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Jürgen Otto: In consistent pursuit of our company strategy

Frankfurt, 09-16-2009

Despite a sluggish global market and considerably tougher pricing pressure in
the international supplier industry, the Brose Group has succeeded in further
expanding its market position.

Through the acquisition of the motors
business from Continental in April 2008, it has significantly expanded its
product portfolio and enhanced its mechatronic competence and value
chain.

In doing so, the company has today positioned itself as the only
supplier with comprehensive development and production competence regarding all
mechanical, electric and electronic components for the vehicle body and
interior.

Brose intends to use this leading technological position and
economies of scale gained from 100 million electric drives sold a year to
achieve further growth in light of increasing vehicle electrification,
particularly in the product segments of electric power steering, dual-clutch
transmissions or battery cooling management. The aim is to hold a top-ranking
market position in terms of technology, quality and cost effectiveness in all
business areas.

At the 2009 Frankfurt Motor Show (IAA), the company will,
for the first time, be presenting its larger product portfolio: apart from
mechatronic systems for doors and seats, this also includes electric drives for
window regulators, sunroofs and seatbelt retractors, drives for electronic
braking systems, drive train, electric power steering systems, HVAC blowers and
engine cooling.

2008: growth through expanding product
portfolio

Through the acquisition of the motors business from
Continental AG, sales revenues could be increased by 13% in 2008 with the new
business segment of drives contributing approx. 450 million euro to the
turnover.

After three quarters of strong growth in all business segments,
customer delivery requests dropped in the 4th quarter by up to 40% due to a
massive drop in vehicle production.

This strong decline in sales towards
the end of 2008 had a significant negative impact on earnings. It was possible
to avoid a loss by carrying out tough cuts in cost budgets and implementing
consistent personnel adjustment measures.

2009 sees low sales in
all business segments

Due to the steep decline in sales, the
high staffing level of 2009 with the company numbering more than 15,000
employees worldwide could not be maintained: during this period, Brose cut over
2,000 jobs in Europe and overseas, by employing fewer temporary staff and not
refilling vacant posts. There are currently approx. 13,000 employees working at
50 locations.

To increase competitiveness and to offset ever-increasing
costing pressure, numerous cost-saving measures were implemented at locations
worldwide. Moreover, in 2009, the company introduced short-time working at its
German locations and negotiated agreements with works councils aimed at reducing
labor costs.

At the same time, structural adjustments were introduced:
the motors plant in Gainesville/USA will be closed down in 2010 and production
capacities transferred to existing locations in North America. Moreover,
development and sales activities of the product area of cooling fan modules
previously located in Berlin will be integrated in Würzburg, where the drives
business division is based, by the end of 2009.

"In the crisis a company
can prove its worth by demonstrating how adeptly it responds to the declining
economic situation and by taking appropriate decisions. Even in difficult times,
we do not call the company’s long-term orientation into question," says Jürgen
Otto. He emphasizes that the exceptional solidarity within the workforce is
equally important. From production to administration – whether in Germany or in
China – cost-saving measures are spread fairly among all locations.

In
the past eight months, sales revenues were 20% below the level of the previous
year. As a slight increase is anticipated by the end of the year, the company is
currently expecting a group turnover of 2.5 billion euro for
2009.

Investments in the future

Despite the
current crisis, Brose will be investing in new products, technologies, qualified
managerial staff and employees in 2009. Approx. 160 million euro will be
invested in fixed assets, among other things, in expanding test facilities in
Coburg, in stepping up activities in China, Russia and India as well as in
expanding manufacturing facilities for product ramp-ups in the plants in Europe
and overseas. Moreover, the pace at which engineering and sales functions in
Asia and Eastern Europe are being set up is to be accelerated.

Budgets
for research and development as well as for training employees again constituted
approx. 10% of the turnover in 2009, a top-ranking value in this respect for
this industrial sector. Every tenth employee is engaged in the development of
new products and manufacturing processes. Brose will spend more than 12 million
euro in 2009 on personnel development and young talents.

