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Siemens Strengthens Diesel Technology Capabilities With Mannesmann Rexroth Acquisition

8 December 1999

Siemens Strengthens Diesel Technology Capabilities With Mannesmann Rexroth Acquisition
    REGENSBERG, Germany, Dec. 7 -- Siemens Automotive has
expanded its expertise in the area of diesel injection systems with the
acquisition of the automotive operations of Mannesmann Rexroth AG.
    Rexroth Automotive, based in Lohr am Main, Germany, develops and
manufactures high-pressure pumps for high-pressure fuel injectors.
    As an emerging diesel technology specialist, this acquisition enhances
Siemens Automotive's ability to focus on complete diesel system solutions.
The Rexroth pump is used in diesel injection systems that feature second-
generation common rail technology.  Siemens will be the first company to
supply this technology to the automotive industry at the end of 2000.
    The two companies had been working in partnership to develop specialized
high-pressure diesel pumps.  The acquisition was a strategic move to enhance
Siemens' diesel systems competence and compliments its existing technology.
The range of products for the high-pressure diesel injection also includes
piezohydraulic injectors, actuators with corresponding sensors, engine control
electronics and the fuel rail.  Siemens Automotive has invested more than $91
million in its overall high-pressure diesel injection project.
    In 1998 Mannesmann Rexroth Automotive achieved roughly $29 million in
sales.  Approximately 120 people are based in its production facility in
Seckach, Germany, and the Lohr am Main site contains about 130 employees
involved in research and development, sales and quality management.  Siemens
will add the 250 employees to its team.
    Mannesmann Rexroth AG, The Drive & Control Company earned $2.8 billion in
sales in 1998.  It has technical expertise in the fields of mobile and
industrial hydraulics, automation and foundry operations.
    This acquisition is another key step in Siemens Automotive's pursuit of
diesel systems expertise, as is this year's $100 million development of a
diesel injector joint venture, in partnership with Navistar, in Columbia, S.C.
    Siemens Automotive is a tier-one supplier of automotive and electrical-
electronic systems and components with applications covering gasoline and
diesel powertrain systems, safety and chassis systems, body electronics,
electric motor drives and driver information systems.  Worldwide sales in
fiscal year 1998/1999 totaled $3.6 billion.