The Interlake Corporation 
                                        550 Warrenville Road
                                        Lisle, IL 60532-4387
                                        630/852-8800
                                     
  FOR IMMEDIATE RELEASE - LISLE, IL.                DECEMBER 22, 1997

   For more information: Donn York, Treasurer
                              630/719-7247                


    INTERLAKE  SELLS EUROPEAN AND ASIA-PACIFIC HANDLING BUSINESSES


     Lisle, Illinois, December 22, 1997 -- The Interlake Corporation today
 announced the sale of its European and Asia-Pacific material handling
 businesses to Extondew Limited and Extonbrooks Limited.  The purchasers
 are English companies organized by Apax Partners & Co. Ventures Limited, a
 leading UK based private equity company.

     According to Stephen Gregory, Interlake's chief financial officer, net
 after-tax proceeds from the sale should exceed $80 million.   Mr. Gregory
 indicated that the proceeds will be used to repay indebtedness, and to
 finance substantial investment in the Hoeganaes special materials business.
 Hoeganaes Corporation, an Interlake subsidiary, earlier this year announced
 a planned $33.6 million expansion of its Gallatin, Tennessee powder metal
 facility.

     "This transaction enables Interlake to continue along the strategic path
 of reducing debt and concentrating our resources in our strongest
 businesses," said W. Robert Reum, chairman, president and chief executive
 officer of Interlake.  "We are excited about the growth opportunities at
 Hoeganaes and Chem-tronics."

     The sold material handling businesses trade under the Dexion and Redirack
 names.  Net revenues in 1996 totalled $260 million. Interlake will remain
 in the material handling business through Interlake Material Handling, with
 operations concentrated in North America.

     The Interlake Corporation is engaged in the design, manufacture and sale
 or distribution of products for the automotive, aerospace and material
 handling industries.