Grammer Innovation Wins Key Volkswagen Systems Business; Requires Facility Expansions

ANN ARBOR, Mich., April 21 -- Grammer AG - Automotive, a leading supplier of specialty automotive seating systems, will provide an innovative mid-console system with integrated armrest on the new Volkswagen Passat.

With Grammer in the relatively new role of providing a complete system, the project includes the entire manufacturing process through to delivery to VW production lines. To guarantee just-in-time sequencing, Grammer will expand its existing production network and build two new assembly facilities, providing total-area capacity of about 10,000 square meters, directly adjacent to the Volkswagen facilities in Mosel (Zwickau/Saxony) and Emden (Lower Saxony). Approximately 130 jobs will be created to support the new business.

The Passat console system takes advantage of Grammer's technology excellence, which has made it one of the most "benchmarked" companies in its segment.

Eugen J. Geyer, Senior VP Automotive Business Divisions, notes: "Our professionally organized project-management team, consistent implementation of the international TS 16949 quality standard, and above all, our staff's enthusiasm and dedication, show that Grammer Automotive has succeeded in making a great step forward into systems leadership -- together with our clients at Volkswagen."

Grammer Automotive, a division of Grammer AG, designs and manufactures interior specialty systems for passenger cars and light trucks, including head restraint and armrest systems, child booster seat modules and other trim components.

Headquartered in Amberg, Germany, Grammer AG has 7,400 employees worldwide and manufacturing facilities in twelve countries. Sales for Grammer AG in 2002 year totaled $837 million, with approximately $100 million in North America.

Grammer has manufacturing facilities in Piedmont, S.C.; Queretaro and Puebla, Mexico; an office in Ann Arbor, Michigan, and is establishing engineering and program management capability in the Detroit area.

More information about Grammer Automotive is on the web at www.grammer.com .