ArvinMeritor Wins Appeal in Transmission Patent Infringement Suit

TROY, Mich., April 3 -- ArvinMeritor, Inc. announced today that it won its appeal in the patent infringement suit brought by Eaton Corp. against ZF Meritor's Engine Synchro Shift(TM) (ESS) transmission system. The Court of Appeals for the Federal Circuit reversed the decision of the Delaware trial court and found that ArvinMeritor did not infringe on the Eaton patent.

"We are pleased that the Appellate Court ruled in ArvinMeritor's favor and dissolved the injunction," said M. Lee Murrah, chief patent counsel of ArvinMeritor. "ArvinMeritor, and its predecessor Rockwell International Corp., have believed from the beginning that Eaton's position was unwarranted, and the Court of Appeals agreed."

"This is a significant victory for our transmission business and, more importantly, for our customers," said Tom Gosnell, president of ArvinMeritor's Commercial Vehicle Systems business and board member of the ZF Meritor joint venture. "Our advanced technologies are completely vindicated, and we will continue to rigorously defend ourselves against any company that tries to stifle our technological advancements for the commercial vehicle industry."

The Court of Appeals narrowed Eaton's overly broad interpretation of its patent. As a result, Eaton cannot apply its patent against ArvinMeritor's ESS transmission or any other transmission that does not contain the structures listed in the patent claim, according to the ArvinMeritor's outside legal counsel, Welsh & Katz Ltd.

Following the initial lawsuit filing by Eaton in July 1997, ZF Meritor -- a joint venture created in 1999 between ArvinMeritor and ZF -- was forced in September 2001 to remove ESS from the market, following the initial verdict in the competitor's favor.

"This type of legal action by Eaton prevented the industry and our North American customers from enjoying the unique benefits of ESS during the past 18 months and attempted to create a doubt on our advanced shift systems," said Rick Martello, president of ZF Meritor. "Now, we must assess the practicality of re-introducing this shifting feature on our transmissions."

ArvinMeritor offers a wide range of transmission products produced by its ZF Meritor joint venture: 9-, 10-, and 13-speed manual transmissions, as well as the ESS, SureShift(TM) and FreedomLine(TM) automated manual transmissions for heavy-duty Class 8 trucks.

Operating with a 53,700 workforce at 119 locations in 25 countries, ZF is a major supplier of driveline and chassis technology to the world's automotive industry. In 2002, ZF achieved a sales figure of more than 9 bn euro, which means that ZF is in fifteenth place in the ranking of the world's biggest automotive suppliers.

ArvinMeritor, Inc. is a premier $7-billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets. In addition, ArvinMeritor is a leader in coil coating applications. The company is headquartered in Troy, Mich., and employs 32,000 people at more than 150 manufacturing facilities in 27 countries. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. For more information, visit the company's Web site at: www.arvinmeritor.com .

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