DaimlerChrysler subsidiary to locate in Charleston region

December 5, 2002 – MTU Drive Shafts, the world’s largest manufacturer of passenger-car drive shafts, will bring its business to the North American market through the establishment of a new operation in North Charleston, S.C. Today’s announcement was made in conjunction with the Charleston Regional Development Alliance, an organization devoted to diversifying the region’s economic base.

MTU Drive Shafts, LLC, a wholly-owned subsidiary of DaimlerChrysler, announced today that it will produce its drive shafts in the Palmetto Commerce Park off Ladson Road. MTU’s new operation will be located adjacent to a Freightliner LLC facility, which currently builds American LaFrance fire and emergency services vehicles.

Company officials said production capacity in the new operation could reach one million drive shafts per year. A total workforce of more than 200 is expected by 2006. The North Charleston plant will produce drive shafts for premium automotive companies in North America.

Rob Tykal, President of MTU Drive Shafts, LLC, noted: “Our customers expect just-in-time delivery and high flexibility. By assembling the drive shafts here in the U.S, we are much better equipped to meet these requirements.”

Dr. Thomas Breit, Project Manager, noted that the Charleston region was chosen for today’s announcement as the result of a careful selection process. The company considered 50 potential East Coast locations, weighing carefully each area’s infrastructure, transportation connections and many other issues. MTU expects to begin production in its new facility by 2004.

F. Eugene (Gene) Williams, Chairman of the Charleston Regional Development Alliance, welcomed today’s announcement. “As a community, our economic development efforts face tough global competition. It’s gratifying to know that we emerged victorious from a list of 50 competitors, especially with a company of such high caliber as MTU Drive Shafts, “ he said.

“Congratulations to our new friends at MTU,” said Charleston County Council Chairman, Tim Scott. “We are honored to host another ‘high-octane’ Daimler company, and it’s great for Charleston to be associated with this high-performance, gold standard product,” Scott said.

North Charleston Mayor Keith Summey also welcomed the addition of MTU Drive Shafts to the region’s community of manufacturers. “Attracting a top-notch, global company such as MTU is a big win for our community. This announcement not only means new jobs for our residents, it also means an even stronger base of international trade.”

In facilitating competitive business announcements, the Charleston Regional Development Alliance works with numerous agencies. One of the critical relationships it has is with the South Carolina Department of Commerce.

“South Carolina’s automotive supplier network continues to build and lead economic development in the state,” said Governor Jim Hodges. “MTU Drive Shafts’ decision to locate in the Charleston region is proof positive that our state has everything a successful company could want to keep its momentum going. We are delighted MTU Drive Shafts chose South Carolina.”

Secretary of Commerce Charles S. Way, Jr. also welcomed the news: “As a worldwide leader in quality drive shafts, MTU understands that prosperity begins with a solid, working relationship between state and local government leaders and economic allies,” he said. “Team South Carolina’s cooperative effort to create jobs and investment has again hit the mark with real success.”

Since 1970, MTU has produced drive shafts for passenger cars and light trucks with rear- and all-wheel drive. The company is currently the market leader for passenger car drive shafts, holding 26% of the worldwide share.

The Charleston Regional Development Alliance represents Berkeley, Charleston and Dorchester counties. Its mission is to broaden and diversify business investment in this region, with a new emphasis on technology-intensive business sectors. Since its inception, the Alliance has worked with thousands of companies to help promote business investment and quality growth in the area. To learn more, go to www.charleston-for-business.com.

To learn more about the drive shafts produced by MTU, visit www.mtu-friedrichshafen.com.