Tractech/McLaren to Explore the Tractive Differential Market Together

4 November 1999

Tractech/McLaren Traction Technologies Agree to Explore the Tractive Differential Market Together; Gerodisc Product Slated for Niche Vehicles and the Aftermarket

    LIVONIA, Mich.--Nov. 3, 1999--McLaren Traction Technologies, a leader in the design and development of advanced automotive traction control systems, and Tractech, a leading manufacturer and marketer of differential systems for the automotive aftermarket, have announced they will seek to combine efforts to bring McLaren's patented Gerodisc(TM) technology to aftermarket and niche market applications.
    Tractech, a Delco-Remy company, is widely known for products such as the famed Detroit Locker(R), Truetrac(R) and Detroit Gearless Locker(TM). McLaren Traction Technologies' Gerodisc(TM) is a patented, state-of-the-art traction control device, featuring a unique, tunable system that continuously monitors driving conditions and changes the power distribution to each driving wheel accordingly.
    Until now, Gerodisc(TM) applications have been limited to licensed vehicle manufacturer production applications, including DaimlerChrysler's Jeep Grand Cherokee and the recently announced Ford Mustang Cobra R.
    Ralph McGee, president of Tractech feels the Gerodisc(TM) opens important new opportunities for Tractech. "Tractech is known for having cutting edge traction products for enthusiasts and high performance applications. McLaren's reputation for quality makes this a product that we feel has great potential for us in the aftermarket. The fact that both of our companies are SEMA members, and that we combine ISO and QS certification, makes this a logical fit."
    Wiley McCoy, president of McLaren Automotive Group, indicated that this joint effort follows McLaren's strategy of pursuing continued growth of Gerodisc(TM) systems. "McLaren continues to seek new applications for this revolutionary technology. The aftermarket is the next logical step for us, and having a relationship with Tractech is a major step in reaching this important market."
    Both companies indicated that there are many steps to be completed before a product is brought to the aftermarket, but that together the companies were well suited to develop this market and to seek additional niche vehicle applications for Gerodisc(TM).
    "McLaren has an ongoing effort to work with OEM's and Tier I suppliers on Gerodisc(TM) applications. Tractech's proven manufacturing expertise, coupled with our own unique powertrain and engineering capabilities, allow us to develop and produce the same quality products for aftermarket and niche markets as now provided for OEM automakers," McCoy said.
    McLaren Traction Technologies is a 1999 Automotive PACE (Premier Automotive Suppliers Contribution to Excellence) Award winner for its patented Gerodisc(TM) traction control system. Designed and developed by the company's McLaren Traction Technologies division (formerly ASHA Corporation), Gerodisc(TM) is currently under license to tier one and OEM companies. It is in production as a key component of DaimlerChrysler Jeep's Grand Cherokee, used in the Jeep Quadra-Trac II transfer case and the Jeep Quadra-Drive full time four wheel drive system. McLaren Traction Technologies emerged as a winner from a record field of over 89 competing companies.

    This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created thereby. These statements include the plans and objectives of management for future operations, including plans and objectives. The forward-looking statements herein are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgements with respect to, among other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond control of the company. Although the company believes that the assumptions underlying the forward-looking statements are reasonable, any one of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this release will prove to be accurate.

    McLaren Engines and McLaren Traction Technologies are divisions of McLaren Automotive Group. The stock is traded on the Nasdaq Small Cap Market .