Hella Forms Alliance with Minority Supplier

    PLYMOUTH, Mich.--June 30, 2003--Hella North America has formed a strategic alliance with Carter Group, Inc., a minority-owned company headquartered in Windermere, Florida, to produce and market automotive HVAC (heating, ventilation and air conditioning) actuators.
    Joe Borruso, president of Hella North America, said that under the agreement with Carter Group, both companies will manufacture actuators with their own trademarks, but Carter Group will sell them in the NAFTA region. Currently, Hella has a significant share of the world market for HVAC actuators.
    Carter Group is a major supplier of HVAC power control modules and has recently entered the automotive actuator market. The company's CEO, Butch Carter, said, "This alliance expands our offerings as a major supplier of component modules for HVAC systems to OEMs and creates a true NAFTA manufacturing footprint with facilities in the U.S., Canada and Mexico."
    HVAC actuators operate air inlet, temperature or "mode" doors in air-handling modules for automotive applications. Today's actuators use electrical motors and gear trains, unlike previous technology such as pneumatic actuators, which depend on a vacuum supply. Combining compact size, high durability and low noise, electrical actuators are a significant improvement for HVAC system controls in automotive applications.
    Borruso said the agreement with Carter Group allows both companies to strengthen their positions in the field of automotive HVAC controls.
    "This new alliance fits right into Hella's 'network value' strategy," Borruso noted. "By building an efficient network of independent supplier companies based on technology, innovation and global reach, Hella provides its customers with an attractive alternative to a reliance on automotive mega-suppliers. Carter Group is a minority company that has 'high-tech' capabilities."

    About Hella North America

    Hella's core business areas include automotive lighting, electronics, complete vehicle modules and the independent automotive parts aftermarket. Hella North America and its parent company, Hella KG Hueck & Company, have 22,990 employees at more than 54 manufacturing facilities, production subsidiaries and joint venture companies throughout the world. The company supplies all of the world's leading auto manufacturers. Worldwide consolidated sales for Hella during the company's 2000-2001 fiscal year grew to more than $2.53 billion. Additional information about the company is available on the Internet at www.hella.com.

    About Carter Group

    Carter Group is a North American designer, developer and manufacturer of linear and pulse width power control modules for automotive HVAC systems, as well as climate control modules for seat heaters and coolers. It has several patents pending, including a number which have received office actions indicating claims will be allowed. It has offices in Windermere, Fla., Cincinnati, Ohio and Oakville, Ontario. More information is available at www.cartergroupcanada.com.