ZF Sales Up Three Percent in 2002

FLORENCE, Ky., April 29 -- ZF announced today at its annual press conference in Stuttgart, Germany, that it increased sales by three percent during 2002 -- to a total of $10.1 billion (9.2 billion euro) worldwide.

The leading worldwide automotive supplier of driveline and chassis technology also announced that it now employs 53,300 people worldwide -- an increase of two percent from the previous year. With investments equivalent to 7.6 percent of annual sales, ZF continues to strengthen its position as an industry leader.

"In light of the economic conditions and the overall situation in the industry, ZF divisions performed better-than-expected in 2002," said Dr. Siegfried Goll, Chief Executive Officer, ZF Friedrichshafen AG. "Our technological leadership position will be the key to ZF success in the upcoming years."

Dr. Goll added that investments in property, manufacturing facilities, equipment and new product development, a total of $767 million (698 million euro), was reflected in the sales figures during 2002.

As part of a $700 million investment in North America between 2002 and 2004, ZF has recently expanded or is currently expanding manufacturing facilities in Chicago; Duncan, S.C.; Northville, Mich.; Tuscaloosa, Ala.; and Guadalajara, Mexico.

ZF currently operates 33 facilities in 27 locations within the NAFTA region and employs a workforce of 7,300. By 2005, according to current plans, the NAFTA region will account for 30 percent of ZF worldwide sales. The company expects employment to increase proportionately with sales.

The economic situation in key ZF markets -- Western Europe and North America -- which account for 90 percent of sales, is not expected to significantly improve in 2003. ZF expects major challenges in 2003, but has implemented measures to reduce costs and increase productivity. In addition, the company plans to invest $715 million (650 million euro) this year on research and development.

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 53,300 at 119 locations in 25 countries, and combined revenues for the group totaled more than $10 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.