03/15/2011

• Contribution will double the plant's production capacity in five years
• Investment is part of Continental’s growth strategy in tire operations worldwide
• 400 jobs to be added to the existing 1.150 / Market share on record level in Brazil

Camaçari, Brazil, March 15, 2011. The international automotive supplier and tire producer Continental will invest US$ 210 million to expand production capacity of its tire plant located in the Industrial Park of Camaçari, Bahia, Brazil. “This investment is part of Continental’s strategy to grow our tire operations worldwide significantly, especially in the BRIC countries. It will allow us to almost double the production capacity of the Camaçari plant by the end of 2015,” said Matthias Schönberg, Chief Executive Officer Continental Tire the Americas. In 2010, the Continental factory produced about 4.5 million passenger tires and 350,000 truck tires.

This year, capacity will increase to more than 5 million passenger tires and 450,000 truck tires.

"We are announcing this second wave of the initial investment of US$ 260 million realized in 2004. The goal is to expand production to meet the expected growth of the markets supplied by this plant in NAFTA, the economic bloc formed by the United States, Canada and Mexico, and Latin America, in which Brazil occupies a prominent position", explains Renato Sarzano, General Manager at Continental Tire in Latin America.

"This investment will allow us to streamline processes, install new equipment and will add 400 direct jobs, benefitting the entire region,” said Pedro Matos, Managing Director of the plant in Camaçari. The plant currently employs 1,150 people. Officially opened in April 2006, just 18 months after the laying of the cornerstone, the first Continental tire plant in Brazil occupies a total area of 8,611,128 sq ft and was designed to allow expansion.

 Last year, Continental's market share in Brazil reached a record level in the replacement segment of Passenger and Light Truck Tires and recorded one of its best operating results in Brazil with a 25% increase in the volume of tires sold in 2010 versus 2009 and 38% in the CVT segment. Worldwide Continental produced and sold more than 100 Million Passenger and Light Truck Tires.