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April 2011

Customer Newsletter

Joyson and Preh forge a high-growth technology company in the automotive market

The majority buyout follows a joint venture in which Joyson and Preh entered the Chinese market in August 2010. The move is designed to re-enforce both companies' market potential in Europe, North America and Asia. At the same time, Preh's equity ratio is substantially strengthened by a significant capital increase, rising to more than 40 percent, enabeling the company to make use of attractive growth potential in every market concerned. Confidentiality has been agreed upon by all parties involved as to the detailed arrangements of the transaction. The execution of the contract is subject to approval by all relevant authorities.

The DBAG-Group acquired Preh in October 2003, together with Preh management in a management buyout. With its commitment, the DBAG-Group supported a sustainable growth and globalization strategy for Preh: in 2003, Preh's automotive sales were 169 million. By 2010, they doubled

Entrepreneur and Chairman of Joyson Jeff Wang and Preh CEO Dr. Michael Roesnick.

to more than 343 million, despite the industry crisis.

Joyson acquires majority, Preh Management and Deutsche Beteiligungs AG substantially remain partners ­ continuity for customers and employees

Joyson Investment Holding Co., Ltd, Ningbo (China), will become majority partner of Preh GmbH, Bad Neustadt a.d. Saale. Joyson, a privately owned automotive electronics supplier, will have a stake of 74.9 percent. The current majority partner, Deutsche Beteiligungs AG, Frankfurt am Main ­ including funds administered by them DBAG-Group and management ­ retain a minority share of 25.1 percent. The new, dynamically growing technology company, with more than 500 million in sales, will become an automotive specialist with excellent market access to Europe, North America and China. Continuity for customers and employees is assured as Preh management will continue to control and further expand from Bad Neustadt the global activities of Joyson and Preh in the automotive electronics market.

In this issue

Joyson and Preh forge highgrowth technology company in the automotive market Two fast-growing partners join forces

Ideal fit

April 2011

Two fast-growing partners join forces: continuity and dynamic development

The Joyson headquarters in Ningbo, China

The future composition of Preh's supervisory board will demonstrate continuity with regard to the philosophy of the company. Dr. Rolf Scheffels, board member of the Deutsche Beteiligungs AG, will remain chairman. "During our more than seven years' commitment to Preh, we had several options to sell Preh successfully. However, as we always pursue a sustainable development of our holdings, together we decided in favor of a new partner who offered the best possibilities in terms of a continuing growth strategy," Dr. Scheffels said.

"In the transition period, we will continue to play a constructive role even in the new set-up as partner," he continued. In this context, Mr. Scheffels recalls developments as propelled under the auspices of the DBAG-Group and which had been implemented by management. This way Preh has turned into an exclusive automotive supplier which has fundamentally improved its competitiveness through investments in new locations in North America and East Europe as well as in new product groups.

panies Joyson Automotive Ningbo, Changchun Joyson, Bosen Corporation Ningbo and Huade Plastics Shanghai. It achieved total sales of 125 million in 2010. employees achieved total sales of 198 million. Joyson Automotive comprises the operating comJoyson Automotive is part of Joyson Group, Ningbo (China) which, besides its automotive unit, also has a real estate division, and in 2010 with 1,800

Ideal fit of capabilities and market access

Mr. Jeff Wang, entrepreneur and chairman of Joyson, said on the occasion of the transaction, "With our joint venture, we have gotten to know and to respect Preh, and because of Preh's high-class capabilities, we decided in favor of a majority buyout. Joyson and Preh are an ideal fit because of their roots in different market regions. We will offer globally to our joint customers premium class quality ­ cost-efficient driver controls and sensor systems for the car interior." Preh remains Preh ­ but with new market opportunities in China Dr. Michael Roesnick, CEO of Preh GmbH stated, "China has more and more developed into the decisive engine for the global car industry. Therefore, the joint venture with Joyson was a logical next step in our global strategy, "Together with the majority partner Joyson, Preh will substantially improve its market position and open new market opportunities, particularly in China," Roesnick continued. "At the same time, it is still true, as we already said when the commitment began with the Deutsche Beteiligungs AG: Preh remains Preh! Our company is driven by its unique sense of innovation as well as the outstanding commitment by our employees. Together with Joyson we want to ensure a maximum of continuity, as well as independence, in order to achieve long-term company success." starting with our facilities in Portugal, Mexico and Romania, finally leading us to China. Joyson's cooperation in the joint venture has led them to make a commitment to Preh, representing a great opportunity for us.

The Deutsche Beteiligungs AG (DBAG) is one of the leading German private-equity companies. It invests in successful companies which play a dominant role with its products and services in their respective markets. DBAG has been stock-listed since 1985 and funds its investments from its own and parallel sources. It manages assets with a value of about 900 million.

Contact

Preh, Inc. 28850 Cabot Drive, Suite 1300 Novi, MI 48377 Phone (248) 381-3800 Fax (248) 381-3840 www.preh.com [email protected]

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