Behr and Hella Plan Joint Venture to Serve Auto Aftermarket

DETROIT, Nov. 3, 2005 -- Automotive cooling specialists Behr GmbH and Hella KGaA Hueck & Co. plan to form a joint venture -- Behr Hella Service -- to serve the global independent aftermarket for vehicle air-conditioning and engine-cooling systems.

Subject to European regulatory approval, the joint venture will begin operations in Europe at the end of this year with plans to expand on a global basis later.

The two companies plan to combine the activities of Behr Service with Hella's aftermarket air-conditioning business in a new company based in Schwaebisch Hall, Germany. Behr and Hella each will hold a 50 percent share in the joint venture. Management of Behr Hella Service will be shared by Juergen Laucher, managing director of Behr Service GmbH, and Dr. Joachim Damasky, responsible for electronics and air conditioning at Hella's aftermarket products division.

"Behr Hella Service represents a logical continuation of the cooperation between Behr and Hella in our air-conditioning and front-end modules businesses," said Laucher. "It combines Hella's global sales organization with Behr's product know-how, pooling our aftermarket activities in the air- conditioning and engine-cooling sectors."

The joint venture is expected to provide customers with a wide range of parts and services related to vehicle air-conditioning and engine-cooling systems.

"Our customers will benefit from the combined know-how of the two partners," said Damasky. "The joint venture offers customers special expertise in the areas of climate control and heat transmission, as well as excellent service competence in parts supplies, technical information and training packages for both the independent aftermarket and garages."

At the time of its launch, the Behr Hella Service joint venture commands a leading market position in the Western European market for condensers and compressors and passenger-car cooling parts. The new organization's customer service operations will be supported primarily by Hella's international sales organization.

About the Behr Group

Behr GmbH & Co. KG, Stuttgart, is a system partner for the international automotive industry. The company group specializes in vehicle air conditioning and engine cooling and is one of the leading Original Equipment manufacturers for passenger cars and commercial vehicles in the world. In the past fiscal year 2004, sales totaled approximately 3.0 billion EUR. Behr currently employs around 16,900 people in 30 development and production locations in Europe, North and South America, South Africa and Asia.

About Hella KGaA Hueck & Co.

The automotive supplier develops and manufactures lighting and electronic components and systems for the automotive industry. In addition, complete vehicle modules and vehicle electrical systems are produced by joint venture companies. Hella is one of the world's largest companies selling automotive parts and accessories with its own sales companies and partners in more than 100 countries. The Hella Group's consolidated sales total approximately 3.1 billion Euros. Hella is one of the 100 largest industrial companies in Germany. Worldwide, 23,900 people are employed in 65 manufacturing facilities, production subsidiaries and joint ventures in 18 countries. More than 2,000 engineers and technicians work in research and development. Customers include all major vehicle and system manufacturers as well as the automotive aftermarket.