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Acquisition of Marconi's Network Business by Viasystems

25 January 2000

Acquisition of Marconi's Network Components & Services Business - Europe and China - by Viasystems for US$115 Million

    ST. LOUIS--Jan. 25, 2000-- Viasystems Group, Inc. and Marconi plc today announced the sale of Marconi's Network Components & Services business in Europe and China ("NC&S") for US$115 million.
    NC&S was acquired by Marconi as part of its acquisition of Reltec Corporation in April 1999. NC&S is a leading European and Chinese manufacturer of enclosures, electro-mechanical assemblies and sub-assemblies designed for the telecommunications marketplace. NC&S' products include integrated enclosures, racks, sub-racks, heat management systems, cable assemblies and customised power supplies. NC&S has facilities in the United Kingdom, Italy and China as well as joint venture facilities in Denmark and the United States.
    The sale of NC&S is consistent with Marconi's strategy to focus on its core business in high technology transmission and access markets. NC&S will benefit from being part of a leading electronics manufacturing service provider. NC&S will continue to supply certain products to Marconi pursuant to a supply arrangement.
    The transaction is subject to regulatory approvals and other customary conditions and is expected to complete prior to March 31, 2000. The consideration is to be paid in cash on completion.
    Viasystems is a leading worldwide independent provider of electronics manufacturing services and was formed in 1996 by the investment firm of Hicks, Muse, Tate & Furst Incorporated and its management partner, Mills & Partners, Inc. Headquartered in St. Louis, Missouri, the United States, Viasystems operates manufacturing facilities worldwide, supplying customers primarily in the telecommunications and networking industries.