. Long Term Incentive Plan
    (incorporated by reference to Exhibit 10.1 to the
    Companys Registration Statement No. 333-110684 on
    Form S-8, filed on November 21, 2003).                                                                                                                                                                                                                                                                                                                                                                              
|
| | 10 | .5  |  | Hayes Lemmerz International, Inc. Critical Employee Retention
    Plan (incorporated by reference to Exhibit 10.2 to the
    Companys Registration Statement No. 333-110684 on
    Form S-8, filed on November 21, 2003).                                                                                                                                                                                                                                                                                                                                                                      
|
| | 10 | .6  |  | Credit Agreement, dated as of June 3, 2003, by and among
    HLI Operating Company, Inc., as Borrower, Hayes Lemmerz
    International, Inc., the Lenders and Issuers listed therein,
    Citicorp North America, Inc., as Administrative Agent, Lehman
    Commercial Paper, Inc., as Syndication Agent, and General
    Electric Capital Corporation, as Documentation Agent
    (Incorporated by reference to Exhibit 99.3 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended April 30, 2003, filed June 16, 2003).                                       
|
| | 10 | .7  |  | Amendment No. 1 and Waiver to Credit Agreement, dated as of
    October 16, 2003, by and among HLI Operating Company, Inc.,
    as Borrower, Hayes Lemmerz International, Inc., the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent (incorporated by reference to
    Exhibit 10.26 to the Companys Registration Statement
    No. 333-107539 on Form S-4, filed on July 31,
    2003 as amended).            
|
| | 10 | .8  |  | Amendment No. 2 and Waiver to Credit Agreement, dated as of
    February 6, 2004, by and among HLI Operating Company, Inc.,
    as Borrower, Hayes Lemmerz International, Inc. the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent (incorporated by reference to
    Exhibit 10.8 to the Companys Annual Report on
    Form 10-K filed on April 12, 2004).                                                    
|
| | 10 | .9  |  | Form of Directors Indemnification Agreement (incorporated by
    reference to Exhibit 10.49 to the Companys Quarterly
    Report on Form 10-Q for the quarterly period ended
    July 31, 2003, filed September 15, 2003, as amended).                                                                                                                                                                                                                                                                                                                                                         
|
| | 10 | .10 |  | Amendment No. 3 and Waiver to Credit Agreement, dated as of
    May 6, 2004, by and among HLI Operating Company, Inc., as
    Borrower, Hayes Lemmerz International, Inc. the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent (incorporated by reference to
    Exhibit 10.10 to the Companys Quarterly Report on
    Form 10-Q for the quarterly period ended July 31,
    2004, filed on September 8, 2004).
|
| | 10 | .11 |  | Waiver of Certain Post Closing Covenants dated as of
    June 1, 2004, by and among HLI Operating Company, Inc., as
    Borrower, Hayes Lemmerz International, Inc. the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent (incorporated by reference to
    Exhibit 10.11 to the Companys Quarterly Report on
    Form 10-Q for the quarterly period ended July 31, 2004,
    filed on September 8, 2004).      
|
| | 10 | .12 |  | Amendment No. 4 and Waiver to Credit Agreement, dated as of
    November 10, 2004, by and among HLI Operating Company,
    Inc., as Borrower, Hayes Lemmerz International, Inc. the Lenders
    and Issuers listed therein, Citicorp North America, Inc., as
    Administrative Agent, Lehman Commercial Paper, Inc., as
    Syndication Agent, and General Electric Capital Corporation, as
    Documentation Agent.                                                                                                                                                                           

