Growth of Automotive Supplier ZF Friedrichshafen AG Outpaces the Industry</h2><h3>Integration of ZF Sachs Strengthens Core Competencies

FRIEDRICHSHAFEN and STUTTGART, Germany, April 26 -- ZF Friedrichshafen AG, an automotive supplier group with worldwide operations, managed to grow in important customer sectors during 2001 despite the overall negative trend of the global economy. Sales increased by seven percent to 7 billion euros ($6.3 billion). The number of employees rose by two percent, and investments again reached a new high in the history of ZF at nine percent of sales.According to ZF CEO, Dr. Siegfried Goll, the purchase of automotive supplier Mannesmann Sachs AG in 2001 represents one of the most important milestones in the 87-year history of ZF. With this acquisition, ZF has grown into a new dimension: the company now ranks at number 15 among worldwide automotive suppliers. At the annual press conference on April 25, 2002 in Stuttgart, Dr. Goll announced that the company is now set for more value added in the core competency fields, greater importance in international markets and further economic growth.In the ZF Friedrichshafen AG 2001 Annual Report, the activities of ZF Sachs AG are consolidated only in the balance sheet, so that the Group shows a significant increase in the balance sheet total of 6.3 billion euros ($5.7 billion) (2000: 4.15 billion euros ($3.7 billion)). In the operating statistics shown in the annual report, especially in regard to sales and personnel, the figures for ZF Sachs AG are not included. Full consolidation will not be shown until the fiscal year 2002. On a comparable basis for 2001, this corresponds to total revenues of over 9 billion euros ($8.1 billion) for the ZF Group.The annual net income for the ZF Group in 2001 (not including ZF Sachs) totaled 150 million euros ($135 million), which fell short of the previous year's figure (177 million euros ($159 million)). This was essentially a result of the significant weakening in the worldwide economy, which was evident in the first quarter of the 2001 fiscal year.Success despite negative trends in the industry:The cooling down of the global economy in 2001 had an extremely negative impact on the automobile and vehicle manufacturing industry and this also influenced the sales and results of all ZF Group Divisions. In the Car Driveline Technology and Car Chassis Technology divisions, which together make up over 50 percent of ZF's total revenues, the growth rates were a welcome 19 percent and nine percent respectively.The Off-Road Driveline Technology and Axle Systems divisions managed to achieve a slight sales increase of one percent despite a very difficult economic situation in its target industries. In contrast, the Commercial Vehicle and Special Driveline Technology divisions were affected by the negative trends in the market, especially in North America, and recorded a five percent decline in sales.The Marine Propulsion Systems division was unable to post any growth because of the decline in demand for boat and ship transmissions. Aircraft Propulsion Technology posted a welcome increase of 13 percent.The Sales and Service Organization (aftermarket) improved its sales by seven percent. ZF Steering Technology, the joint venture of Bosch and ZF, increased its sales by five percent. Speaking at the annual press conference in Stuttgart, ZF CEO Dr. Goll emphasized, "Considering the business situation in key customer industries in 2001, the sales increase of seven percent achieved by the ZF Group is a respectable result."The two percent increase in the number of employees in 2001 was disproportionately lower than ZF revenues. At the end of the last fiscal year, the ZF Group (not including ZF Sachs) employed 37,261 people. The build-up in personnel occurred primarily in the Car Driveline Technology division and in Research and Development.High investment levels, strong engineering expertise, innovative products:The ZF Group again posted a new high in investments: Total 2001 investments of 598 million euros ($537 million) in property, plant and equipment (2000: 401 million euros ($360 million)) corresponded to nine percent of Group revenues.The major part of this total was invested by the ZF Car Driveline Technology and Car Chassis Technology divisions -- and used primarily to expand operations in Germany, the USA, France, and Mexico.Investments also went into the worldwide expansion of ZF capacities in Research and Development. This included new engineering centers opened in 2001. In March, the ZF Technical Center launched operations in Detroit, and a new R&D center for automatic car transmissions was opened in Friedrichshafen in July, which involved expansion of space and capacity at the main Research and Development Center in Friedrichshafen. At this location, engineers work on projects ranging from fundamental research to product development for various Group divisions.The traditionally strong ZF engineering expertise was evident again in the year 2001. A prime example is the world's first 6-speed automatic passenger car transmission developed by ZF -- in production since the summer of 2001. This transmission has already been introduced in the new 7-Series BMW and, since Spring 2002, in the new Jaguar S-Type.Acquisition and integration of ZF Sachs AG:Dr. Goll commented on the acquisition of Mannesmann Sachs AG, which took place in August and was approved by the European cartel authorities on November 20, 2001: "The new ZF Sachs AG is an important building block for ZF in the consistent expansion of the Group's technology leadership and the strengthening of its worldwide market position in driveline and chassis technology."The new scope of the ZF Group following the takeover is evident from changes in typical indices. For example, the number of employees increased substantially by 18,000 to nearly 56,000 -- as did the number of international plants, from 70 to 117. The ZF Group now operates in 22 countries across all continents.Although ZF Sachs AG was affected by the negative developments in the industry in 2001, the company was able to achieve sales growth of one percent to 2.1 billion euros ($1.9 billion) through its four business units Driveline, Chassis, Rubber/Metal and Aftermarket.Outlook for 2002:The global economy is not expected to improve significantly in 2002. Overall, ZF anticipates a further decline in key market sectors. In the automotive industry, primarily in Western Europe (cars and commercial vehicles), and North America (cars), ZF expects further reductions. Since these markets account for 90 percent of ZF Group sales, ZF expects only a slight increase in revenues in fiscal 2002. <pre> ZF Group January - March 2002

Sales in millions of euro (consolidated)($USD millions) Jan. - Mar. 2002 Change in % from Jan. - Mar. 2001

Car Driveline Technology 472 ($424) - 4%

Car Chassis Technology 448 ($402) + 13%

Commercial Vehicle & Special Driveline Technology 347 ($312) - 12%

Off-Road Driveline Technology and Axle Systems 271 ($243) - 1%

Powertrain and Chassis Components 568 ($510) + 4%

Marine 49 ($44) - 4%

Aircraft 12 ($11) + 2%

Aftermarket 118 ($106) + 13%

Steering Technology (50%) 201 ($180) + 6%

ZF Group 2,400 ($2,155) + 1%

Employees as of March 31, 2002 (including trainees)

ZF Group 55,838 +/- 0% </pre>