Siemens VDO and Magneti Marelli to Cooperate on Diesel Engine Injection Systems Development

REGENSBURG, Germany & MILAN, Italy--Oct. 2, 20049, 2004--Automotive suppliers Siemens VDO Automotive AG and Magneti Marelli today have signed a cooperation agreement that includes development and marketing of a new diesel injection system. This solenoid injector-based system is designed for medium passenger cars equipped with diesel engines. Production is scheduled to start in 2007.

According to the agreement, the partners will develop a new generation of diesel multijet injectors and pumps. The newly designed injectors will combine well-established Siemens VDO Automotive diesel injector technology with an advanced solenoid actuation concept developed by Magneti Marelli Powertrain and CRF (Fiat Research Center). The pumps will be designed collectively by Siemens VDO Automotive and Magneti Marelli Powertrain, while Magneti Marelli will develop the system's electronic control unit.

"Siemens VDO Automotive will continue developing and producing Piezo common rail systems," explained Johann Warga, CEO of Siemens VDO's diesel division during the signing ceremony. "But to meet the special requirements of small engines, we are cooperating with Magneti Marelli, a partner with profound experience in the field of injection technology and common rail engine management systems."

"Siemens VDO Automotive, with its expertise in automotive electronics, is the ideal partner for this project," stated Domenico Bordone, Chief Executive Officer of Magneti Marelli.

Both companies look at the cooperation as an opportunity to gain further market share in the diesel injection business. In 2004, diesel engines represent approximately 50 percent of the passenger car market in Europe.

Siemens VDO Automotive is a tier-one supplier of automotive electronic/electrical systems and components with applications covering gasoline and diesel powertrain technologies, safety and chassis systems, body electronics, plus interior products including infotainment systems. Worldwide sales reflecting fiscal year 2002/2003 totaled $9.5 billion (EUR 8.375 billion). For more information: www.usa.siemensvdo.com.

Siemens AG is one of the largest global electronics and engineering companies with reported worldwide sales of $80.5 billion in fiscal 2003. Founded more than 150 years ago, the company is a leader in the areas of Automation and Control, Information and Communications, Lighting, Medical, Power and Transportation.

With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $16.6 billion and employs 70,000 people throughout all 50 states and Puerto Rico. Eleven of Siemens' worldwide businesses are based in the United States. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 423,000 people in 192 countries. For more information on Siemens in the U.S.: www.usa.siemens.com.

Magneti Marelli designs, develops and manufactures high-tech automotive systems and components for the OE international market. With 49 plants and 24 R&D centers in 16 countries, a workforce of 20,000 and a turnover of 3,2 billion euro in 2003, Magneti Marelli is a Italy-based group which ranks among the leading automotive suppliers in Europe, North and South America and Far East in the business areas Powertrain (electronic fuel injection systems - gasoline, diesel and multifuel - Selespeed robotized gear-box), Automotive Lighting, Suspension Systems and Shock Absorbers, Electronic systems (instrument clusters, on board navigation, telematics), Exhaust Systems and Motorsport.