Flexitech Strengthened Through Worldwide Cooperation

Freudenberg negotiates with longstanding partners

BLOOMINGTON, Ill., Nov 12 -- In a partnership that has lasted more than 15 years, Freudenberg, together with Meiji Flow Systems, has achieved the leading market position in the brake-hose business in Europe. Meiji Flow Systems and Freudenberg have also been working together successfully in the US since 1999. To further enhance this confident partnership on a global scale, partners Freudenberg, Meiji Flow Systems and the latter's shareholder, Mitsubishi Corporation, are currently negotiating a possible combination of their business activities. Employees' representatives are involved in this process. During the 2006 fiscal year, the approximately 500 Flexitech employees in Europe and the US realized sales in the amount of around EUR 80 million.

"Our longstanding partners, Mitsubishi Corporation and Meiji Flow Systems, with their excellent technological competence and their international network, will continue to invest in the Flexitech business in order to assist carmakers with their globalization strategies. With this step, we are on the right path to worldwide market leadership," remarks Claus Moehlenkamp, management spokesman at Freudenberg Dichtungs- und Schwingungstechnik (FDS) and board member of Flexitech USA. To ensure continuity, even under the direction of the new owners, Claus Moehlenkamp will continue to tend to Flexitech activities on the company Board.

Randy Ross, President of Flexitech Inc., in Bloomington, Illinois, echoes the sentiment, adding: "Based on our longstanding positive experience with our joint-venture partners Mitsubishi Corporation and Meiji Flow Systems, we look forward to working closely together in the new Flexitech Group. We believe that the new network generates significant added value for our customers and employees."

Information on the parties to the negotiations:

Mitsubishi Corporation (MC) is Japan's largest general trading and investment company (sogo shosha) with more than 200 locations in some 80 countries worldwide. With more than 500 group companies, MC has a multinational workforce with nearly 54,000 employees. MC has long been engaged in business with customers around the world in virtually every sector of industry, including energy, metals, machinery, chemicals, food products and general merchandise.

Meiji Flow Systems (MFS) is a subsidiary of Meiji Rubber and Chemical (MRCC). With a history dating back 100 years, it is one of the oldest Japanese manufacturers of rubber products. The business focus at MFS is upon parts for the automobile industry; MFS produces automotive hoses in nine countries. Its principal operation is located in Kanagawa, Japan. The company employs a staff of 165.

Freudenberg is a family company that offers its customers products and services that are technologically demanding and require a considerable amount of consultation. First and foremost, the group is a component supplier concentrating in the areas of seals and vibration-control technology, non- woven fabrics, as well as lubricants and release agents. This is complemented by the Household Products business area with the robust vileda (R) brand, as well as the group's Specialties and Service companies. The group employs more than 32,000 total staff in 53 countries and records annual sales exceeding EUR 5 billion.