TRW Wins Contracts for Vehicle Stability Control Technology

    LIVONIA, Mich., Sept. 6 TRW Inc. announced
today it will supply the advanced Vehicle Stability Control (VSC) system for
the Fiat Lancia Thesis this fall, to be followed by VSC introductions with
three European vehicle manufacturers on premium platforms.  The contract
values are not disclosed.  These new contracts establish a proven significant
presence for TRW for VSC systems, particularly in Europe.

    Although VSC systems have been in production in Europe for some time, the
technology was slower to surface as a requirement among North American vehicle
manufacturers.  However, TRW stepped up to the North American market to meet
customer demand in record time, being the first automotive supplier to market
with VSC systems for the demanding North American-designed Sport Utility
Vehicles (SUVs) and minivans.  TRW is currently producing VSC systems for the
General Motors Cadillac Escalade SUV and will start production of VSC systems
for the Windstar minivan within the next year.  VSC is occasionally referred
to as Electronic Stability Program or ESP.

    "To have been first to market for VSC systems on a North American-designed
SUV is a significant achievement," said Phil Cunningham, product director,
chassis controls, TRW Chassis Systems.  "It is a testimony to TRW's technology
leadership and drive to meet our customers' needs."

    "In Europe, we foresee 30 percent of vehicles fitted with VSC systems by
2005 and in Germany, close to a 100 percent fitment rate.  More broadly, for
"slip control" products, in Europe there are currently discussions to mandate
fitment of ABS to all vehicles.  Already, in Italy, it has been decided that
all vehicles sold after 2003 will be required to have ABS fitted.  This
important ABS requirement in Europe will ultimately lead to increased fitment
rates for VSC systems as well."

    TRW's VSC system combines the capabilities of ABS and Traction Control
(TC) with a lateral stability control feature.  This VSC system improves
vehicle handling during severe driving maneuvers by building upon ABS and TC
functions.

    TRW's new Electronic Brake Control (EBC) 440 unit, the latest VSC system
in TRW's portfolio of slip control products, offers improved performance with
enhanced features that offer valuable underhood space-saving, dramatic weight
reduction, flexible left/right drive fitment, passive safety enhancement, as
well as potential cost savings for vehicle manufacturers.

    VSC systems are a further step in the evolution toward brake-by-wire
systems of the future.  The technology used in Electro-Hydraulic Braking
(EHB), a brake-by-wire system, has evolved from ABS and VSC systems.  TRW is
already at the forefront of development of brake-by-wire systems, using its
expertise in conventional braking systems and applying it to the development
of brake-by-wire technology.  TRW announced production contracts with two
major European vehicle manufacturers for EHB and a development contract with a
leading North American vehicle manufacturer to develop regenerative braking
based on an EHB system, proving customer confidence in these TRW advanced
systems.

    Both VSC and EHB systems can be taken further into the evolution of more
Integrated Vehicle Control Systems (IVCS).  Integrating the two technologies
and sharing electronics, sensors, and software will result in improved
performance and increased functionality.  By applying TRW's proven VSC
software and systems integration expertise, the goal is to achieve significant
improvements in performance, safety, comfort and cost.

    TRW's highly developed VSC system can also assist in rollover situations.
In North America, the National Highway Transportation Safety Agency (NHTSA)
has been investigating rollovers on trucks and SUVs, one of the situations
that TRW's VSC system is designed to help combat.  TRW is poised to help
automakers meet anticipated U.S. federal requirements under the new
Transportation Recall Enhancement, Accountability, and Documentation (TREAD)
Act.  If a vehicle is fitted with TRW's VSC system and Active Roll Control
(ARC) system, a significant improvement in stability and control can be
achieved.

    TRW will manufacture the VSC system for the Fiat Lancia Thesis at its
plant in Heerlen, The Netherlands.

    TRW Chassis Systems is a world leader in braking systems, steering and
suspension systems, commercial steering, engine components and aftermarket
replacement parts for the global automotive industry.