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Atecs Mannesmann: Further Strong Growth in 2000

22 March 2000

Atecs Mannesmann: Further Strong Growth in 2000; Going Public in June, EBITDA to Double by 2004

    DUESSELDORF, Germany, March 21 Following the presentation
of the new name for the Automotive and Engineering Divisions of Mannesmann on
March 2, 2000, Atecs Mannesmann AG is now presenting itself officially for the
first time at the Hanover Fair.  The five world market leaders Rexroth,
Dematic, Demag Krauss-Maffei, VDO -- now together with Siemens Automotive --
and Sachs will in future appear in the market under the Atecs umbrella.
    Atecs is a powerful new global player in the field of technology, which
through outstanding product innovations and well-known brand names today
already enjoys an excellent world-wide position in quickly growing markets of
the future.  Atecs' outstanding market positions are based on the strategy of
dynamic portfolio development.  Through more than forty divestitures and
thirty acquisitions, the Atecs divisions have over the last five years been
focused on their strengths in a carefully targeted way.  The joint venture now
agreed between Atecs and Siemens Automotive, which creates a leading world-
wide supplier of high-tech electronic systems for automobiles, is the latest
example of the successful strategy of value-oriented portfolio management.
The additional earnings potential is around 400 million euros a year in the
medium term.
    The strong growth potential of Atecs is convincingly documented by
business developments in the first two months of 2000.  Compared with the
corresponding prior-year period, sales increased by 16%, and order received
rose by a substantial 31% to produce a total order volume of 2.4 billion euros
in the months of January and February 2000 alone.
    In 1999, Atecs Mannesmann with a total of 90,000 employees world-wide
achieved sales of 12.3 billion euros; EBITDA (earnings before interest, tax,
depreciation and goodwill amortisation) was around 1.1 billion euros.  The
target is to double this level of earnings by 2004, equivalent to a CAGR of
15%.  Together with the lower level of debt at less than 20% of equity, the
basis is therefore created for further strong growth.  The medium-term target
is a return of 20% on assets employed.
    With these attractive return and earnings targets, Atecs will be floated
on the stock market in June 2000.  It is planned to place more than 50% of the
Atecs share capital in an initial tranche.  With its extraordinary potential,
Atecs Mannesmann AG is a promising candidate for inclusion in the DAX 30.

    Disclaimer on Financial Projections
    By their nature, the financial projections contained in this press release
involve risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future; many of which are not within
Mannesmann's control.  Accordingly there can be no assurance that actual
events and results will not differ materially from those expressed or implied
by these projections.