ZF Sales Up 8 Percent in Q1 2004

FRIEDRICHSHAFEN, Germany, April 28 -- ZF Group announced today an 8 percent sales increase for the first quarter of 2004 compared to the same period in 2003. The company reported sales of $2.8 billion (euro 2.4 billion) and expects 5 percent growth over 2003 sales figures. This growth is attributed to investment in new products and technologies during the past few years that will play a key role in 2004 sales performance.

ZF reported key increases from several divisions:

* The Car Driveline Technology division reported a 9 percent increase, due to full-scale production of 6-speed automatic transmissions being featured on more vehicles, including the BMW 5 and 6-series, as well as the new Audi A6

* The Car Chassis Technology division increased sales by 3 percent with new contracts for BMW X3 axles in Austria, and axle assemblies in China

* Sales in the Commercial Vehicle and Special Driveline Technology division increased by 11 percent

* The Off-Road Driveline Technology and Axle Systems division posted a 7 percent increase due to better-than-expected performance in the construction machinery market in North America and Asia

* Sales in the Powertrain and Chassis Components division increased by 8 percent due to production start-up of CDC (continuous damping control) units for the Opel Astra, and continued production on the Ford F150

* ZF Steering Systems posted an increase of 25 percent during the first quarter due to series production launch of electric steering on the Volkswagen PQ35 platform -- Golf, Touran, Audi A3, and others; and increased orders for Active Steering on the BMW 5 and 6 series.

ZF Friedrichshafen AG is a leading worldwide supplier of driveline and chassis technology. Headquartered in Friedrichshafen, Germany, ZF is among the 15 largest automotive suppliers in the world. The company has a total workforce of 53,500 at 119 locations in 25 countries, and combined revenues for the group totaled more than $10 billion in 2003.

ZF operates a large manufacturing network in North America, combined with global research and development capabilities, to provide advanced technology to the region. The ZF Group North American Operations Technical Center is located in Northville, Michigan.

For additional information, please visit www.zf.com/presscenter