(Nuremberg/Germany) – LEONI AG and TRW Inc. announced today that LEONI has agreed to acquire the operations of Lucas Rists Wiring Systems, based in Newcastle under Lyme, Staffordshire, England. Under the terms of agreement LEONI AG, based in Nuremberg, Germany, will acquire the assets of Lucas Rists Wiring Systems which develops and supplies wiring harnesses, cable, high tension leads and battery cables to European vehicle manufacturers. The business employs 4000 people at 6 production facilities in Europe and North Africa. Financial terms of the transaction are not being disclosed. The acquisition still needs to be approved by the German anti-trust commission.

"We are delighted with this acquisition which represents the most significant strategic investment ever made by the company", said Mr. Ernst Thoma, Chairman of the Board of Directors of LEONI AG. "Through it we have increased the turnover of our Wiring Systems Division by over 40 %, significantly extended our customer base to include the BMW Group and gained access to new product lines. LEONI Wiring Systems Division will also benefit from Lucas Rists engineering expertise and vehicle systems know how.?
LEONI AG believes that the acquisition is an excellent fit with its strategy to focus resources on developing existing core competencies, such as automotive wiring systems.

LEONI AG, founded in 1917 as Leonische Drahtwerke AG, has in recent years expanded the global reach of its Wiring Systems Division and now supports its automotive customers from a worldwide wiring harness manufacturing network, with 17 facilities in 13 countries, employing 8.300 people.

In recent years LEONI AG has recorded significant growth in sales and net profits. Group sales, including Wire, Cable, and Wiring Systems Division, reached 1.2 billion DEM in 1999 and pre-tax profits of more than 65 Mill. DEM. The Group worldwide employs approximately 12,000 staff. The company recently forecast that, excluding Lucas Rists, Group sales in 2000 will increase to 1.5 billion DEM. Major customers of the LEONI Wiring Systems Division include Audi, DaimlerChrysler, General Motors, Porsche and Volkswagen.

Over the forthcoming months, management from both LEONI AG and Lucas Rists will focus on the detailed integration process necessary to maximise the efficiency and synergies of the acquisition. The detailed proposals, to be drawn up by the Integration Teams, will cover all areas of the combined automotive operations including manufacturing capacity, engineering capabilities, and sales and marketing resources.
Mr. Uwe H. Lamann, member of the board of LEONI AG and President of the Wiring Systems Division, commenting on the future for the enlarged LEONI Group said "Both LEONI and Lucas Rists enjoy excellent relationships with their customers. I am sure that by combining resources and expertise we will be better positioned to grow the business over the long term. I am sure the new business will achieve great success.”

BMW welcomes this strategic move by LEONI AG as it strengthen LEONI’s efforts to broaden their entire customer base.