26th July 2010 - TMD Friction Group Acquires Eurofriction Ltd

TMD Friction Group, a leading global market player in the development and manufacture of automotive, rail and industrial friction products, today announced the acquisition of Eurofriction Ltd ("Eurofriction"), the automotive friction parts manufacturer, based in Kilmarnock, Scotland.

Eurofriction, a profitable full-range manufacturer of replacement brake pads for passenger cars to leading distributors within the European independent aftermarket, generated sales in excess of 12 million pound sterling in 2009 and employs 130 people at one location in Kilmarnock.

The acquisition of Eurofriction facilitates growth across and beyond TMD Friction's existing business activities and is a substantial step in enhancing its position in the independent aftermarket and further improves the service offering to its aftermarket customers across Europe.

The Kilmarnock facility, which will become an important addition to TMD Friction's existing manufacturing operations in Hartlepool, England and Caransebes, Romania, will provide the company with an improved capability to meet market demand and complement its customer base with additional replacement parts business.

The acquisition further strengthens TMD Friction's position as a European and worldwide leader in the development, manufacturing, sales and distribution of high quality brake pads to the independent automotive aftermarket.

Josef Besting, Senior Vice President of TMD Friction's global aftermarket division, comments: "This acquisition is a perfect fit. Eurofriction's business complements our own IAM activities and helps us grow our manufacturing footprint and customer base further. While customer demand for both branded and private-label products from TMD Friction increases, we see a growing need to build up additional manufacturing resources dedicated to our aftermarket organisation."

About TMD Friction

TMD Friction Group is among the world's leading manufacturers of brake friction materials for the automotive and brake industries. Its product portfolio comprises disc brake pads and drum brake linings for passenger cars and commercial vehicles together with brake pads for racing cars and friction materials for rail and industrial applications. TMD Friction is one of the largest suppliers to the global replacement parts aftermarket with its Textar, Pagid, Mintex, Don and Cobreq brands. Brake pads for rail and industrial applications are developed and produced under the brand name Cosid. TMD Friction has operations in the United Kingdom, in Germany and three other European countries, as well as in the US, Brazil, Mexico, China and Japan. The TMD Friction Group employs approximately 4,200 people worldwide, now adding another 130 staff from Eurofriction.