Garrett Invests $60M in VNT Turbochargers for Europe's Diesel Market

      Rising Gas Prices, Environmental Legislation Fuel Consumer Demand;
                       U.S. Diesel Market Also Growing

    TORRANCE, Calif., March 5 To satisfy increasing customer
demand for diesel-powered vehicles, Garrett Engine Boosting Systems will
invest US$60 million this year in the European diesel market to boost capacity
of its Variable Nozzle Turbine (VNT) turbochargers.  Garrett's VNT
turbochargers are quickly becoming the state-of-the-art option in Europe for
diesel-powered passenger vehicles and light trucks.  At the same time, the
U.S. market for turbo diesel powered vehicles is experiencing a marked
upswing.

    Why the investment?  Today in Europe, automakers can barely keep up with
diesel demand as improved technology, rising fuel prices, and increasingly
stringent environmental legislation reshape the public's buying preferences.
The improvement in diesel engine design has significantly reduced exhaust
emissions, while enhancing vehicle performance capabilities.  Vehicles
equipped with diesel engines now account for 4.9 million units in Europe, or a
record high of 33 percent of the market.  By 2006, experts predict the number
may top 7.3 million units, or 47 percent.  That's not surprising since diesel
fuel sells for approximately 35 percent less per gallon than gasoline in
Europe, and offers up to 50 percent better fuel economy.

    "As a leader in variable geometry turbine technology with our VNT
turbochargers and a pioneer in Electrically Assisted Turbochargers, Garrett
will continue to play a major role in the expansion of the diesel segment in
Europe," said Rob Gillette, president of Garrett Engine Boosting Systems.  "We
believe our technological expertise can provide significant benefits to our
customers in the United States.  Our European experience will further allow us
to capitalize on the growing interest for diesel engines here," Gillette
concluded.

    A relatively recent invention and well received by auto manufacturers,
Garrett VNT turbochargers made significant contribution to the design of new
generation diesel engines.  Diesel engines with Garrett's VNT technology are
more responsive, powerful, fuel efficient and cleaner than traditional
wastegate turbocharged engines.  They also offer more torque and better
driveability than their predecessors.

    "In some European markets, such as France, diesel penetration has already
reached 49 percent, and is expected to climb to 60 percent by mid decade,"
said Bert Snijders, vice president and general manager of Garrett Europe.
"Today, approximately 33 percent of small diesel engines in Europe are
equipped with Garrett VNT turbochargers.  Other European nations, including
Germany and Italy, represent tremendous growth potential.  This is primarily
because Garrett VNT turbochargers help boost output in a cost-effective
manner, and in turbodiesel engines, torque output is far greater than with
gasoline engines."

    Garrett's VNT turbochargers adjust the gas cross section at the inlet of
the turbine wheel in order to optimize turbine power with the required load.
At low engine speed and small gas flow, Garrett VNT turbochargers reduce the
cross section, increasing turbine power and boost pressure.  At full engine
speed/load and high gas flow, the VNT turbocharger increases cross section,
avoiding turbocharger overspeed and keeping the boost pressure level required
by the engine.  The cross section modulation can be controlled directly by the
compressor pressure through the use of a pressure actuator, or by the engine
management system using a vacuum actuator.

    Over the last 10 years in Europe, CO2 emissions from road vehicles have
climbed by more than 10 percent, with passenger cars accounting for much of
that growth.  By 2008, the goal in Europe is to cut average CO2 emissions in
cars by about one third.  Since CO2 emissions are the result of hydrocarbon
fuel combustion, and cannot, like noxious emissions, be reduced through the
catalysation process, the only solution is to burn less carbon.  Since VNT
turbochargers deliver more air to diesel engines, the fuel combustion process
is cleaner and more complete, which will help Europe meet its goal.