Johnson Electric Acquires Seat Motor Business from ArvinMeritor

    HONG KONG, Aug. 16 Johnson Electric today announced that
it has entered into an agreement to acquire certain select manufacturing
assets of the automotive electric seat motor business of ArvinMeritor's Light
Vehicle Systems division.  Terms of the sale were US$11.7 million.

    ArvinMeritor currently manufactures seat motors at plants in Esson,
France, Queretaro, Mexico and Gordonsville, Tenn., USA.

    Johnson Electric plans to consolidate all seat motor production at the
Johnson Electric manufacturing complex in Shajing, China.  The seat motor
manufacturing assets of ArvinMeritor will be completely transferred to Johnson
Electric in China by mid-2002.  During this transition period, ArvinMeritor
will act as a manufacturing subcontractor to Johnson Electric to ensure
continuity of motor supply.

    According to Jim Dick, director of Strategic Marketing for Johnson
Electric, "This business acquisition supplements our existing growth strategy,
and provides Johnson Electric with an entry into a high growth segment of the
automotive industry.  We expect to attain sales of US$50 million in the first
year."