Continental Begins Production on MK25e Electronic Brake Systems

AUBURN HILLS, Mich., April 20 -- Continental Teves, a unit of Continental AG, has started production of its MK25e series of Electronic Brake Systems (EBS) for model year 2005 vehicles, at the company's award-winning Morganton, N.C. plant. The first of this product generation worldwide, full production of the MK25e system is expected to ramp up quickly, to more than 800,000 units annualized by August of this year.

The MK25e system is the next evolution of Continental's Electronic Brake Systems and is smaller, lighter, more powerful and more cost-effective to produce than its predecessor. The system uses electronic sensors along with improved algorithms to provide improved performance while a vehicle's anti- lock brake system (ABS) is enabled. Due to advances in microelectronics, today's anti-lock brake systems offer a significant improvement over those introduced just ten years ago.

"In addition to enhanced handling during ABS usage, the MK25e system also can be modified to incorporate additional functions such as traction control, electronic stability control, an electronic parking brake, hill descent assist and adaptive cruise control," said Dennis White, plant manager, Continental Teves.

In North America, the MK25e system will be produced for seven of DaimlerChrysler's platforms, including the new Jeep(R) Grand Cherokee. The MK25e will be installed on several additional platforms from U.S. and European carmakers in model years 2006 and 2007.

European production of the new generation of electronic brake systems will begin in October at Continental's Frankfurt, Germany plant.

The Morganton plant also manufactures the MK20, MK20e and MK25 EBS for cars, vans and light trucks; the MK50 EBS for medium duty trucks; and air spring active suspension systems. The plant also manages the procurement and delivery of various electronic sensors.

With 2003 sales of approximately $13 billion (US), Continental AG is a major supplier of brake systems, chassis components, vehicle electronics, tires and technical rubber products. Continental Automotive Systems' North American operation is headquartered in Auburn Hills, Mich. For additional information, visit these websites: www.conti-online.com and www.contitevesna.com .