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Mannesmann Sachs Acquires Borg Warner's Torque Converter Business

6 April 1998

Mannesmann Sachs Acquires Borg Warner's Torque Converter Business

    DUSSELDORF, Germany, April 6 -- Mannesmann Sachs,
Schweinfurt, one of Germany's largest automotive suppliers, has acquired Borg
Warner Automotive's, Chicago (USA), torque-converter business.  The agreement
with Borg Warner envisages that Sachs takes over the entire range of models
and versions, the production equipment, test facilities and the existing
supply commitments.  Borg Warner presently manufactures approx. 250,000 torque
converters annually for industrial use and medium-duty trucks, for customers
in the USA and Europe.  The agreement is subject to the approval of the
appropriate bodies.
    Sachs intends transferring the production facilities from the Borg Warner
plant in Sterling Heights, Michigan/USA, to its planned converter plant in
Mexico before the end of this year.  The set up of a plant with a production
capacity of 500,000 converters in Saltillo, Mexico, to supply the American
Market, was already in the business plans.  The main reason for this decision
were two large orders by General Motors, which enabled Sachs' entry into the
American converter market.  Due to the take-over of Borg Warner's converter
activities, production at this plant will now be started at the end of 1998
with an increase in total production capacity to 750,000 converters.  At the
same location, a Sachs subsidiary -- Stabilus -- already operates a plant for
the production of gas springs.
    Because of these activities in America, Sachs will double its worldwide
production volume of torque converters to approx. 2 million units by the year
2000.

    Note:
    "The international offering consists of a public offering of shares in
Germany and an international private placement of shares to qualified
institutional buyers abroad.  The private placement of shares in the United
States will be made pursuant to Rule 144A under the Securities Act of 1933."
    "The forward-looking statements set forth in this document are statements
with respect to future developments made on the basis of the current general
economic environment and existing company-specific conditions.  The company
has no duty to update such statements.  Actual future performance, results and
trends could differ materially from those set forth in such statements due to
the occurrence of unanticipated events or difficulties relating to global
integration or other projects, changes in currency exchange rates, changing
economic and competitive conditions, technological developments or other
business-related risks and uncertainties."
    "This press release is not being issued in the United States of America
and should not be distributed to United States persons or publications with a
general circulation in the United States.  This document does not constitute
an offer or invitation to subscribe for or purchase any securities.  In
addition, the securities of Mannesmann AG will not be or have not been
registered under the United States securities laws and may not be offered,
sold or delivered within the United States or to U.S. persons absent from
registration under or an applicable exemption from the registration
requirements of the States securities laws."
SOURCE  Mannesmann Sachs