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Freudenberg and NOK Group Wins Three New Sealing Packages

9 February 2000

Freudenberg and NOK Group Wins Three New Sealing Packages, Global Automotive Sales to Top $4 Billion

    PLYMOUTH, Mich., Feb. 8 -- Recent new business awards, global
capability and its total sealing package approach will help the Freudenberg
and NOK Group to boost its global and American automotive sales to record
heights this year, according to Freudenberg-NOK Automotive Sector CEO Richard
E. Allen.
    "I'm delighted to announce that we have recently won three major total
sealing contracts with North American manufacturers which will help our
group's global automotive sales to grow beyond $4 billion this year and will
push our annual sales rate in the Americas over the $1 billion level," Allen
said.  "It's clear that automakers and tier one suppliers recognize the
dramatic warranty and total cost savings offered by our innovative sealing
technologies, package philosophy, lean production and true global balance."
    Awarded by three different North American manufacturers, the new total
sealing contracts -- which cover undisclosed future engine, transmission and
steering system programs -- demonstrate the breadth of Freudenberg-NOK's
sealing technology expertise, Allen said.
    Globally, with the addition of these three new contracts, the Freudenberg
and NOK Group now has 10 total sealing packages either in development, in
production or already released for production, more than any other automotive
sealing supplier.
    The Freudenberg and NOK Group introduced the auto industry's first total
engine sealing program in 1994 in Europe, launched North America's first total
engine sealing program in 1997 and will put the first global total engine
sealing program into production later this year for the 2001 model year.
Extending the group's series of firsts, the announcement of three total
sealing packages all at once marks yet another first, Allen said.
    Through early involvement with the customer, Freudenberg-NOK's total
sealing approach reduces development costs, creates more robust products,
slashes warranty costs and adds the efficiency of single sourcing for multiple
part numbers.
    "By driving design improvements and relentlessly pursuing lean
manufacturing, we can eliminate unsightly oil and fluid leaks, which, in turn,
can help automakers to enhance customer satisfaction and loyalty," Allen said.
    The company has ample production capacity for the newly won business and
future contracts, Allen said, due to several factors.  These include:  the
company's ongoing lean systems program -- called GROWTTH(R) -- which has freed
up more than 300,000 square feet of manufacturing space since 1992; the
conversion of the company's manufacturing operations into product-focused
factories; new equipment purchases; and new manufacturing facilities slated to
open later this year.
    Enhancing its position as the "Technology Specialist" for total sealing
packages, Freudenberg-NOK also has hired 100 additional engineers and opened
its new, multi-million-dollar Technology Concept Center in Plymouth, Mich.
during the past year.
    Plymouth, Mich.-based Freudenberg-NOK is part of the Freudenberg and NOK
Group Companies, which have total annual sales of more than $6.5 billion.
With global automotive sales of approximately $4 billion, the Freudenberg and
NOK Group ranks among the world's top 20 automotive suppliers and is one of
only eight in the top 100 that has global balance in each of the three major
automotive markets -- Asia, Europe and North America.
    Through a global network of facilities spanning 27 countries with some
23,000 automotive employees worldwide, the supplier group offers its
automotive customers globally integrated products, including sealing packages
for transmissions, engines, brakes, axles and steering, NVH (noise, vibration
and harshness) components and packages, and all rubber, plastic and PTFE
components for suspension, electrical and fuel systems.
    The Freudenberg and NOK Group also offers an extensive portfolio of
precision-molded products for the aerospace, appliance, business machine,
fluid power, marine, medical, off-highway equipment and recreational vehicle
markets.  For more information, visit the Freudenberg-NOK web site at
http://www.freudenberg-nok.com