Continental Sees Increased Electronic Stability Control Installation Rates for Model Year 2006 Vehicles

AUBURN HILLS, Mich., Oct. 27, 2005 -- Continental is launching production for several new electronic stability control (ESC) programs in North America on model year 2006 vehicles. Currently there are 51 model year 2006 vehicles in North America now available with Continental's ESC, an increase of eleven models over last year. ESC growth is part of a broader overall trend of an increase in the use of electronic brake systems in the North American automotive market -- more than 75% of all vehicles will now have an electronic brake system, which includes anti-lock brakes and traction control. ESC works as a component of the Electronic Brake System to help reduce the risk of serious crashes, including rollovers.

Continental, a leading global manufacturer of electronic stability control technology, projects that it will supply more than 2.2 million ESC units to automakers in North America in calendar year 2006, an increase more than 80 percent over expected deliveries for calendar year 2005.

"This is excellent news for everyone interested in keeping America's roads safer," said Bill Kozyra, president and CEO, Continental Teves North America, observing the increase in ESC applications in North America. "NHTSA announced last fall a 67% decrease in single vehicle crashes in SUVs equipped with ESC, and in passenger cars, a reduction of 35%. These results are concurrent with earlier studies by the Insurance Institute for Highway Safety (IIHS), the University of Iowa, and in Europe and Japan that have shown ESC is proven to reduce single-vehicle crashes significantly. We've been working with our customers to help educate them about the technology, and also with consumers, about the benefits of ESC, so they know to ask for it on their next vehicle."

IIHS also recently announced that adding ESC to cars and SUVs significantly lowers insurance losses for crash damage to insured people's own vehicles. Collision coverage losses were 30 percent lower for SUV models with ESC than for previous models of the same SUVs before the technology was added. Losses went down 16 percent for luxury cars and 13 percent for sports cars (most cars with ESC are in these two groups).

Continental has begun or will soon begin production of ESC systems on nine new model year 2006 vehicles in North America (listed below), and will continue to provide ESC to a number of automakers as carry-over programs from model year 2005 vehicles.

  New Continental applications for model year 2006 include:

  Model                   Retail Name for ESC Technology
  *  BMW M3               (Dynamic Stability Control)
  *  BMW M5               (Dynamic Stability Control)
  *  Dodge Charger        (Electronic Stability Program)
  *  Honda CR-V           (Electronic Stability Control)
  *  Infiniti QX56        (Vehicle Dynamic Control)
  *  Jeep Commander       (Electronic Stability Program)
  *  Volkswagen Golf      (Electronic Stabilization Program)
  *  Volkswagen Jetta     (Electronic Stabilization Program)
  *  Volvo XC70           (Dynamic Stability and Traction Control)

Electronic stability control significantly improves vehicle stability in all three primary areas of vehicle performance: accelerating, cornering and braking. Using electrical sensors strategically placed throughout the vehicle, the system analyzes steering wheel activity, wheel speeds, acceleration and the vehicle's rotation about its vertical axis and continually analyzes this data to determine whether the actual course of the vehicle corresponds to the desired direction. By braking individual wheels and reducing engine torque, it automatically corrects understeer and oversteer, and helps keep vehicles on the road.

With 2004 sales of approximately $15.6 billion (US), Continental AG is a major supplier of brake systems, chassis components, vehicle electronics, tires and technical rubber products. Continental Automotive Systems' North American operation is headquartered in Auburn Hills, Mich. and is a leading global supplier of quality automotive systems that contribute to driver safety, comfort and peace-of-mind. For additional information, visit our media website http://www.contitevesna.com/index2.htm .

Company News On-Call: http://www.prnewswire.com/comp/437525.html