Bosch Group Acquires U.S. Distributor of High-Efficiency Water Heaters

FARMINGTON HILLS, Mich., Jan. 20, 2005 -- The Bosch Group has announced a 100 percent acquisition of Controlled Energy Corporation (CEC), based in Waitsfield, Vt. The company will be integrated into Bosch's subsidiary BBT Thermotechnik, a leading European manufacturer of heating products.

CEC, a long-standing distributor of BBT Thermotechnik, reports annual sales of $34 million USD with leadership in the growing U.S. market for tankless water heaters. The acquisition of CEC, with 70 employees and 15 locations in the United States and Canada, expands BBT Thermotechnik's sales base and its market share in North America, strengthening Bosch's activities in this important market.

Klaus Huttelmaier, Member of the Management Board of BBT Thermotechnik GmbH, said: "The acquisition of Controlled Energy Corporation adds another element to our global presence. Home centers and DIY stores account for a large portion of CEC's sales and the quality of the company's customer service is widely recognized in the market. As such CEC ideally complements our U.S. subsidiary, Buderus Hydronic Systems, which sells its heating systems through wholesale channels." CEC and Buderus Hydronic Systems are envisaged to be merged into a new company to be known as BBT North America.

In North America, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial automation and mobile products, power tools and accessories, security technology, packaging equipment and household appliances. Bosch employs more than 23,300 associates in more than 80 facilities throughout North America and reported sales of $6.6 billion in 2003. For more information, visit http://www.bosch.us/ .