Dürr forms a strategic alliance in the field of testing systems for engine R&D

06/21/2001

• Letter of Intent on Joint Venture with the Japanese company Horiba Ltd., one of the world's leading suppliers of exhaust emission measuring systems
• Increased supply possibilities in vehicle R&D
• Ideal supplement of the technology and service offering
• Improved access to Japanese market and to other growing markets in Asia

Through its subsidiary Schenck Pegasus GmbH, Darmstadt, the Dürr Technological Group has signed a Letter of Intent on the participation of the Japanese company Horiba Ltd., Kyoto, in the Joint Venture Schenck Ricardo Systems Ltd., set up in February 2001. With the expansion of the Joint Venture which also includes the British development company Ricardo plc, Worcester, Dürr is to strengthen its technology and market position as a supplier of testing and R&D systems for vehicle and component development. The use of available sales structures will further improve access to customers in Asia.

Horiba Ltd. is one of the world's leading suppliers of sensors and systems for engine exhaust gas measurement. This company which in the fiscal year 2000 attained sales of 660 m euro, employing a staff of approx. 3,300, in a first step will own a share of 19 % in Schenck Ricardo Systems. Schenck Pegasus GmbH with a share of 57 % will take the entrepreneurial responsibility in the Joint Venture with headquarters in Worcester and signed with the firm name of Schenck-Ricardo-Horiba Ltd. Ricardo plc, one of the world's leading specialists in the development of engines, transmissions and vehicle electronics will own a share of 24 %.

»By the strategic expansion of the Joint Venture, we will not only gain engine R&D expertise but we will also have direct access to the know-how of exhaust gas measuring technology. In this way, our competence in development and implementation of automatic engine test systems is supplemented by an important key technology. Moreover, the partnership with Horiba constitutes a milestone with regard to strengthening our position in Japan and on other Asian markets", stated Frank Haun, member of the Board of Management of Dürr AG and chairman of the board of Carl Schenck AG, on the occasion of a press conference held today in Stuttgart within the framework of the trade fair »Testing Expo".

With the establishment of the Schenck-Ricardo-Horiba Ltd., Dürr/Schenck will have decisively better tools available for the development of worldwide applicable automation systems in engine R&D, which can be adapted with local partners to regional or customer-specific requirements.

The Joint Venture is part of the strategy of the Dürr Group to enlarge its system supply possibilities by the development of technological competence not only in the value-adding steps in car manufacturing but also in the development of com-ponents and vehicles. Within the framework of its »Life-Cycle-Strategy", Dürr of-fers far-reaching solutions for the entire car manufacturing process: from design of production processes and car manufacturing plants via the implementation of turn-key systems to the taking of responsibility in current operation.

The Dürr Technological Group is one of the world's leading suppliers of produc-tion systems and manufacturing support systems to the automotive industry and its component suppliers. The six business units Paint Systems, Automotion, Environmental, Ecoclean, Services and INTX and the Carl Schenck Group are organized under the aegis of Dürr AG, the strategic management holding company, and they are represented with operations in over 25 countries worldwide.

In the fiscal year 2000 Dürr AG increased sales by approx. 67 % to 2,042 m euro. EBITDA rose by 83.3 % to 119.8 m euro. Dürr expects sales and earnings to rise by double digit percentages with a proportionally greater increase in earnings for the current fiscal year.