Siemens VDO Completes Acquisition of Specific American Electronic Components, Inc. Assets

Leading Automotive Electronics Supplier to Take Possession of Some of the Assets, Technology and Employees of the Powertrain Sensors Company

ELKHART, Ind., Dec. 7 -- Siemens VDO today completed the acquisition of some of American Electronic Components, Inc.'s (AEC) employees, assets and technology, helping advance Siemens VDO to a leading market leadership position in the North American automotive sensors segment.

"This acquisition brings Siemens VDO additional engineering and design capabilities to grow our expertise in automotive sensor technology and secure a more competitive market position in the NAFTA region," said Siemens VDO Sensors Division General Manager Bret Sauerwein. "AEC has the ability to quickly take a product from concept to production using their experienced engineering team. They have a history of designing highly engineered sensors that can impact both existing and new market segments."

American Electronic Components (AEC), located in Elkhart, Ind., designs, manufactures and markets sensors used in automotive, heavy truck, off-highway and marine applications. The company specializes in antilock brake system (ABS) camshaft, crankshaft and transmission speed sensors using both "Hall Effect" and variable reluctance (VR) sensing technology. AEC also produces a wide range of Hall Effect-based, non-contacting position sensors used in various applications, such as chassis ride height, transmission range and accelerator pedal position.

In the immediate future, Siemens VDO intends to utilize the former AEC location as the company's North American headquarters for its Sensors division.

"For more than 65 years, AEC has distinguished itself in the North American market by its engineering capabilities, technical innovation, versatility and innovativeness," said Siemens VDO Sensors Division Finance Director Chauncy Maher. "We look forward to merging AEC's skills and expertise with ours to form a stronger, more competitive Sensors division in this market."

With this acquisition, Siemens VDO has access to AEC, including facilities comprising approximately 152,000 sq. ft. of operational space and 294 employees. AEC generated approximately $40 million in annual sales in 2004. The operation's product portfolio and technical expertise complement Siemens VDO's core competencies of innovative automotive sensor technology.

Siemens VDO 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 2005 totaled euro 9.6 billion. For more information: http://www.usa.siemensvdo.com/ .

Siemens AG is one of the largest global electronics and engineering companies with reported worldwide sales of $96 billion in fiscal 2005. Founded nearly 160 years ago, the company is a leader in the areas of Medical, Power, Automation and Control, Transportation, Information and Communications, Lighting, Building Technologies, Water Technologies and Services and Home Appliances. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 460,000 people in 190 countries.

With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $18.8 billion and employs 70,000 people throughout all 50 states and Puerto Rico. Thirteen of Siemens' worldwide businesses are based in the United States. For more information on Siemens in the United States: http://www.usa.siemens.com/ .