The automotive
supplier has not decreased its number of apprentices this year. Currently there
are approx. 260 young people at six German locations being prepared for
assignments at locations in Germany and abroad.

In 2010, Jürgen Otto
anticipates slight growth in turnover – due to increasing demand in Asia and a
revival in the premium segment. Otto expects important impulses to come from the
IAA in Frankfurt which Brose – in contrast to many competitors - is
participating in, even in this year of crisis 2009: " We wish to achieve a
top-ranking position with our new portfolio as well and to convince our
customers of our capabilities, efficiency and performance by presenting
innovative product ideas," continues Jürgen Otto.

Long-term
orientation and stability can stand the test of difficult
times

Since the family-owned company of Brose was founded more
than 100 years ago, it has been geared towards long-term growth and stability.
Stability means continuity in ownership structures and a high self-financing
margin with regard to the company’s development. This has been achieved through
great cost discipline and modest withdrawals by the owners, resulting in a sound
equity base for the corporate group. "With this sound financial base and our
broader product range, we have created good preconditions for achieving further
growth," Jürgen Otto continues.

Brose innovations at the IAA
2009: mechanics, electrics and electronics - all from one
source

At Frankfurt’s International Motor Show 2009, Brose is
presenting a number of innovations which provide economical and technical
benefits for the automakers as well as making driving a car safer, more
comfortable and eco-friendlier. Apart from innovations in doors, seats and
electric motors, the company has developed three new products based on findings
from customer surveys; these will provide additional value for the end
customer.

Infinite manual door check

Particularly
in narrow parking spaces, conventional multi-step door checks limit the little
range of movement car drivers have anyway as it only permits two or three
defined opening angles. In the worst case, the door opens wider than intended
when someone is getting in or out of the car and collides with a neighboring
vehicle or garage wall. Brose’s infinite manual door check Variostop® holds the
door at the desired position exactly, even if the car is standing on an incline.
Optionally, there is a collision-detection feature to prevent damage to the
door: a sensor detects obstacles and the door stops immediately. Variostop® has
identical fixing points in the vehicle door, the same as many commercially
available solutions and provides package space-related and weight benefits for
the automakers.

Steering-wheel adjuster with power clamping
feature

For the first time, the company is presenting a
mechatronic steering-wheel adjuster at the 2009 IAA, which clearly enhances ease
of use and safety. Instead of pulling at a lever underneath the steering column,
the driver presses a pushbutton located directly on the steering-wheel to unlock
the power clamping feature. Letting of the pushbutton locks the steering-wheel
again. For safety reasons, adjustments are not possible during
driving.

The Brose steering-wheel adjuster combines the release mechanism
from closure systems with the holding principle from window regulator
technology.
Since this new kind of mechatronic drive technology can dispense
with elaborate mechanics, the Brose steering-wheel adjuster consists of much
fewer components. This results in less package space and weight savings of
around 800 grams compared to commercially available
systems.

Capacitive switch for liftgates and trunk
lids

Loading and unloading a vehicle is much more convenient
with the new capacitive switch for liftgates which the company will be
presenting for the first time at the IAA in Frankfurt. A sensor below the bumper
beam reacts to a simple foot movement and opens the trunk in conjunction with
the keyless-entry system.

This development allows Brose to offer the
automakers a complete convenience package for cargo management; from the latch
to the cinching function via the liftgate drive with anti-trap feature, the
power cargo floor with cover to the capacitive switch for touch-free opening and
closing of the trunk.


100 vehicle premieres at the IAA:
Brose is on board



In 2009 around 100 vehicles were presented
to the public at the IAA for the first time. Brose is on board with many new
presentations - with window regulators, doorsystems, seatsytems, closure systems
or electric motors and drives.

Press Contact Kommunikation Brose Gruppe +49 9561 21 1188 E-mail

Brose Fahrzeugteile GmbH & Co. Kommanditgesellschaft, Coburg Max-Brose-Straße 1 96450 Coburg

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