Behr Plans Continued Investment in Dayton Facilities.

Business Editors/Automotive Writers

DAYTON, Ohio--(BUSINESS WIRE)--June 9, 2004

Behr America announced today completion of the first phase of a multi-million-dollar expansion plan in Dayton, taking full ownership of Behr Dayton Thermal Products to mark the end of a two-year joint venture with DaimlerChrysler Corp.

Hans-Joachim Lange, president of Behr America, said that the company's investment exceeded $60 million during the past two years, on pace with Behr's original 2002 plan to spend $100 million to modernize its Dayton manufacturing complex by May of next year.

Lange added that capital spending at the Dayton site is projected to stay on target through the upcoming year. Further investments will occur as Behr Dayton prepares for new business that has been acquired.

"We have booked business of about $800 million that broadens our customer base and will allow us to stabilize employment at our Dayton facilities," Lange said.

The announcements were made at a news conference at Behr's Dayton complex attended by Ohio State Senator Tom Roberts, Dayton Mayor Rhine McLin, Behr Group CEO Dr. Markus Flik and other state, county and city officials.

"Behr Dayton Thermal Products is an important part of Behr's worldwide operations," Flik said. "Expansion in the U.S. is a cornerstone of our global strategy."

"Our goal has been to modernize this facility, introduce new technology and expand its customer base," Behr's CEO added. "With the help and dedication of our more than 1,850 employees in Dayton, we have made significant progress and expect to see even further improvement in the years ahead."

Flik noted that since 2002 productivity and quality have increased, and the facility's North American customer base has expanded to include five major automakers, as well as nearly a dozen other automotive customers.

"Behr has been an excellent partner to date," noted Kermit Dorsey, regional director of the IUE-CWA Region Seven, which represents Behr Dayton's hourly employees. "In 2002, the International Union said it was committed to helping make Behr Dayton Thermal Products successful. We renew that commitment on the company's second anniversary. We believe Behr's ownership of the plant has been, and will be, good for our members, their families and friends and the Dayton community."

Behr currently produces engine-cooling modules, HVAC (heating, ventilation and air-conditioning) modules, evaporators, oil coolers, PCV valves, vapor canisters and plastic parts at its Dayton facilities. New products expected to be added within the next four years include heater cores and certain sub-modules. Some product lines might be expanded.

"This facility has been a part of Dayton and its history for more than 75 years," said Dayton Mayor McLin. "We are encouraged by the significant commitment Behr has made both to the people and the economic viability of our community."

The wide-ranging list of improvements at the 1.1-million-square-foot Dayton complex that will be completed by May of 2005 include more than $35 million in facility renovations and $65 million in improved production facilities and new manufacturing technology. Following is a listing of major projects:

Renovation Projects:

-- Cafeteria, restrooms, break areas, offices

-- Upgraded medical facilities

-- Improved ventilation system 

-- Outside painting, landscaping and signage

-- New main lobby

-- Parking lot paving, expansion

-- Roof replacements

Production Facilities and Equipment

-- Installation of chemical lab

-- New computer system

-- New telephone and communication systems

-- New stamping and forming complex

-- New prototype shop

-- Three HVAC assembly lines

-- New silos and robots for injection molding

-- New heater-core line

-- Condenser and radiator manufacturing lines

-- Assembly lines

With headquarters in Troy, Michigan, Behr America is a leading supplier of engine-cooling and air-conditioning systems to the automobile industry. The company has nearly 3,000 employees at facilities in Troy and Webberville, Michigan; Dayton, Ohio; Charleston, South Carolina, and Fort Worth, Texas.

Behr America's parent company, Behr GmbH & Co. KG, based in Germany, has been supplying automobile makers for nearly 100 years. Group sales in the 2003 business year came to approximately $3.8 billion. Currently Behr employs over 16,000 people in 30 development and production facilities in Europe, North and South America, Africa and Asia.

Additional information is at www.behrgroup.com.