ThyssenKrupp Budd Sells North American Automotive Body and Chassis Operations to Martinrea International

TROY, Mich., Oct. 16, 2006 -- ThyssenKrupp Budd Company today announced that it has agreed, in principle, to sell its North American automotive body and chassis operations to Martinrea International, Inc., of Vaughan, Ontario, Canada. The agreement is expected to be finalized by the end of the year.

The purchase price is $275 million, which consists of $95 million in cash and the remainder in assumed liabilities. Annual sales from the sold operations are approximately $1.25 billion.

The sale is in line with recent announcements by ThyssenKrupp AG to sell its North American automotive body stamping and chassis operations. ThyssenKrupp Budd said it will make every effort to provide a smooth and efficient transition of the approximately 3,500 affected employees and facilities to the new owner.

Included in the sale are plants in Hopkinsville and Shelbyville, Ken., Kitchener, Ont., and Hermosillo, Mexico. The Hopkinsville plant opened in 1998, employs 404 and produces chassis frame modules, components and suspension assemblies. The Kitchener facility, opened in 1967, employs 941 and builds full sized chassis frames and frame components, bumpers and bumper reinforcements. The Shelbyville plant, built in 1987, employs 490 and produces sheet metal automotive body stampings and assemblies, such as doors and fenders. The Hermosillo facility, opened in 2005, employs 473 and assembles chassis products, such as engine cradles. In addition, six plants operated by ThyssenKrupp Fabco and three operated by ThyssenKrupp Budd Systems are part of the transaction. A technical center in Auburn Hills, Mich., is also included.

ThyssenKrupp Fabco, producer of medium and heavy metal stampings, weldments and major tubular fabrications, employs approximately 66 at plants in Springfield, Tenn., Tupelo, Miss., and Detroit, Mich. as well as Windsor, Dresden and Ridgetown, Ontario.

ThyssenKrupp Budd Systems, producer of rear suspension modules for cars and sport utility vehicles, operates facilities in Columbia, Tenn., Fowlerville, Mich., and London, Ontario.

Approximately 180 employees at ThyssenKrupp Budd Corporate Headquarters in Troy, Mich., will also transfer to Martinrea.

The sale does not affect the ThyssenKrupp Waupaca foundry group or a joint venture in Silao, Mexico. ThyssenKrupp will continue to produce powertrain components at facilities in North America.

Martinrea, a Tier 1 automotive supplier, is engaged in the production of metal parts, assemblies and modules, and fluid management systems focused primarily on the automotive sector. Martinrea is traded on the Toronto Stock Exchange under the symbol "MRE." The company operates facilities in the United States, Canada, Mexico and Europe.

ThyssenKrupp Budd Company, a leading automotive supplier with corporate offices in Troy, Mich., currently has annual revenues of $3 billion. The company engineers, designs and builds high quality, cost effective products for approximately 75 current model vehicles. Those products include full chassis frames, subframes, space frames and components, rear suspension modules, sheet metal automotive body systems and assemblies, medium and heavy metal stampings, welded products, assemblies and systems, major tubular fabrications, gray and ductile iron castings as well as bumpers and bumper reinforcements. ThyssenKrupp Budd currently operates 27 facilities with approximately 7,800 employees in North America.