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ALLIEDSIGNAL, KNORR-BREMSE PLAN AIR-BRAKE JOINT VENTURE

 SOUTHFIELD, Mich., March 17 /PRNewswire/ -- AlliedSignal Inc. (NYSE: ALD) of Morris Township, N.J., and Knorr-Bremse AG of Munich, Germany, today announced that they have signed a memorandum of understanding to create a joint venture to provide air-brake controls and related products to the truck industry.
 The agreement was announced jointly by Lawrence A. Bossidy, chairman and chief executive officer of AlliedSignal Inc., and Heinz Hermann Thiele, chairman of the executive board of Knorr-Bremse AG. A final agreement is expected by June 30, 1993. Financial terms were not announced. Annual sales of the joint venture will be approximately $650 million.
 Bossidy said, "Consistent with our vision of serving customers on a worldwide basis, the proposed organization will include all truck air- brake operations of both companies in North America, Europe and South America and will integrate to the extent possible our truck air-brake activities in the Asia and Pacific regions."
 Mr. Thiele declared, "Technical leadership and shared development of electronic antilock braking systems and other global product lines, as well as global sourcing of products, will enhance our ability to meet customer requirements on both a national and an international scale."
 "This agreement will help us grow our business, strengthen our commercial vehicle product lines, broaden our technical capabilities and allow us to provide better support to vehicle manufacturers as they operate more globally," said Ralph E. Reins, executive vice president of AlliedSignal Inc. and president of AlliedSignal Automotive in Southfield.
 A management board in which both Knorr-Bremse and AlliedSignal will be equally represented will coordinate and give direction to the joint venture.
 AlliedSignal will own 65 percent of and will manage the North American operations, including Mexico. Knorr-Bremse will own 65 percent of and will manage the European and South American operations of the joint venture. The North American and Mexican operations will he headquartered in Elyria, Ohio, and will include AlliedSignal's truck brake systems operations, which provide Bendix brand air-brake controls and related products for the truck industry from three U.S. plants and from another in Mexico. The joint venture's European base will be located in Munich and will consist of AlliedSignal Automotive's European truck businesses in Bristol, England, and Milan, Italy, and Knorr-Bremse's truck brake division in Munich, with main subsidiaries in France, Hungary, Italy and the Czech Republic.
 The joint venture will have manufacturing operations in nine countries with about 4,600 employees.
 According to Don DeFosset, vice president and group executive for AlliedSignal Turbocharging & Truck Brake Systems, "The joint venture benefits both partners, since our worldwide product lines, manufacturing and customers are complementary."
 The joint venture will not affect AlliedSignal's worldwide turbocharger or passenger car/light truck hydraulic brake systems businesses, or its other businesses, nor will it affect Knorr-Bremse's worldwide rail brake business or its other businesses.
 AlliedSignal Automotive, which is based in Southfield, is a $4.5 billion unit of AlliedSignal Inc., an advanced manufacturing company with 89,000 employees serving customers worldwide with quality aerospace and automotive products, chemicals, fibers, plastics and advanced materials. Net sales of AlliedSignal Inc. in 1992 were $12 billion.
 Knorr-Bremse is an independent industrial group with $750 million turnover and approximately 6,800 employees worldwide, with a focus on brake systems for rail vehicles and heavy trucks.
 -0- 3/17/93
 /CONTACT: Jim Fisher, 313-827-5454, or Mark Greenberg, 201-455-5445, both of AlliedSignal/
 (ALD)


CO: AlliedSignal Inc.; Knorr-Bremse AG ST: Michigan, Ohio, New Jersey IN: AUT SU: JVN

DH -- DE001 -- 6882 03/17/93 08:33 EST
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Date:Mar 17, 1993
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