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Arvin Ind, Inc., & Kayaba Industry Co., Ltd. Announce Joint Venture

21 October 1998

Arvin Industries, Inc., & Kayaba Industry Co., Ltd. Announce North American Joint Venture

    COLUMBUS Ind.--Oct. 20, 1998--Arvin Industries, Inc. , a leading worldwide manufacturer of vehicle exhaust systems and ride control products for the original equipment (OE) and replacement markets, and, Kayaba Industry Co., Ltd., of Tokyo, Japan, a world class manufacturer of automotive and industrial hydraulic products, including suspension systems and power steering pumps, today announced the formation of a new joint venture enterprise to meet the ride control product demands of North American passenger car and light truck manufacturers. The new company will become known as "Arvin-Kayaba, L.L.C." (A-K).
    The joint venture includes the former KYB Industries, Inc., (Kayaba) operation in Franklin, IN and the Arvin Ride Control U.S. (ARCUS) operation in Pulaski, TN. It includes combining the ARCUS design-engineering center previously based in Rochester Hills, MI with Kayaba's design center. It further establishes an Arvin-Kayaba marketing and sales office in Troy, MI.
    A-K will operate as a joint venture with Arvin having an equity ownership of 50.1%. Kayaba will own the remaining 49.9%. The Board of Directors will consist of three Arvin and three Kayaba members.
    Arvin and Kayaba established a similar joint venture in Pamplona, Spain (AP Amortiguadores S.A.) nearly ten years ago to serve the European market. The successful performance of the European joint venture encouraged the establishment of a similar enterprise to meet the needs of North American market. The new company will build on the success each has had individually in the U.S. and will be the largest market share provider in the North American market.
    Commenting on the A-K joint venture, Arvin President and Chief Executive Officer V. William Hunt said, "Together we are stronger and can provide many synergies that will benefit our O.E. customer base. Better design, world class engineering and production techniques, combined with competitive prices will allow A-K to remain a leader in the ride control business. I am delighted with this announcement."
    The joint venture provides A-K with a leadership position in the OE ride control market. The combined strengths offer many synergies to the new company, which will help maintain A-K as the market leader for strut and shock absorber technology. Kayaba's technology and production methodology combined with Arvin's long-standing relationships with North American automakers and its proven ability in lean manufacturing techniques will serve A-K well. The Indiana facility will focus its efforts on struts and the Tennessee facility will continue to develop its expertise in the manufacture of shock absorbers.
    The A-K joint venture will report to David S. Hoyte, President, Arvin Ride & Motion Control Products; and Takashi Sanada, President, KYB; both of whom will be Executive Managing Directors of this new venture.
    For more information on Arvin Industries, Inc., via the Internet, visit our Corporate Home Page at http://www.arvin.com or our Corporate News on the Net site at http://www.businesswire.com/cnn/arv.htm. For information via fax, please call our News On Demand service at 888-622-1161.