ZF Friedrichshafen AG Buys Automotive Supplier Sachs

    FRIEDRICHSHAFEN, Germany, Aug. 3 ZF Friedrichshafen AG,
Friedrichshafen, is acquiring the automobile supplier Sachs from Siemens,
according to an agreement reached today.

    Through this acquisition, ZF is reinforcing its position as one of the
world's largest automotive suppliers of transmission and chassis technology
and is increasing its sales volume from Euro 6.5 billion (US $5.7 billion) to
Euro 8.6 billion (US $7.6 billion) (based on year 2000 figures) and its
workforce by more than 18,000 to about 55,000 employees.

    Chairman of the board and CEO of ZF Friedrichshafen AG, Dr. Siegfried
Goll, on the significance of this acquisition: "Sachs is a renowned company
and with its comprehensive know-how an excellent reinforcement in product
segments relevant for ZF.  As a competent partner of the international
automobile industry, the ZF Group is reaching a new order of magnitude with
this acquisition."

    The board of Mannesmann Sachs AG welcomed the decision.  "ZF and Sachs are
a perfect match.  Both companies are technology leaders, they have a similar
tradition and their portfolios supplement each other in a meaningful way",
said Hermann Sigle, Vice Chairman of the board of Mannesmann Sachs AG.  "This
also ensures our long-term growth potential."

    With the acquisition of Mannesmann Sachs AG, the ZF Group is improving its
global market position.  The acquisition comprises the four Sachs divisions --
powertrain, chassis, rubber-metal (Boge) and Sachs Handel (the trading
business).  Stabilus GmbH, a world leader in gas springs, is not included in
the acquisition.