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200 Million DaimlerChrysler Contract for TI-Group

11 May 2000

TI Group, the global specialised engineering company, today announced that its Automotive and Specialty Polymer divisions have secured business worth over 200m to supply DaimlerChrysler's recently launched new Mercedes C-class car with complete fuel storage and delivery systems, brake lines and airbags.

TI Group Automotive Systems has designed and developed the complete fuel tank system for the C-class, including a two-chamber co-extruded fuel tank, fuel module and pump, fuel lines and filler pipe system.

An on board vapour recovery system has also been developed for the North American market that meets the most exacting standards on fuel evaporative emissions. The fuel system will incorporate a number of innovations, including strap-fixing to help reduce Noise, Vibration and Harshness through the use of welded plastic components.

TI Group Specialty Polymer Products has won contracts worth over 5 million to supply Driver and Passenger airbags together with Rear sidebags on the C-class.

As a result of the acquisition of Walbro Corporation in June 1999, TI Group added the necessary skills and expertise in fuel storage to offer global automotive customers an integrated fuel storage and delivery system. TI Automotive Systems is able to deliver fuel systems solutions that meet all global environmental standards, including the latest and most stringent LEV II standards on evaporative emissions in the United States. Tightening legislation on emissions represents an important growth driver for TI Group in global automotive markets.

TI Automotive Systems expects to supply the Mercedes C-class with some 330,000 complete fuel storage and delivery modules a year at full production. With an anticipated programme lifetime of 6-7 years, supply will be from the new Rastatt plant with delivery to the DaimlerChrysler manufacturing facilities at Sindelfingen and Bremen.

Allan Welsh, Chief Executive of TI Group Automotive Systems, said:

"In January, TI Group Automotive Systems was awarded a multi-country contract with one of the world's top automotive manufacturers to supply a complete fuel tank and delivery system worth $120 million per year at full volume. Now the C-class launch clearly demonstrates that we not only can win major global contracts, but also successfully bring new technologies to market, through the complex launch process."

"This is a clear validation of the strategic rationale behind the acquisition of Walbro last year and the benefits of forming TI Group Automotive Systems which is helping our focus on increasing the value of our products per vehicle. Legislation on evaporative emissions is a major driver in the $6.5 billion fuel market where we are a major player with excellent growth prospects."

For further information please contact:

Richard Poston 020 7560 5739
Director of Communications
TI Group plc

David Nicholas 020 7560 5728
Head of Media Relations
TI Group plc

Tom McDonnell (212) 319 3101
Vice President, Communications
TI Group Inc., New York


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