Yazaki Announces Joint Venture Agreement With Siemens AG

    CANTON, Mich., March 26 Yazaki Corporation, a leading
global Tier One supplier of electrical distribution systems and electronic
components to the automotive industry, today announced an agreement with
Siemens Automotive AG, that builds upon both companies' core strengths in
order to provide complete, state of the art integrated E/EDS systems for their
combined businesses at Ford, BMW and Renault worldwide.  "This agreement to
create three joint ventures furthers Yazaki's commitment to providing complete
systems and enhances our current global leadership position in the wire
harness and components business," said Shinji Yazaki, executive vice president
of Yazaki Corporation.  This transaction still requires regulatory and other
approvals, which are expected to be completed by July 2001.
    
    Two joint ventures, based in Germany and the USA, will be formed to
provide the development, program management and sale of integrated vehicle
electronic/electrical distribution systems.  These are 50/50 joint ventures
with the majority of the workforce coming from Yazaki's Detroit and European
operations and Siemens' Regensburg (Germany), Toulouse (France) and Detroit
operations.  By pooling these resources, the two companies will hold a strong
position in the emerging market for the integration of vehicle electrical and
electronic systems, which are increasingly in demand with vehicle
manufacturers.  A management board with equal representation from both
shareholders will oversee these two new companies.

    The third joint venture to be created is for the manufacture of vehicle
wiring harnesses with Yazaki having a 75 percent share and with Siemens at
25 percent.  This will include current Siemens manufacturing locations in
Slovakia, the Czech Republic, Lithuania, India, Turkey and Brazil.  "With
Yazaki's leadership in the manufacture of wire harnesses, along with the
increased presence in Europe, this alliance strengthens our global core
business and broadens our customer base," said Shinji Yazaki.

    Siemens Automotive AG, a 100% subsidiary of Siemens, employs a workforce
of 30,000 in its core business of automotive electrics and electronics and
comprises over 80 locations, covering all the world's major automotive
markets.  The company is a development partner and supplier for the
international automotive industry, providing electrical and electronic systems
and components for engine management, (including direct gasoline and diesel
injection), for transmission and chassis controls, and also for body and
safety electronics with the focus on airbag systems.  Further areas of
activity include electrical distribution systems, driver information, electric
motor drives and drive systems for electric vehicles.  In the fiscal year 2000
(ended September 30) new orders and sales rose to euro 3.8 (last year 3.3)
billion and an EBIT (Earnings Before Interest and Taxes) of euro 91 (last year
159) million was achieved.