The Schaeffler Group Inaugurates New R&D Center in Anting, Shanghai

ANTING, China, June 4 -- The Schaeffler Group, a family-owned, globally-leading bearing and automotive supplier, recently opened a new R&D center in Anting, Shanghai, as a further step to focus more on the Chinese market and to emphasize the country's strategic relevance in Asia. Maria-Elisabeth Schaeffler and her son Georg F. W. Schaeffler, partners of the Schaeffler Group, together with Dr. Jurgen M. Geissinger, president and CEO of the Schaeffler Group, inaugurated the modern R&D center, in the presence of prominent personalities from the government and local businesses, with a traditional ribbon cutting ceremony.

"The fact that we have chosen Anting, Shanghai as the location for the new Schaeffler R&D center underlines how we perceive the significance of the Chinese market," emphasizes Dr. Jurgen M. Geissinger. "The R&D center will provide local technological expertise and ensure bi-lateral information exchange in Asia with other tech centers in our global R&D network. The facility will also be key in identifying new business opportunities, intensifying existing relationships with local and international customers, and subsequently supporting further growth of the Chinese economy," said Geissinger.

The Germany-based Schaeffler Group started the construction of the new 21,000 square meter R&D center in 2005 with a total investment of 220 million RMB. In the beginning, approximately 100 engineers will focus on the adoption of state-of-the-art know how for products for the Asian markets. In the near future, it is planned that the R&D staff in Anting will be extended to more than 250 engineers as part of the worldwide network of Schaeffler R&D centers. Meanwhile, equipped with the most advanced testing, calculation and simulation facilities, the R&D center will provide in-time and reliable examination results for its customers - Chinese and international companies from the automotive and industrial sectors.

The Schaeffler R&D center in Anting will focus on technology transfer and innovation. Based on the strict emission control regulations that have been released by the Chinese government in order to ensure sustainable growth in China, Schaeffler thrives to provide efficient product solutions in order to reduce fuel consumption and emissions, e.g. through innovative engine systems in the automotive sector.

For industrial applications, the Schaeffler R&D Center is targeting high-tech and premium solutions, such as X-Life, as well as further expanding its product portfolio for competitive tailor-made and standard solutions. This further emphasizes the fact that Schaeffler's China facilitates not only act as a production base for the domestic market, but also are designed to support the Schaeffler Group's overall activities in the Asia-Pacific region.

The pool of highly educated and talented human resources available, in addition to strong support of the local authorities and the fact that it is also located in the vicinity of Tongji University, made Anting, Shanghai an attractive location for the R&D center.

The new building offers laboratories, workshops, administration, a center of competence and a modern product showroom, which features products in a range of applications for the automotive, industry and aerospace sectors.

Schaeffler's R&D center is located in "the automotive town" in the northwest suburb of Shanghai, and will become the Asia-Pacific headquarters for the multinational company, which has a total of three manufacturing locations and 11 sales offices throughout China.

About Schaeffler Group

With approx. 63,000 employees at more than 180 locations worldwide and consolidated sales of 8.3bn euro (2006), the Schaeffler Group is a leading global bearing manufacturer and automotive component supplier. Group members are Schaeffler KG with its brands INA and FAG and LuK.

At Schaeffler China a total of 3,300 staff is employed at three plants (Taicang and Ningxia) and 11 sales offices throughout the country.

To serve the North American automotive market, the Schaeffler Group operates a 78,000-square-foot North American Automotive Center in Troy, Mich. This facility employs 165 engineers and technicians, and houses a 30,000-square-foot, state-of-the-art test lab, outfitted with multiple test cells capable of performing test simulations for engine and engine components. Schaeffler Group Automotive also has North American facilities in Cheraw and Spartanburg, S.C.; Joplin, Mo.; Wooster, Ohio; Stratford, Ont., Canada and Fort Mill, S.C. (which also serves as the corporate headquarters for the Schaeffler Group USA Inc.). For more information, please visit http://www.schaeffler.com/ .

NOTE TO EDITORS: For an electronic image of the ribbon cutting ceremony at the Schaeffler R&D Center, please contact Jim Bianchi at 248-269-1122 or jbianchi@bianchipr.com