MAHLE Takes Over Remaining Shares in Australian Joint Venture

The MAHLE Group headquartered in Stuttgart has extended its piston and ring manufacturing interests in Australia by means of its purchase of ACL's 49 percent share in the newly formed joint venture company, MAHLE-ACL Piston Products Pty Ltd., now MAHLE Engine Components Australia Pty Ltd.

MAHLE-ACL was formed in January 2002 to provide for expansion of ACL's current business to allow it to manufacture powercells for the GM HFV6 engine to be made at its plant.

Since that time a new manufacturing plant has been established and equipped with MAHLE casting, machining and assembly equipment in addition to the other equipment that was transferred for the ongoing business to Ford, Mitsubishi and Toyota, as well as ACL's aftermarket.

The new plant was successfully commissioned early in 2003 and is now ramping up production to meet increasing demand from General Motors and its other OE customers.

MAHLE Engine Components Australia Pty Ltd. is now the sole piston and ring manufacturer in Australia with sales for 2005 expected to be 28 million euros.

The MAHLE Group is the worldwide leading manufacturer of engine components and filter systems. With more than 33,000 employees in over 60 production locations, MAHLE expects to achieve sales of approximately 3.6 billion euros in 2004, making MAHLE one of the 30 principal automotive suppliers throughout the world.

Stuttgart, October 10, 2004