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Ecostar Poised to Join Electric Powertrain Efforts With Carraro

13 July 2000

Ecostar Poised to Join Electric Powertrain Efforts With Carraro

    DEARBORN, Mich. - Ecostar Electric Powertrain and Power Conversion Systems 
and Carraro SpA have announced today the signing of a Memorandum of 
Understanding to establish a cooperative effort to combine their capability in 
electric powertrain design and assembly.

    "We are very pleased to be joining our efforts with Carraro.  Our combined
expertise in design and manufacturing will result in high quality and
affordable electric powertrains for our customers," says Ross Witschonke,
President and CEO of Ecostar.

    The cooperative effort is intended to include the design and joint
assembly of electric powertrains to meet the needs of Ecostar's and Carraro's
customers for on road and off road vehicle applications.

    "This new relationship with Ecostar represents a further step for Carraro
to offer high quality and technologically advanced products to our customers,"
says Mario Carraro, Chairman and CEO of Carraro.

    The Memorandum of Understanding is subject to negotiation and execution of
definitive agreements.

    Ecostar was formed in 1998 and is part of the Fuel Cell Alliance formed
between Ford Motor Company, Ballard Power Systems and DaimlerChrysler.  Ford
owns 62 percent of Ecostar, while DaimlerChrysler and Ballard own 17 percent
and 21 percent, respectively.

    Ecostar is the primary development center for the alliance's power
electronics and electric powertrains.  Ecostar's specific areas of expertise
include electric power conversion, mechanical design, hardware and software
for motor and vehicle controls, and system integration.  Ecostar's systems and
components are applicable to all types of electric vehicles, including fuel
cell powered, battery, and hybrid electric vehicles.  Ecostar also develops
power inverters and controls for stationary power generation.  Ecostar is
located in Dearborn, Michigan, with offices in Germany and Canada.

    With consolidated turnover of L625bn (1999), Carraro is a world leader in
automotive drivetrain systems for on- and off-highway applications.

    The focus on innovation and differentiation has led to the introduction
and development of a wide range of new, high-technology and high-quality
products, including differential axles, transmissions, drivelines, reduction
units, differentials and clutches.

    Carraro has developed long-term relationships with its customers, as
preferred partner in the development of innovative drivetrain systems.  That's
why Carraro's products have come to be preferred by the world's leading
manufacturers of tractors, construction equipment, industrial forklifts, light
commercial vehicles and cars, such as CNH (Case New Holland), Caterpillar,
John Deere, Agco, Renault, Komatsu, Terex, NMHG, Linde, Clark, Fiat and Kone.

    The Group's industrial strategy is to establish a special relationship
with its customers around the world, pursuing a real globalization process.

    Under the recent internationalization process, Carraro now has 12
production plants around the globe, in Italy, India, Poland, Germany,
Argentina, Korea and the United States.