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Gerodisc Traction Control System Selected Ford Mustang Cobra R

2 November 1999

Gerodisc Traction Control System Selected for Production High-Performance Ford Mustang Cobra R

    LAS VEGAS--Nov. 1, 1999--

Competitive Testing Proves Gerodisc's Performance Advantage

    For automotive performance enthusiasts and industry personnel, the annual SEMA Show is the holy grail. The 1.5 million square-foot SEMA Show showcases the most advanced automotive thinking in a trade show environment with over 5200 displays. High-performance equipment and vehicles abound, as vehicle manufacturers try to "one-up" the competition with their newest, hottest products.
    Two of the most exciting vehicles on display are the Ford Mustang Cobra R, and the Ford Racing Mustang Concept Car. While the Ford Racing Mustang Concept Car is a one-off showcar, the Mustang Cobra R is headed for production, further elevating the Mustang performance heritage.
    The Mustang Cobra R is a high performance, high horsepower sports vehicle, with suspension and driveline to match. Key to getting the power to the ground is the Gerodisc traction control device, licensed to Ford by McLaren Traction Technologies. The patented Gerodisc is a state-of-the-art traction control unit, featuring a unique, tunable system that continuously monitors driving conditions and changes the power distribution to each driving wheel accordingly.
    The McLaren Gerodisc traction control system features the award winning Gerodisc hydromechanical coupling in the final drive unit that distributes the engines' power to the wheels in a highly controlled fashion, providing optimal traction. The power can be distributed in any proportion, depending on wheel slip, and up to 100% of the power can go to a single wheel if that wheel has grip.
    Unlike other traction control systems in which the power is distributed in a pre-determined proportion, the McLaren Gerodisc system varies the power distribution in an infinite number of combinations. It determines the grip available to each wheel in milliseconds, and requires no action from the driver.
    The McLaren Gerodisc technology was a recipient of the prestigious Automotive News PACE Award in 1999 for advanced technology. The system is simple, durable, and relatively inexpensive when compared to bulky mechanical units or sensitive electronically controlled devices. The Gerodisc has the flexibility to be used on all types of vehicle drive configurations - FWD, RWD, AWD and 4WD.
    McLaren Traction Technologies licenses its Gerodisc technology to auto makers and axle manufacturers. Included in those licensees are Daimler Chrysler/New Venture Gear (for the Jeep Grand Cherokee transfer case application) and Steyr (for European applications). McLaren Traction Technologies is a business unit of McLaren Automotive Group.
    McLaren Automotive Group is a full service, ISO 9001 registered contract engineering company, with locations in Livonia, Mich. and Santa Barbara, Calif. The McLaren Engines unit capabilities include full production, prototype, and racing powertrain design and development programs, software/calibration and development, emission testing and certification programs, prototype component and vehicle builds, driveability development, component/vehicle durability testing, system design/development/mapping and manufacturing, and field service support.
    The Ford Mustang Cobra R will be unveiled at the 1999 SEMA show, booth 2064, on Wednesday, Nov. 3, 1999 at 10:30AM.

    This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created thereby. These statements include the plans and objectives of management for future operations, including plans and objectives. The forward-looking statements herein are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgements with respect to, among other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any one of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this Release will prove to be accurate.

    McLaren Engines and McLaren Traction Technologies are divisions of McLaren Automotive Group. The stock is traded on the NASDAQ Small Cap Market .