Grammer Posts 2002 Earnings; Shows Impressive Growth

ANN ARBOR, Mich., June 3 -- Grammer AG, of Amberg, Germany, a leading supplier of automotive interior specialty systems, reported 2002 group sales of $837 million, up from $775 million in 2001. Net income was steady at a strong $24.7 million, on par with the previous year.

With a solid book of business already posted, Grammer recently was awarded a major program for the next Volkswagen Passat's center console and armrest assembly. The contract is significant in that it is the first time that Grammer's Automotive division will act as systems lead for the development of this new product. Production will begin by year-end 2004, and is scheduled to run seven to eight years, totaling more than $375 million in sales.

"We remain confident that, even with uncertain economic factors and fluctuating exchange rates, Grammer will continue to perform in accordance with a plan for steady growth, while also investing in new technologies and innovation," says Heinz Otto, CEO of Grammer AG in Amberg, Germany. As a result of the Volkswagen contract, Grammer plans to build two new plants in Germany to provide just-in-time sequencing to VW's production lines.

Grammer is expanding its manufacturing facilities in North America as well, with a new plant in Piedmont (Greenville County), South Carolina and the consolidation of its Mexico plants in Tetla and Puebla into a new facility in Tetla.

Grammer also is adding program management and engineering capability in the Detroit area.

Grammer AG is a worldwide leader in the innovative development and manufacture of automotive interior specialty systems. Wherever people are on the road, Grammer products provide safety, comfort and convenience. Grammer's Automotive division delivers headrests, armrests, center consoles and integrated child safety seats to automotive manufacturers and interior systems suppliers.

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