Volkswagen Group of America Chattanooga Operations Announces Multi-Million Dollar Agreement With EPB

-- Value of contract estimated to reach $230 million over next 20 years --

CHATTANOOGA, Tenn., Feb. 24 -- Volkswagen Group of America Chattanooga Operations, LLC announced today that EPB will be the energy provider for the company's new plant. The agreement includes provisions for power service, operations and maintenance, substation construction and leased capacity for industrial growth.

"Volkswagen is pleased to partner with EPB in this significant endeavor and I appreciate the efforts of the Volkswagen purchasing team and EPB in finalizing this agreement," said Frank Fischer, CEO, Volkswagen Group of America Chattanooga Operations said.

"We are delighted that Volkswagen is building their new plant in Chattanooga and excited to be a part of this project with them," said Joe Ferguson, Chairman of EPB's Board of Directors. "We look forward to working together with Volkswagen as their power supplier in order to help make their new operation a huge success for many years to come."

Volkswagen predicts that it will spend approximately $11 million a year over the next 20 years for electricity at the facility. The Chattanooga plant, like other Volkswagen Group facilities, is committed to efficient and environmentally friendly operation that will lower energy consumption.

In addition to the costs for energy use, there will also be an $11 million investment in infrastructure, including $4.2 million for sub-station development. Additionally, the agreement includes provisions for additional growth at Enterprise South, with 10 megawatts of electricity reserved for future customers.

With this agreement, more than $55 million in local contracts have been awarded by the city, state and Volkswagen; this includes $10 million for Volkswagen contractors and subcontractors, with another $230 million over the next 20 years.

About Volkswagen Group of America, Inc.

Volkswagen Group of America, Inc. is a wholly-owned subsidiary of Volkswagen AG, the world's third largest automaker and the largest carmaker in Europe. It houses the U.S. operations of a worldwide family of distinguished and exciting brands including Audi, Bentley, Bugatti, Lamborghini and Volkswagen, as well as VW Credit, Inc. Founded in 1955, the company's headquarters are in Herndon, Va.

Volkswagen Group of America brings to the U.S. vehicles that marry the science of engineering and the art of styling, with the goal of offering attractive, safe, and environmentally sound automobiles that are competitive and set world standards in their respective classes.

The company has approximately 2,500 employees in the United States and sells its vehicles through an 800-strong dealer network. With increasing popularity for its brands in the U.S., the company has set the goal of reaching one million car sales in the country by 2018. For more information, visit www.volkswagengroupamerica.com.