3rd February 2009 - TMD Friction Group Announces Closure of its Plant in Dublin, Virginia, USA

• Decisive factor is the severe decline in sales in the automotive industry

• TMD Friction Group has communicated closure plans to the Dublin, Virginia employees on January 26, 2009

• An orderly wind down process of TMD Friction Inc.’s Dublin operations is planned to support customers, suppliers and employees through the transition

Due to the massive decline in sales in the automotive industry worldwide and as part of the current preliminary insolvency process in Germany, the TMD Friction Group will implement necessary restructuring measures in order to maintain a viable position in the global market.

As a part of these measures, TMD Friction Group will close TMD Friction Inc.’s, Dublin, Virginia, USA, manufacturing operations. The closure process includes an orderly wind down of ongoing operations with customers and suppliers by May 31, 2009. TMD Friction Group plans sale of the facility and property after that date. TMD Friction Group has informed the Dublin, Virginia employees (approx. 140) on January 26, 2009 and will follow required filing processes with local employment agencies.

In December 2008 TMD Friction Group filed for insolvency at the local county court in Cologne, Germany, for their German operating and Holding companies. The court appointed barrister Dr. Frank Kebekus as preliminary insolvency administrator. The primary reason for filing is the decline in sales of the global automotive markets that TMD Friction Group services. Business operations – with the exception of Christmas holidays – continue unchanged since insolvency has been filed in Germany.

About TMD Friction

TMD Friction Group is the world's leading manufacturer of brake friction materials in the original equipment market of the automotive and brake industry. Its product portfolio comprises disc brake pads and drum brake linings for passenger cars and commercial vehicles together with brake pads for racing and friction materials for industry. TMD Friction also supplies the global aftermarket with its Textar, Pagid, Mintex, Don, Cobreq, and Cosid brands. With locations in Germany and six other European countries, the USA, Brazil, Mexico, China, Japan and Malaysia, TMD Friction generated a turnover of 690 million Euros in 2007 and employed 4,500 people worldwide.

Source: TMD Friction Press Release