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GKN and EVO Electric form Joint Venture to manufacture electric motors and hybrid and electric drive systems

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GKN and EVO Electric form Joint Venture to manufacture electric motors and hybrid and electric drive systems

London, England - EVO Electric, a pioneer in advanced electric drive solutions for the automotive sector, announces that it has formed a joint venture with GKN Driveline, part of GKN plc (LSE:GKN), to develop, manufacture and sell Axial Flux electric motors and drive systems for use in hybrid and electric vehicles. As part of the agreement, GKN will also acquire a 25.1% stake in EVO Electric. GKN will provide financing in a combination of debt and equity together with engineering and commercial resources to enable the establishment and growth of the joint venture. The total value of GKN’s investment at closing is £5m consideration in cash.

The joint venture will be headquartered in the UK and will leverage state-of-the-art technology and expertise in hybrid, plug-in hybrid and electric drivetrains from both partners.

The joint venture -- known as GKN EVO eDrive Systems -- aims to capture a share of the rapidly growing market for hybrid and electric vehicle systems. EVO Electric was spun off from Imperial College London in 2006 with financial backing from investors including Imperial Innovations. Since then, the company has established itself as a supplier of high-torque, high-power motors, generators and integrated drive systems to manufacturers including Jaguar Land Rover, Lotus Cars, Nissan and a range of other clients in the automotive, military and marine industries. EVO Electric’s Axial Flux technology is unique in the industry, offering a powerful combination of weight, volume, efficiency, control and manufacturing advantages, which in turn translate into lighter, smaller and more efficient hybrid and electric drivetrains.

GKN Driveline is already a pioneer in the development and supply of eTransmissions and eAxles for hybrid and electric vehicles. This venture will enable GKN Driveline to offer advanced Axial Flux motors and generators, adding to its existing eDrive Systems portfolio and enhancing its capability in full driveline systems, in response to the demands of its customers.

David Latimer, CEO of EVO Electric said: “This alliance with one of the automotive world’s leading Tier One suppliers and a leader in electric-drive axle and transmission technology represents a major break-through for us. It will be pivotal in establishing EVO as a key player in the fast-growing global market for electric drive components.”

Nigel Stein, CEO of GKN Driveline said: “This strategic addition will enhance GKN Driveline’s ability to meet its customers’ needs in drivetrain electrification. It is aligned with our strategy of supporting vehicle manufacturers as they search for fuel savings and reduced CO2 emissions through hybrid and electric drive vehicles.”

EVO Electric was advised on the transaction by Ascendant Limited.

About EVO Electric EVO Electric Limited develops and manufactures advanced electric machines, drive systems and other integrated products for a wide range of transportation and mobile power applications. Its core competence is the development, design and integration of high torque electric motors and generators based on Axial Flux technology, an ultra efficient, low weight alternative to conventional electric machines. EVO is backed by Imperial Innovations plc (AIM: IVO), which creates, builds and invests in pioneering technologies. Imperial Innovations supports scientist-entrepreneurs in the commercialisation of their ideas and has exclusive access to scientific and technological developments coming out of Imperial College London, one of the world’s leading research institutions. EVO Electric

About GKN Driveline GKN Driveline is the world’s leading supplier of automotive driveline components and systems. As a global company serving the world’s leading vehicle manufacturers, GKN Driveline develops, builds and supplies an extensive range of automotive driveline components -- for use in the smallest ultra low-cost car to the most sophisticated premium vehicle demanding the most complex driving dynamics. GKN Driveline is a leading global producer of CVJ Systems, AWD Systems, TransAxle Solutions and eDrive Systems. GKN Driveline

About the GKN Group GKN plc is a global engineering business serving mainly the automotive, aerospace and land systems markets. It has operations in more than 30 countries, around 40,000 employees in subsidiaries and joint ventures and had sales of £5.4 billion in the year to 31 December 2010. GKN plc is listed on the London Stock Exchange (LSE: GKN).