Arvin Acquires Majority Stake in Shanghai Joint Venture

14 February 2000

Arvin Acquires Majority Stake in Shanghai Joint Venture; Equity Ownership Increased to 55% From 35%

    COLUMBUS, Ind.--Feb. 14, 2000--Arvin Industries, Inc. a leading producer of automotive components, announced today that it has acquired a majority position in its Shanghai, China joint venture exhaust firm, Shanghai Hua Wen Exhaust Systems Company Limited, increasing its equity stake to 55% from 35%.
    The additional shares were acquired from Arvin's joint venture partner, Xian Hua Group Company Limited.
    The Shanghai operation supports two of Arvin's key global customers, General Motors and Volkswagen, by supplying parts to their local joint ventures, Shanghai General Motors and Shanghai Volkswagen.
    "Arvin's increased commitment to the Chinese market continues following several years of ongoing development activity. We have positioned ourselves to support our original equipment customers across the world with Arvin products and technology," said Wesley B. Vance, President of Arvin Exhaust.
    With the additional equity holding, Arvin will also introduce its state-of-the-art catalytic converter technology to the Shanghai operation in early 2000. With the addition of the converter product, Hua Wen will become a complete supplier of exhaust systems to its customers.
    "Our global customers expect our continued support and commitment to their programs in China," said Mr. Vance. "This investment reaffirms Arvin's dedication to supporting our customers in China and our commitment to providing our most current technology to the Chinese market. With environmental regulations changing so quickly, we feel the increased investment and new technology will provide the Shanghai Hua Wen operation with a strategic advantage in the Chinese marketplace."
    Arvin Industries, Inc., is a global manufacturer of automotive components with over 60 manufacturing facilities and 6 technical centers located in 22 countries. Arvin is a leading manufacturer of automotive exhaust systems; ride control products; air, oil and fuel filters; and gas charged lift supports. Our replacement products are sold under various trademarks including Arvin, Maremont, Timax, ANSA and ROSI exhaust systems; Gabriel and RydeFX shock absorbers; Purolator filters; and StrongArm gas charged lift supports.
    For more information on Arvin Industries via the Internet, visit our Corporate Home Page at http://www.arvin.com or our Corporate News on the Net site at http://www.businesswire.com/cnn/arv.shtml. For information via fax, please call our News On Demand service at 888-622-1161.