May 25, 2000

Nisshinbo and Continental Teves Agree to Joint Venture in Japan and Korea

Nisshinbo Industries, Tokyo, has concluded a wide-ranging partnership agreement in the area of brake and chassis systems with German company Continental Teves, Frankfurt, the brake and chassis system division of Continental AG. Both companies view the joint venture agreement, which affects their activities on the Japanese and Korean markets, as clearly strengthening their competitive position in the very promising Asian market.

The joint venture will be integrated totally into the Continental technology group. Nisshinbo will contribute its know-how, in particularly in the area of electronic brakes, and its customer connections. The joint venture, to be called Continental Teves Corporation, is to be expanded to a full-system supplier of brakes and chassis. Continental has a 51% and Nisshinbo a 49% holding in the JV.

"The tie-up with Continental Teves is a major boost for Nisshinbo's already thriving ABS business in the Japanese market", noted Akihiro Mochizuki, Chairman of Nisshinbo Industries, Inc.

The company has targeted sales of approximately EUR300 million in 2004/2005. In the eyes of Dr. Stefan Kessel, chairman of the board of Continental AG, "The move constitutes a major milestone in Continental Teves' globalization strategy."

Yukio Hosoya, senior executive director of Nisshinbo and Hans Albert Beller, who represents Continental Teves on the Continental board, view the consolidation of resources as a marked improvement in the performance and service available to Japanese and Korean customers. Around 120 engineers and technicians in the development area have a comprehensive and modern research environment at their disposal.

Nisshinbo Industries is a Japanese conglomerate with annual sales of EUR1.6 billion, with the brake business - largely ABS - accounting for 25% of sales. The company has 5,100 employees on its payroll.

With its 11,000 employees, Continental Teves, a major manufacturer of brakes and chassis systems for the automotive industry worldwide, realized sales of EUR2.48 billion in 1999. The company is part of the Continental Automotive Systems Group of the Continental AG, based in Hannover, Germany.

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