ZF Adjusts Management Structure to Support Growing Asian Business

FRIEDRICHSHAFEN, Germany, April 2 -- ZF announced today that it has shifted executive management responsibility to support its growing business within the Asian market. Effective April 1, 2003, Hans-Georg Haerter - Group Executive Powertrain and Suspension will additionally assume responsibility for the Asia-Pacific Region.

The region comprises all ZF activities in China, Korea, Japan, Southeast Asia and the Pacific Region, and complements existing NAFTA and Mercosur markets. ZF owns 30 production, sales and service, and trading locations in the region -- compared with 27 locations in North America -- another emerging market.

"The Asian market is growing at a very rapid rate and this move positions ZF as a leader in the region. It is an essential part of our worldwide growth strategy," said Dr. Siegfried Goll, Chief Executive Officer, ZF Friedrichshafen AG.

As part of the move, Dr. Michael Paul - Executive Vice-President, Technology will take over Production Technology from Haerter, while Wolfgang Vogel - Executive Vice-President, Commercial Vehicle and Special Driveline Technology Division will take over Marine Propulsion Systems.

Additionally, Vogel will assume responsibility for the Aviation Technology business unit from Dr. Goll.

ZF Friedrichshafen AG is a leading worldwide supplier of driveline and chassis technology. Headquartered in Friedrichshafen, Germany, ZF is the 15th largest automotive supplier in the world. The company has a total workforce of 54,000 at 119 locations in 25 countries, and combined revenues for the group totaled more than $9 billion in 2002.

With sales of more than $2 billion in 2002 ZF expects NAFTA region annual sales of more than $3 billion by 2004. ZF Group North American Operations are headquartered in Florence, Kentucky.