Hella Reports Modest Sales Gains for the Year

PLYMOUTH, Mich.--Sept. 16, 2004--Spurred by above-average sales growth in Europe and the Asia/Pacific region and increasing orders for original equipment by North American automakers, global automotive supplier Hella has recorded a nearly two percent increase in sales for the year ending May 31, 2004.

Worldwide annual sales for lighting and electronics supplier Hella KGaA Hueck & Co. grew to $3.77 billion for 2003/2004, compared with the previous year's $3.69 billion, the company reported this week at the Automechnika trade show in Frankfurt, Germany.

Employment at the Hella Group during the fiscal year grew by nearly five percent to about 24,000. Growth was particularly strong in the Asia/Pacific region, which added nearly 500 employees, and in Eastern Europe, with an increase of more than 250 employees. The company's research and development staff also added nearly 300 engineers and specialists during the year.

The Hella Group's Lighting Division recorded double-digit growth in the expanding Chinese market, and Hella North America recorded numerous new orders that will lead to a significantly higher market share in the next few years.

Important technical developments for the division included the first series application worldwide for white LEDs in a headlamp, as a combined position and daytime running light in the Audi A8 W12. Hella also further expanded its position as the market leader for bend lighting. The innovative headlamp systems are now in use on 10 different vehicle models.

Hella's Electronics Division further expanded commitments during the past year in China, the U.S. and Germany for vehicle body electronics, driver-assistance systems and vehicle electrical systems. Successful joint-venture operations Intedis (with Leoni for vehicle electrical systems) and Behr-Hella Thermocontrol (for air conditioning control systems) also strengthened market positions.

Hella also began series production on its first intelligent battery sensor. Developed jointly with BMW and Autokabel GmbH, the system prevents total battery discharge. Hella also is developing a 24-GHz sensor that will enable electronic driver-assistance systems such as blind-spot monitoring, pre-crash and parking assistance. The sensor meets the requirements of the applicable directives for approval within the European Union.

Hella's aftermarket and special OE sales have produced a double-digit sales increase during the past year. The division currently provides replacement vehicle lighting components for nearly half of the European vehicle fleet and 90 percent of German car manufacturers. The division also is meeting the increasing demand from the aftermarket for electric, electronic and air conditioning products by expanding and extending its product range and the technical services provided.

Hella also successfully launched new exhaust gas-related sensor products and has met the increased demand for its actuator technology. With more than 200 new products, the company also has continued its leadership in the air conditioning sector in Europe

The financial results are the first for the company since its shift from a limited partnership (KG) into a corporation (KGaA) earlier this year. The conversion is retroactive to the opening of the company's 2003/2004 business year on June 1, 2003. All of the company's limited partner shares will continue to be held by the present family partners.

Lighting, electronics, complete vehicle modules, air conditioning systems, vehicle wiring systems and signal processing for the automobile industry, as well as automotive aftermarket components, are the core fields of competency for automotive supplier Hella KGaA Hueck & Co. Sales for the Hella Group are approximately $3.8 billion, placing Hella among the top 100 German industrial companies.

With its corporate headquarters in Lippstadt, Germany, the company employs nearly 24,000 people at 65 manufacturing facilities, production subsidiaries and joint-venture companies in 18 countries. Over 2,000 engineers and technicians work in research and development. All of the world's leading automobile and systems manufacturers are Hella customers, as well as the automotive components aftermarket. Additional information is available on the Internet at www.hella.com.