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Mannesmann VDO and Philips Signed Agreements Regarding the Acquisition Of Philips Car Systems

12 January 1998

Mannesmann VDO and Philips Signed Agreements Regarding the Acquisition Of Philips Car Systems

    DUSSELDORF, Germany, Jan. 12 -- Mannesmann VDO and Philips
Electronics N.V. have signed final agreements regarding the acquisition of
Philips Car Systems (PCS).  The deal, which was first announced in
October 1997, values PCS at more than HFL 1.4 bn on a debt-free basis.
    The transaction will be effected in two steps with Mannesmann VDO
initially acquiring 100% of the larger activities of PCS in Germany and the
USA as well as 65% of the remaining worldwide activities.  The other 35% of
PCS will be taken over by Mannesmann VDO within a period of two years.  The
agreement is still subject to the approvals of the European Commission and the
US Federal Trade Commission.
    The audio, navigation and telematics activities will be embedded into VDO
Information Systems.  The company will operate under the name VDO Car
Communication.  The US activities of Philips Automotive Electronics will be
responsible for VDO's control systems business in North America.  The company
will operate under the name VDO Control Systems, North America and will as
such broaden VDO's access to the US market.

SOURCE  Mannesmann AG