MANN+HUMMEL Opens New Plant in Mexico

QUERETARO, Mexico, Aug. 3, 2004 -- MANN+HUMMEL, development partner and original equipment supplier for the international automotive industry, has begun operations at its new production center here in the Queretaro Industrial Park.

The new facility represents an investment of nearly $15 million over three years and will employ as many as 250 people by 2006. The 150,000-square-foot (14,000-square-meter) facility doubles MANN+HUMMEL manufacturing capacity in Mexico.

"The expansion of our operations in Mexico allows us to leverage our manufacturing capabilities there and introduce more innovative products to our customers in North America," said Claude Mathieu, president and CEO of MANN+HUMMEL's North American operations. "This is a key step in our aggressive plans for MANN+HUMMEL's North American growth."

The company expects to triple its sales in Mexico over the next several years and expand the number of components currently produced there, including air cleaners, filter elements and design air cleaners. New products such as engine plastic oil modules and coolant surge tanks also will be produced in Queretaro.

The need for a larger facility was the result of both current and newly- awarded business from customers such as Volkswagen of Mexico, General Motors, Ford, Volvo, DaimlerChrysler and Nissan-Renault. The plant will supply those automakers' assembly plants as well as the Aftermarket customers in Mexico and in the USA.

The new plant sits on an eight-acre site, adjacent to a seven-acre parcel that is available for future expansion, in the Queretaro Industrial Park. The park is home to more than a dozen other major automotive suppliers.

"The Queretaro site offers excellent flexibility for future expansion," said Steffen Schneider, president of MANN+HUMMEL Mexico. "It will easily accommodate our projected growth and the needs of our customers and will be our manufacturing base for the further penetrations in the North American filter element market."

About 30 percent of the Queretaro work force have relocated from MANN+HUMMEL's former production facility in Tlalnepantla, about 125 miles (200 kilometers) to the south. The new plant is much larger than the old facility, and at full capacity could produce two times more components for MANN+HUMMEL's customers.

The MANN+HUMMEL Group is an international company. In 2003, the company achieved sales of $1.3 billion. The MANN+HUMMEL Group currently employs around 9,000 people at more than 40 locations worldwide. The company develops, produces and sells technically complex automotive components such as air filter systems, intake manifold systems, liquid filter systems and cabin filters for the automotive industry, and filter elements for vehicle servicing and repair.

For general engineering, process engineering and industrial manufacturing sectors the company's product range includes industrial filters, filter systems, and materials handling systems and equipment. MANN+HUMMEL's customers come from a large number of sectors, with series production for the automotive industry occupying a key position. Further information about MANN+HUMMEL can be found under http://www.mann-hummel.com/ .