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Behr America Heads for Michigan's Automation Alley

1 June 2000

Behr America Selects Site for New Headquarters
    WALLED LAKE, Mich. - The Behr Group, Europe's leading supplier of automotive 
air conditioning and engine cooling systems, has acquired land near I-75 and 
Rochester Road in Troy, MI, for the development of a new $30-million corporate 
headquarters and technical center, according to Hans Lange, president of 
Behr America.

    Work on Behr America's new 80,000-square-foot headquarters complex is
scheduled to begin this summer with completion in the late spring of 2001,
Lange said.  The 8.5-acre site is located east of I-75 between Rochester and
Big Beaver roads.

    Lange said the new facility will enable Behr to keep pace with a
growing demand for its products in North America, take advantage of
Behr Group synergies and provide additional technical support for
major auto manufacturers such as Ford, General Motors and DaimlerChrysler.

    "The new facility is part of a $120-million investment being made
by the Behr Group in North America to increase the company's presence
in this important market," Lange said.  "Our plan is to more than double our
North American sales from above $220-million last year to approximately $500-
million by 2005."

    Oakland County Executive L. Brooks Patterson said Behr's decision to
locate its North America headquarters and research facilities in Troy was yet
another example of the county's attraction for high-tech businesses.

    "Oakland County's Automation Alley concept has become an increasingly
powerful magnet for drawing high-tech enterprises to the area," Patterson
said.  "We are especially pleased that Behr chose not only to make its
headquarters here, but also decided to develop a major technical center in
Oakland County as well."

    Mayor Jeanne M. Stine of Troy added, "On behalf of the Troy City Council
and the citizens of Troy, we applaud Behr's decision to relocate their new 
corporate headquarters and technical center within our community."

    Behr recently received a $6.5-million Michigan tax credit over 18 years 
from the Michigan Economic Growth Authority (MEGA) for the project, which is 
expected to directly or indirectly create more than 200 new jobs, including 
more than 100 at Behr America.

    In announcing the MEGA grant, Michigan Governor John Engler noted that Behr 
also was about to open a new, multi-million-dollar manufacturing facility 
near Lansing, MI.

    "This is the second time within the past two years that Behr America has 
selected Michigan for a major expansion of its North American operations," 
Engler said.  "The current project will create a number of high-paying jobs 
and represents an important investment in the growing high-tech sector of 
Michigan's economy."

    The expansion project is expected to generate more than $24.8 million in 
revenue to the state over the life of the agreement and produce $310 million 
in personal income, according to an economic analysis done by the University of 
Michigan.

    Lange, who also is a member of the Behr Group's board of management, said 
the new Michigan plant near Lansing in Webberville, MI, will employ an 
additional 125 people.  Production will include the first electronically 
actuated engine-cooling clutches built in North America for Detroit-based 
customers.

    The 60,000-square-foot Webberville plant not only will house assembly
operations, but also a product center with development, design, engineering and 
testing capabilities for fans, clutches and other engine cooling components.  
Grand opening ceremonies are scheduled on June 7.  The product center is 
scheduled to be fully operational by December.

    Behr America is part of the Behr Group, a leading global supplier of
climate control and engine cooling systems for automotive, commercial and 
off-highway vehicle markets.  Headquartered in Stuttgart, Germany, Behr has 
more than 12,500 employees with facilities in eight countries.

    Behr America has approximately 1,100 employees at facilities in
Charleston, SC; Canton, SD; Walled Lake, MI, and Fort Worth, TX.  Its
corporate headquarters currently are in Charleston, S.C.