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Mannesmann VDO Acquires Halla Electronics Corp. Korea

23 March 1999

Mannesmann VDO Acquires Halla Electronics Corp. Korea

    DUSSELDORF, Germany, March 23 -- Mannesmann VDO, specialist
in automotive systems and worldwide market leader in both instrumentation and
fully integrated information systems, took over 100% of the shares in Halla
Electronics Corp. (HEC), Chongwon.  The agreement with Mando Machinery Corp.
and Ford Motor Company, which had a 50% share each in the company's equity
capital of Euro 16 million, has now become effective.
    HEC, supplier to Korean motor-vehicle manufacturers, develops and
manufactures automotive instrumentation, engine control devices and sensors as
well as heating and air-conditioning control.  The company, meanwhile renamed
VDO Halla Korea Ltd., achieves annual sales of approximately Euro 50 million
with almost 400 employees.