Schenck Pegasus Joint Venture with British Systems Developer Ricardo plc; Schenck Buys the Ricardo Company: Ricardo Test Automation Ltd. - RTA

    DETROIT--March 7, 2001--Two world leaders in the field of automotive test systems, the Schenck Pegasus Division of Schenck AG and Ricardo plc, have formed a joint venture, Schenck Ricardo Systems Ltd.
    The new business joins the test and automation technology of Schenck Pegasus with Ricardo's experience in developing automotive testing tools and systems. Schenck Pegasus supplies test and development systems for vehicles and components. Ricardo develops engines, transmissions, vehicles and vehicle electronics for automakers worldwide.
    A unit of German industrial conglomerate Durr AG, Schenck Pegasus is headquartered in Darmstadt, Germany. North American operations are based in Troy, Michigan. Ricardo is based in Shoreham-by-the-Sea, England. Schenck holds a 70% stake in the new joint venture, Ricardo 30%. Marketing will be handled by Schenck's global sales and service network under the brand name of Schenck Ricardo.
    "This joint venture gives us direct access to Ricardo's know-how in engine development," said Frank Haun, President and CEO of Carl Schenck AG and Member of the Board of Durr AG. "We expect that this know-how will form the basis for further development of our test systems. Schenck and Ricardo are now in a unique position to offer the automotive industry complete test centers from design and construction to operation. Thus we are able to leverage the scope of our supply lines and the needs of our customers. This will strengthen our leading position worldwide in test and automation technology."
    In a related agreement, Schenck is buying the Ricardo company. RTA, with 70 employees, RTA develops and manufactures automotive testing tools and systems. Ricardo is also transferring to the joint venture its leading-edge data management software package TDM.
    "We are very pleased to be working with Schenck," said Rodney Westhead, Ricardo CEO. "The combination of Ricardo and Schenck will create one of the most powerful automotive testing systems software companies in the world."
    Schenck Ricardo Systems Ltd., will be based in Worcester, England.