Japanese Co. Akebono to Launch Brake Production Operations in China - Another Soon To Be Made In China Story

FARMINGTON HILLS, Mich., Dec. 10, 2003 -- Akebono Corporation, North America's leading supplier of advanced automotive brake friction materials and components, today announced its parent, Japan-based Akebono Brake Industry Co., Ltd., plans to establish production operations in China by the end of 2005.

Initial plans are for the Akebono operations in China to exclusively support Japanese automakers that are establishing manufacturing operations there. Products to be manufactured at the new facility will include friction materials and foundation brake components. A taskforce has been assigned to determine a site for the production operation in the Guangzhou area near Hong Kong. Akebono will export products from Japan to China to fulfill customer orders until production at its China facility is underway.

"China is the fastest growing automobile market in the world," said Kevin J. Alder, president and COO, Akebono Corporation North America. "We believe establishing a business foothold in China is key to supporting our valued Japanese customers who are expanding into this vast market. China sales will also play a role in Akebono reaching its worldwide growth goals during the next several years. We will be strongly positioned in all of the major vehicle markets across the globe."

Alder said a business plan on the China site selection, total investment and production volume could be completed as early as mid-2004. Akebono is strengthening its operations throughout Asia and also is evaluating opportunities in Thailand, Indonesia and Taiwan.

Akebono Corporation North America (ACNA) is a world leader in advanced brake and friction material development and production, with a focus on noise, vibration and harshness (NVH) analysis and control. ACNA is a subsidiary of Akebono Brake Industry Co., Ltd. (Tokyo) which operates technical/R&D centers in Japan, the United States and France, with 30 wholly owned or affiliated manufacturing facilities worldwide.

Akebono launched U.S. brake sales and production operations in 1980. Worldwide, Akebono employs a total of 6,800 people; 1,900 in North America. In 2002, Akebono's worldwide sales totaled $1.34 billion. Sales in Japan totaled $750 million; North American sales totaled $586 million, including $314 million through unconsolidated joint ventures; and European sales totaled $16 million. For more information visit www.akebonobrakes.com .