Launched 100 Years Ago
Bosch Looking to Continue Growth in The U.S.

DETROIT, Sept. 1 -- The Bosch Group celebrates its 100th anniversary in the U.S. on August 31, 2006. What began with a sales office for magneto ignition devices in New York City in September 1906 is today the Bosch Group's largest market outside Germany. The Bosch Group's other North America operations are also controlled from the U.S. Bosch sales in the U.S. have quadrupled in the past ten years. "The U.S. will also be a key market for us in the future, and one where we are looking to achieve significant continued growth," said Franz Fehrenbach, Chairman of the Bosch Board of Management, at a gala event in Detroit. "By 2015 we wish to increase the America region's share of total sales by another 6 percentage points to 25 percent," said Fehrenbach. Sales in North America in the first half of 2006 alone rose 10 percent. More than 23,000 associates generated sales of $8.4 billion at over 80 sites in 2005. The U.S. alone has 16,700 associates, 70 sites, and sales of $7 billion.

Bosch has reinforced its market position in the U.S. since the start of 2006 with two acquisitions. Together with Mann + Hummel, it acquired automobile filter manufacturer Purolator, thereby expanding its American aftermarket business. Bosch is also buying all the shares in Telex Communications Holdings. The appropriate regulatory approvals were granted on August 31, 2006. This acquisition sees Bosch boosting its operations for security systems. Purolator and Telex employ a workforce totaling around 3,000 and generated sales of well over half a billion dollars in 2005. "For us and all our divisions, the U.S. is a key market, which we will also continue to strengthen with appropriate acquisitions," said Fehrenbach.

Expansion of production and development capacity in the U.S.

Bosch is also expanding its production and development capacity in the U.S. In Plymouth Township, the second engineering center in the Detroit area is currently under construction. Driver assistance systems are just one of the products that will be developed here from 2007 onwards. Some 475 associates will be employed in the new 225,000 sq. ft. premises. Investment in this individual project amounts to approximately $37 million. "Overall, the Bosch Group is investing approximately $600 million in production and development facilities at the North American sites between 2004 and 2006," said Peter J. Marks, member of the Bosch Board of Management, whose responsibilities include American operations. New production capacity for diesel and gasoline injection is currently being created in Charleston und Anderson (South Carolina).

Bosch sees potential for growth in the U.S., in particular for the Electronic Stability Program ESP(R) and state-of-the-art high-pressure diesel systems. Rising fuel prices are making economical diesel vehicles increasingly attractive. Tax incentives for low-consumption vehicles through the U.S. government's "Energy Bill" are also benefiting diesel. "We therefore expect diesel's market share for cars and light commercial vehicles to rise from the present 5 percent to 15 percent by 2015," says Marks. The number of new automobiles in North America fitted with ESP(R) is already much higher. It is currently around 35 percent and is set to double by 2010.

Growth using innovative technology products - road show

In the Consumer Goods and Building Technology sector, the successful market launch of new products is largely responsible for a major rise in sales. Power tools with small, lightweight lithium-ion rechargeable batteries are in heavy demand among DIY enthusiasts. Bosch is also experiencing strong growth in security systems, especially for video surveillance and fire protection. The Industrial Technology sector is also making a major contribution to reviving one of the busiest inland waterways in North America, with Bosch Rexroth planning and supplying lock controls for the Welland canal. This enables the Niagara Falls to be bypassed safely and overcomes a 330-feet height difference over a 27-mile stretch using eight locks.

To celebrate this key anniversary, Bosch is publishing a brochure in the U.S. on the 100-year history of the company, featuring accounts from numerous contemporary witnesses. A rolling exhibition in a 75-foot truck will be stopping by at customer locations, Bosch plants, large trade fairs, and technology museums until the end of the year. Events and competitions for Bosch associates will be held nationwide where money will also be collected for charitable projects. The company will also donate 100,000 U.S. dollars to the SAE (Society of Automotive Engineers) Foundation for the "A World in Motion" project. This aims to stimulate students' interest in science and technology through educational games and experiments.

Varied history and two relaunches in the U.S.

The 100-year history of Bosch in the U.S. began with a successful innovation. The Bosch magneto ignition device became a key product at the start of the 20th century for the rapidly growing motorization. It sold so well in the U.S. that Bosch opened an office in New York City in September 1906. Shortly afterwards, production of magneto ignition devices also began in New York. These ignition devices were practically indispensable in automobiles, trucks, tractors, and aircraft. In 1910, 10,000 units per month rolled off the production line in the U.S. At that time, this was almost half of Bosch's total production. Sales in the U.S. grew so fast that before the First World War they were higher than in Germany.

In both world wars, the U.S. government requisitioned Bosch's assets in the U.S. In 1921 and 1953, the company returned to the U.S. market. But it was not until the 1970s, with the diesel-injection technology plant in Charleston, that Bosch resumed production in the U.S. Today, it is Bosch's largest production site in the U.S., with a workforce of over 2,000. The 1970s also saw Bosch start supplying electronic gasoline injection to U.S. carmakers. In 1983, an engineering center was established in Farmington Hills near Detroit to apply systems to customer vehicles. Following several extensions, the site currently employs 1,600 associates, the majority of whom are engineers and technicians. Bosch has further research and development facilities in Palo Alto, California and Pittsburgh, Pennsylvania. In 1990, Bosch and Carnegie Mellon University founded the Carnegie Bosch Institute in Pittsburgh. The institute is tasked with promoting research and education in the international management sector. Bosch donated 15 million U.S. dollars to set up the institute.

The Bosch Group is a leading global manufacturer of automotive and industrial technology, consumer goods, and building technology. In fiscal 2005, some 251,000 associates generated sales of 41.5 billion euros or $51.7 billion. Set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as "Workshop for Precision Mechanics and Electrical Engineering," the Bosch Group today comprises a manufacturing, sales, and after-sales service network of some 280 subsidiaries and more than 12,000 Service Centers in over 140 countries.

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, thermo-technology, packaging equipment and household appliances. Bosch employs 23,000 associates in more than 80 primary and 20 associated facilities throughout the region with reported sales of $8.4 billion in 2005. This year marks Bosch's 100th year of operating in the U.S. For more information on the company and the Centennial, visit http://www.bosch.us/.