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##### Table of Contents



| |    |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -- | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .13 |  | Receivables Financing Agreement, dated as of December 9,
    2004 among HL Funding II, Inc., a Delaware corporation,
    CAFCO, LLC, a Delaware limited liability company, as an
    investor, Citibank, N.A., as a bank, Citicorp North America,
    Inc., a Delaware corporation, as program agent for the investors
    and the banks and as an investor agent, the other investors,
    banks and investor agents (each as defined below) from time to
    time party hereto, HLI Operating Company, Inc., a Delaware
    corporation, as servicer, and the disbursement agent named
    therein (incorporated by reference to Exhibit 10.1 to the
    Companys Current Report on Form 8-K filed
    December 15, 2004).
|
| | 10 | .14 |  | Originator Purchase Agreement, dated as of December 9, 2004
    among HL Funding I, LLC, a Delaware limited liability
    company, and the wholly-owned subsidiaries of the Company named
    therein as Originators , dated as of December 9, 2004
    between HL Funding I, LLC, a Delaware limited liability
    company, and HL Funding II, Inc., a Delaware corporation
    (incorporated by reference to Exhibit 10.2 to the
    Companys Current Report on Form 8-K filed
    December 15, 2004).                                                                                                                                                                                                                    
|
| | 10 | .15 |  | Secondary Purchase Agreement, dated as of December 9, 2004
    between HL Funding I, LLC, a Delaware limited liability
    company, and HL Funding II, Inc., a Delaware
    corporation(incorporated by reference to Exhibit 10.3 to
    the Companys Current Report on Form 8-K filed
    December 15, 2004).                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | 10 | .16 |  | Amended and Restated Credit Agreement, dated as of
    April 11, 2005 by and among HLI Operating Company, Inc., as
    Borrower, Hayes Lemmerz International, Inc., the Lenders and
    Issuers listed therein, Citicorp North America, Inc., as First
    Lien Agent, Second Lien Agent and Collateral Agent, Lehman
    Commercial Paper, Inc., as Syndication Agent, and General
    Electric Capital Corporation, as Documentation Agent
    (incorporated by reference to Exhibit 10.1 to the
    Companys Current Report on Form 8-K filed
    April 14, 2005).                                                                                                                                                       
|
| | 12 |     |  | Computation of Ratio of Earnings to Fixed Charges.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | 14 |     |  | Code of Ethics (incorporated by reference to Exhibit 10.8
    to the Companys Annual Report on Form 10-K filed on
    April 12, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | 18 |     |  | Preferability Letter of KPMG LLP.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | 21 |     |  | Subsidiaries of the Company.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | 23 |     |  | Consent of Independent Registered Public Accounting Firm.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | 24 |     |  | Powers of Attorney.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | 31 | .1  |  | Certification of Curtis J. Clawson, Chairman of the Board,
    President and Chief Executive Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | 31 | .2  |  | Certification of James A. Yost, Vice President, Finance, and
    Chief Financial Officer, pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | 32 | .1  |  | Certification of Curtis J. Clawson, Chairman of the Board,
    President and Chief Executive Officer, Pursuant to
    18 U.S.C. Section 1350, as Adopted Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | 32 | .2  |  | Certification of James A. Yost, Vice President, Finance, and
    Chief Financial Officer, Pursuant to 18 U.S.C.
    Section 1350, as Adopted Pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | 99 | .1  |  | Amended and Restated Certificate of Incorporation of HLI
    Operating Company, Inc., effective as of May 30, 2003
    (incorporated by reference to Exhibit 4.3 to the
    Companys Quarterly Report on Form 10-Q for the
    quarterly period ended April 30, 2003, filed June 16,
    2003).                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | 99 | .2  |  | Guaranty, dated as of June 3, 2003, by and between HLI
    Operating Company, Hayes Lemmerz International, Inc., and the
    Guarantors named therein (incorporated by reference to
    Exhibit 4.3 to the Companys Quarterly Report on Form
    10-Q for the quarterly period ended April 30, 2003, filed
    June 16, 2003).                                                                                                                                                                                                                                                                                                                                                                                              
|
| | 99 | .3  |  | Pledge and Security Agreement, dated as of June 3, 2003, by
    and between Hayes Lemmerz International, Inc. and HLI Operating
    Company, as Grantors, the Additional Grantors named therein,
    Citicorp North America, Inc., as Administrative Agent, and
    Lehman Commercial Paper, Inc., as Syndication Agent
    (incorporated by reference to Exhibit 4.3 to the
    Companys Quarterly Report on Form 10-Q for the quarterly
    period ended April 30, 2003, filed June 16, 2003).                                                                                                                                                                                                                            






|  |                               
|- | ------------------------------
|* | Filed electronically herewith.

117