Bosch Automotive Aftermarket to Acquire the Friction Business of the Morse Group

Strengthening of the brake components program

Expansion of the aftermarket business with brake products, especially in North America

STUTTGART, Germany and CHICAGO, Sept. 2, 2008 - Bosch has announced it plans to acquire the brake friction business of the Morse Automotive Corporation headquartered in Chicago, Illinois. The price of the acquisition was not disclosed. The transaction is subject to the approval of antitrust authorities. The Morse Group develops, manufactures, and markets pads for disc brakes and linings for drum brakes, as well as brake calipers, predominantly for the North American market. In fiscal 2007, its 1,640 associates generated sales of $157 million (roughly 115 million euros).

"For us, the brake products business is a strategic growth area, and we consider brake pads to be a key element of this portfolio," said Robert Hanser, president of the Bosch Automotive Aftermarket division. "The acquisition of Morse's friction business is our entry into the production of brake pads, as well as an opportunity to expand our position in the North American market in a way which is consistent with our overall strategy." Bosch plans to take over existing contracts with customers of Morse.

New business unit formed for brake systems

The business acquired from the Morse Group is set to be integrated into the Bosch Automotive Aftermarket division, in a new business unit called Braking Systems. The Morse Group plans to continue all of its other existing aftermarket activities, such as the brake caliper business.

Apart from sales and marketing of automotive parts, the main focus areas of the Bosch Automotive Aftermarket division are automotive workshop equipment and the workshop concept Bosch Car Service. In fiscal 2007, the 5,000 associates of the Bosch Automotive Aftermarket division generated sales of approximately $4.8 billion (roughly 3.5 billion euros).