Integrating Motorola's automotive electronics business into the Powertrain and Chassis business unit has brought Continental closer to its customers in North America and Asia.

Frankfurt am Main, Germany, November 6, 2006. Following the acquisition of Motorola's automotive electronics business by the international automotive supplier Continental AG, its Automotive Systems Division's global market share of engine management and transmission control systems has doubled. The integration offers twin benefits: firstly, the product portfolios in electronic engine management and transmission controls complement each other and, secondly, the Powertrain and Chassis business unit, whose employee number has grown from 1,700 to 3,200, has gained development sites in North America and is hugely expanding its presence in Asia.

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Continental Automotive Systems is not only a leading global manufacturer of engine management systems for medium-heavy and heavy commercial diesel engine vehicles, it is also among the top flight of companies developing and producing control units for gasoline engine passenger cars. Consequently, the product portfolio can be expected to expand to include engine management systems for diesel engine passenger cars.

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Continental Automotive Systems is equally firmly established in the area of transmission control units, where it now has all the technologies needed to satisfy customer requirements in terms of design (external or integrated into the transmission system) and scope of software function. In future, customers will be able to benefit from this know-how being under one roof.

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Complementary control unit expertise for growth in North America and Asia
Continental Automotive Systems is now able to provide high-quality local support for its systems engineering partners and Tier1 suppliers. "We will increase our engineer numbers in Japan tenfold and we will accelerate from 0 to 60 development engineers in China. This leap in the Chinese growth market is of great significance", said Dieter Rogge, head of the Powertrain and Chassis business unit.

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"Our standing in North America has gained even more", commented Tom Tischhauser, responsible for the North America business of the Powertrain and Chassis business unit. "360 of the 450 new engineers are employed in the Chicago and Detroit development centers alone. Many of our engineers have had a close working relationship for years with US vehicle manufacturers. This greatly eases our customer access and makes it easier to develop new business". Rogge sees excellent opportunities for Continental Automotive Systems being able to profit from the changes in attitude in the USA. "Within the foreseeable future, US manufacturers, too, will be supplying large SUVs and pick-ups with diesel engines. Our know-how combined with our physical proximity will then be a strong argument in our favor."

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.

In 2006 Continental Automotive Systems celebrates altogether 100 years of successful automotive technologies. The slogan "Forward Thinking" points to the future and the mission to keep pushing for new dimensions in safe mobility and the joy of driving cars.