Johnson Controls to Acquire Varta Automotive Battery

Business MILWAUKEE, U.S.A. 6. 8. 2002 (PROTEXT/ots) - JohnsonControls, Inc., and VARTA AG today announced an agreementwhereby Johnson Controls expects to acquire Varta's AutomotiveBattery Division, a major European automotive batterymanufacturer. Johnson Controls will pay Euro 312.5 million forVarta's automotive battery business. The completion of theacquisition, which is anticipated to be slightly accretive toJohnson Controls fiscal 2003 results, is contingent uponreceiving customary regulatory approvals. The transaction istargeted to close near the end of the calendar year.

Johnson Controls said that when the acquisition is complete,it expects to have annualized battery sales of approximately US$1.8 billion with a market leadership position in Europe as wellas in the Americas. Varta's Automotive Battery Division,headquartered in Hannover, Germany, reported fiscal 2001 salesof Euro 590 million and earnings before interest and taxes (EBIT)of Euro 29 million. It operates six battery assembly plants inEurope located in Austria, Czech Republic, France, Germany andSpain. Varta manufactures automotive batteries for BMW,DaimlerChrysler, Ford, PSA, Volkswagen and other automakers inEurope. The company is also a major supplier to the Europeanindependent aftermarket, including customers such as RobertBosch GmbH, hypermarkets such as Carrefour, and wholesalers.

Varta's research and development efforts include thedevelopment of batteries for emerging higher energy, higherpower and longer life automotive applications such as dualbattery systems, 42-volt electrical systems and battery solutionsfor hybrid vehicles.

The company has programs underway with a number of automakersthat focus on lead-acid AGM as well as nickel metal hydride andlithium-ion battery systems.

"Varta's scale and commitment to technology improvement willenable us to effectively serve the increasing needs of vehiclemanufacturers in Europe," said Keith Wandell, president of theJohnson Controls battery business, "and will position us toserve the global requirements of vehicle manufacturers. In theaftermarket, the well-known Varta brand will help us support ourgrowing aftermarket customers."

"We are very pleased to join with Varta," added Giovanni(John) Fiori, Executive Vice President of Johnson Controls andPresident, International. "Varta is known for quality and provenproduct and process technology. Together, our companies havemany opportunities to exceed the expectations of our customers.""Through the combination of Johnson Controls and Varta we createa leading global player in the battery industry. In anenvironment characterized by ongoing globalization of ourcustomers and suppliers, this transaction became necessary tosecure long-term success," said Dr. Georg Prilhofer, Chairman ofthe Executive Board of VARTA AG. "Johnson Controls and Varta fittogether well not only because of their complementary geographicpresence but also because of similar corporate cultures."

Varta and Johnson Controls have been partners in a SouthAmerican battery joint venture and in fulfilling Ford MotorCompany's original equipment needs in Europe since 1997.

Varta's Automotive Battery Division is owned by VARTA AGwhich is 92% owned by a consortium led by DB Investor, a 100%subsidiary of Deutsche Bank AG. The Varta Automotive BatteryDivision consists of VARTA Automotive GmbH and the 80% majoritystake of VARTA AG in VB Autobatterie GmbH. The current 20% stakeof Robert Bosch GmbH in VB Autobatterie GmbH will be continued.

Johnson Controls is a U.S.-based supplier of automotiveinterior systems and facility management and control. It is alsoa leading automotive battery supplier in North and South Americawith annualized sales of $1.2 billion. Its original equipmentbattery customers include DaimlerChrysler, Ford, Honda, Nissanand Toyota. The company supplies private-label aftermarketbatteries for Advance Auto, AutoZone, Costco, Interstate BatterySystem of America, Pep Boys, Sears, Wal-Mart and others. Thecompany's European automotive battery presence currentlyconsists of the operations of German manufacturer HoppeckeAutomotive, which Johnson Controls purchased in October 2001.

Johnson Controls offers its customers a full range of lead-acid batteries for the automotive market including traditionalflat-plate flooded products as well as both spiral cell andprismatic AGM batteries for 14 or 42 volt electrical systems.

The company has made forward-looking statements in thisdocument that are subject to risks and uncertainties. Forward-looking statements include information concerning possible orassumed future risks and may include words such as "believes,""expects," "anticipates" or similar expressions. For thosestatements, the company cautions that numerous important factors,including receiving regulatory approvals, completion of thetransaction, the acceptance or adoption of certain batterytechnologies, U.S. dollar exchange rates and those discussed inthe company's Form 8-K (dated November 9, 2001), could affect thecompany's actual results and could cause its actual consolidatedresults to differ materially from those expressed in anyforward-looking statement made by, or on behalf of, the company.

Johnson Controls, Inc. is a global market leader inautomotive systems and facility management and control. In theautomotive market, it is a leading supplier of seating andinterior systems and batteries. For non-residential facilities,Johnson Controls provides building control components and systemsand facility management services.

Johnson Controls (New York Stock Exchange: JCI), founded in1885, has its headquarters in Milwaukee, Wisconsin. The Europeanheadquarters is in Burscheid, Germany. Its sales for 2001totaled 18.4 billion US-Dollars, the Automotive Systems Groupalone accounting for 13.6 billion US-Dollars of this figure. Inthe current "Industry Week" business magazine rankings, JohnsonControls has been listed as one of the top 100 best runcompanies in the world for the fifth time in succession.

ots Originaltext: Johnson Controls

Further information is available from: Johnson Controls, Inc.Glen L. Ponczak 5757 N Green Bay Ave POB 591 Milwaukee, WisconsinTel. +1 414/524-23 75 Fax: +1 414/524-32 00

Johnson Controls GmbH

Astrid Schafmeister Industriestraße 20-30 D-51399 BurscheidTel.: +49 21 74/65-31 89 Fax: +49 21 74/65-32 19

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