AVL Acquires Engine Developer Schrick GmbH

AVL Expansion Continues in the Wake of Recent Acquisitions of Grundig AG's Auto Instrumentation Group and Pierburg Instruments GmbH

GRAZ, Austria, Feb. 25 -- AVL, a global supplier of powertrain engineering and instrumentation systems, today announced its completion of the acquisition of engine development company Schrick in Remscheid, Germany, with U.S. operations based in Osceola, Wisconsin.

The move is one in a series of recent acquisitions intended to bolster AVL's position as the leading supplier of powertrain engineering and instrumentation around the world. According to Don Manvel, AVL North America CEO, "AVL is growing rapidly, with Europe leading the way. Our North American operations are expanding rapidly as well as evidenced by the recent groundbreaking of our new technical facilities in Ann Arbor, Michigan."

Schrick GmbH has developed internal combustion engines and related components and systems for more than 30 years. Schrick's core competency began with motorsports, but has since expanded to include extensive production vehicle programs. Additionally, Schrick technology is used for military and industrial applications, including a prototype twin-cylinder diesel engine developed for drone aircraft which weighs 53 lbs. and produces 46 horsepower, giving it a world record for power density in its class.

Ford, Volkswagen and major OEM suppliers all use Schrick technology. Schrick has been awarded Q1 status by Ford Motor Company.

The V6 4.0L engine for the Explorer and the Ford 1.0L SOHC for the Brazilian, South African and Indian markets are both Schrick-developed products.

Schrick develops and engineers engines that range from one to more than 12 cylinders and from two horsepower to more than 1,000 horsepower.

The long-term cooperation of both companies is underlined by Schrick's continued utilization of the AVL testing facilities.

The acquisition brings the advanced technical competence of Schrick GmbH under the umbrella of AVL's global presence and aligns with AVL's strategy of locating near their OEM customer facilities as they expand operations around the world.

AVL's purchase is in addition to recent acquisitions of the automotive instrumentation division of Grundig AG and Pierburg Instruments GmbH, both based in Germany and having operations in the United States. According to Helmut List, Chairman and CEO of AVL List GmbH, "The growth of AVL's business in Germany corresponds with the enormous significance of this country in the global automotive market."

In other world markets, AVL is also expanding through acquisition and growth. In September 2002, the addition of MTC in Sweden added substantial strength to the operations in Northern Europe, while the development of AVL's technical center in Shanghai continues in line with the importance of growing Asian markets.

AVL is the world's largest privately owned and independent company for the development of gasoline, diesel, alternative fuel powertrain systems, as well as fuel cell and hybrid technologies. The company also manufactures powertrain instrumentation and test systems. Close cooperation with customers is guaranteed by affiliates and local offices worldwide. AVL's North American Headquarters is located in the Detroit suburb of Plymouth, Michigan.