Pending approval by the German anti-trust authority, business will be integrated into sensor business of the Automotive Systems Division.

Frankfurt am Main, Germany, October 17, 2006. The international automotive supplier Continental intends to acquire the automotive sensor module business of VTI Technology Oy (VTI), the Finish company specializing in micromechanical acceleration and pressure sensors. Subject to the German antitrust authorities' approval, the closing date of the acquisition is anticipated to be October 31, 2006. The value of the acquisition would amount to approx. € 7 million in sales.

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Micromechanical sensor elements and components will play an ever increasing role in automotive solutions of the future, as driving safety and comfort are becoming an essential feature in modern cars. Upon the German antitrust authorities' approval, the acquired sensor module business for automotive suspension control will be integrated into the Automotive Systems Division of Continental AG. The modules are applied among others in chassis and stability control systems to measure e.g. the vertical movements of the car. In addition, the combination of micromechanical sensor components from VTI, which VTI will continue to deliver to Continental Automotive Systems, with the application and technology know-how from Continental offers an exciting potential for the development of new automotive sensors.

"This acquisition will again be a perfect fit for the further complementing of our global sensor business", said Dr. Ralf Cramer, Executive Vice President Business Unit Electronic Brake and Safety Systems and Member of the Management Board of Continental Automotive Systems. This sensor module business will broaden our product range, e.g. by adding new housing and fixing solutions and increasing the measurement range. As stability systems are making inroads into compact and smaller cars, we will technically improve our position to supply the market with the right control systems."

The Continental Corporation is a leading automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2005 the corporation realized sales of EUR13.8 billion. At present it has a worldwide workforce of around 85,000.

As a worldwide leading technology partner to the automotive industry, the Automotive Systems Division of Continental AG integrates extensive know-how and uncompromising quality in the fields of driving safety, embedded telematics and hands-free communication systems, powertrain and comfort. In 2005 the Division achieved sales of approx. € 5.2 billion with a workforce of more than 24,000. Continental Automotive Systems develops and produces electronic and hydraulic brake, stability and chassis control systems, electronic air suspension systems, sensors, engine management and transmission control systems, hybrid drives, cooling fan modules, body and security electronics and also is the industry leader of embedded telematics and communication systems in vehicles.

VTI Technologies is a global market leader in low-g acceleration sensors for automotive industry applications and Cardiac Rhythm Management (CRM). Application areas for the company's motion and pressure sensors include the Automotive industry, Sports & Wellness, Medical & Instruments as well as handheld Terminals. VTI develops and produces silicon-based capacitive sensors using its proprietary 3D-MEMS (Micro Electro Mechanical System) technology, with application areas in acceleration, inclination, shock, vibration, angular rate and pressure measurement.
VTI is owned by EQT III private equity fund. VTI's net sales in 2005 totaled EUR 74.7 million and the company has approx. 700 employees. Along with the head office in Finland and its global partner network, VTI's international sales and marketing network includes offices in Germany, USA, Japan and China. Besides Finland, VTI also has manufacturing operations in Mexico. Further information: www.vti.fi