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TI Group Beats Toughest Emissions Legislation

25 January 2000

TI Group Beats Toughest Emissions Legislation and Announces $120 Million Contract Win

    NEW YORK--Jan. 24, 2000--UK-based TI Group plc, the global specialized engineering company, today announced that its Automotive Systems division has won a significant contract as a result of its ability to deliver advanced evaporative emissions solutions that meet all global environmental standards, including the latest and toughest LEV II standards in the United States.
    Tighter emissions legislation continues to be led by the United States, and in particular by California, and is closely followed by Europe and the rest of the world. The tougher legislation represents an important growth driver for TI Group in global automotive markets for fuel storage and delivery systems.
    As a result of the acquisition of Walbro Corporation in June 1999, TI Group added the necessary skills and expertise in fuel storage to offer global automotive customers an integrated fuel storage and delivery system. With the high level of knowledge and service within Automotive Systems, TI Group is able to deliver engineered solutions to solve customer problems.
    This unique ability has resulted in the award of a multi-country contract with one of the world's top automotive manufacturers to supply a complete fuel tank system that is worth up to $120 million per year at full volume. This international win, which meets the latest LEV II emissions standards, includes the fuel tank, filler pipe, fuel delivery module, turbine fuel pump and fuel and vapor lines.
    Commenting on the news, Allan Welsh, Chief Executive TI Group Automotive Systems, said:
    "This win clearly demonstrates the strategic rationale and benefit of making the Walbro acquisition. We continue to focus on increasing the value of our products per vehicle. Before both this and the earlier S&H acquisition we were winning contracts in the region of $30 per vehicle - we are now regularly securing business in excess of $200 per vehicle. We are already established as a major player in the $6.5 billion fuel market and, as this tighter emissions legislation comes into force, there are excellent prospects for growth."

Notes to Editors:

    TI Group plc, listed on the London Stock Exchange, is one of the world's leading specialized engineering companies. Headquartered in the UK, the Group operates on a global basis, employing over 40,000 people at more than 450 manufacturing and customer facilities in over 45 countries.
    TI Group Automotive Systems is one of TI Group's four world leading businesses, the others being John Crane (engineered sealing systems), TI Group Specialty Polymer Products (engineered polymer solutions) and Dowty (aerospace systems). Group sales revenue in 1998 was (pound)2.1 ($3.4) billion, of which 45% was North America, 27% Continental Europe, 20% UK and 8% in the rest of the world.
    A detailed description of TI Group and its businesses can be found on the company's web site at www.tigroup.com.

Emissions Legislation

    Since 1995 vehicles in the US have been required to emit no more than 2 grams a day of evaporated hydrocarbons. Where the US leads, Europe and the rest of the world tend to follow. From 2000, European vehicle makers must meet the 2 grams a day limit.
    US rules however are becoming even tighter. Between 2004 and 2006 new US legislation, known as LEV II (Low Emission Vehicle II), will reduce that 2 grams limit to 0.5 grams a day. To put these targets in context, even before any fuel is put into the tank, a vehicle will emit between 0.3 to 0.35 grams of evaporated hydrocarbons a day. So the most that the vehicle's fuel system itself can emit by 2004 is just 0.15 to 0.2 grams, a reduction of more than 90%. Anyone hoping to export to the US will have to meet the same target.