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Johnson Controls Forms Minority Joint Venture to Supply Interior Parts, Components for Tundra Pickup Trucks

Avanzar Interior Technologies, Ltd. Will Supply Vehicle Seats and Interior Parts to Toyota's Texas Plant

SAN ANTONIO, Texas, Dec. 17 -- Johnson Controls today announced that the company has been selected to provide vehicle seating and interior parts for trucks to be assembled at Toyota Motor Manufacturing's new plant in San Antonio, Texas.

As part of its award-winning minority supplier development program, Johnson Controls has created a new, joint-venture operation -- called Avanzar Interior Technologies, Ltd. -- with a minority-owned business, SAT Auto Technologies, Ltd. to handle the work. Avanzar Interior Technologies has been certified by the Central & South Texas Minority Business Council as a Minority Business Enterprise. Berto Guerra will serve as chief executive officer of the joint-venture operation.

Under the sourcing deal with Toyota, Avanzar Interior Technologies will manufacture automotive seat systems, and interior parts for the next- generation Toyota Tundra full-size pickup truck. Production is expected to begin in the fall of 2006.

"Johnson Controls and our business partners are pleased to have been selected by Toyota to provide interior products for this important truck program," said John Barth, chairman and chief executive officer for the company. "We are prepared to provide world-class seat systems and interior parts for Toyota vehicles, and welcome the chance to help our customer launch a new operation in Texas with our newly formed minority joint-venture company."

Avanzar Interior Technologies will manufacture seat systems and interior parts at facilities on Toyota's site.

Guerra joined Toyota executives and local government officials at a press conference yesterday in San Antonio to announce 18 of the on-site suppliers for the automaker's plant. Suppliers to the Toyota Motor Manufacturing Texas facility will employ 1,500 people and invest approximately $150 million in the community. Speaking on behalf of the 18 on-site suppliers at the event, Guerra said, "We are pleased to join Toyota in this new business partnership, which is an important milestone for San Antonio as well as the Hispanic community."

Toyota began construction of a new, $800 million plant in San Antonio in February 2004 to meet growing demand for its light trucks in North America. The automaker's San Antonio plant is expected to build approximately 150,000 next-generation Tundra pickups annually.

Johnson Controls is a major supplier of seating, interior systems and batteries for Toyota at locations throughout the world. In addition to supplying the San Antonio plant, the company's Automotive Technology Systems (ATS) minority joint venture in Lawrenceville, Illinois supplies seating systems and door trim for Toyota Tundra trucks assembled in Princeton, Indiana. The ATS plant will continue to supply Tundra systems and components.

Toyota awarded the program to Johnson Controls, in part, because of the supplier's expertise in creating and developing successful joint ventures with minority-owned firms. In March 2004, Johnson Controls was recognized with the first-ever Toyota Superior Award for Supplier Diversity for its outstanding efforts on minority business development initiatives. It was the only firm to gain this recognition for its performance during 2003. In October 2004, the Michigan Minority Business Development Council named Johnson Controls "Corporation of the Year" for its outstanding efforts in supporting and developing diverse suppliers. This marks the seventh time in the past nine years in which the supplier has gained this award from MMBDC.

Last year, Johnson Controls also was recognized by NMSDC as its 2003 "Corporation of the Year" for implementing and sustaining successful diversity initiatives and programs. The award represents the highest-possible recognition a corporation can receive in the United States for conducting business with minority- and women-owned firms.

Johnson Controls is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For non- residential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls , founded in 1885, has headquarters in Milwaukee, Wisconsin.