Key Principal Partners Leads $100M Investment in ASIMCO China's Largest Independent Manufacturer of Automotive Components

CLEVELAND--March 4, 2004--Key Principal Partners (KPP), a private investment firm based in Cleveland, Ohio, recently led a $100 million equity investment to recapitalize Beijing-based ASIMCO, the largest independent manufacturer of automotive and heavy-duty truck components in China.

The recapitalization completes ASIMCO's ten-year transition from an investment firm to an operating company. Specifically, the transaction will convert ASIMCO's organizational structure from a partnership format to a corporation. Along with existing cash resources and internally generated funds, the equity investment will be used to provide liquidity to existing investors and expand the company's global business.

"KPP has a strong background in helping U.S.-based middle-market companies become globally competitive," said Leland Lewis, a partner at KPP. "Our investment in ASIMCO further demonstrates our ability to provide capital and expertise to better position companies to excel in the global manufacturing marketplace."

The recapitalization coincides with ASIMCO's ten-year anniversary and a corporate name change to ASIMCO Technologies Limited. The name change underscores the importance of technological leadership to ASIMCO's continuing evolution as an industry leader.

As the lead investor, KPP will work proactively with ASIMCO management to grow the company organically and through the acquisition of automotive component suppliers offering technological advances or products applicable to the domestic Chinese market.

"ASIMCO is creating a new paradigm in the industry, one which combines the best of what China and the developed markets have to offer," said Jack Perkowski, founder and CEO of ASIMCO. "We were among the first to see China's tremendous potential, and have used these past ten years to establish our presence and develop our management resources and systems here. We are now uniquely positioned to benefit both from China's emergence as one of the largest automotive markets in the world and from accelerating global outsourcing trends."

From its founding in 1994, ASIMCO has grown to become the largest independent manufacturer of automotive components in China. Today, nearly half of ASIMCO's revenue of approximately $350 million is generated from global customers, and the company's products are sold to automotive leaders in China, the United States, Europe and Japan.

KPP and ASIMCO began their business relationship in 2002, when ASIMCO approached KPP about a partnership to acquire Federal Mogul Corporation's camshaft manufacturing business, based in Grand Haven, Mich. The $28M acquisition was completed in April 2003, creating ASIMCO Camshaft Specialties (ACS), Inc. ACS will now be integrated into ASIMCO Technologies.

"Based on the relationship we have with the principals of KPP, we were confident that their involvement as a large shareholder, coupled with their depth of experience, would enhance ASIMCO's ability to achieve growth targets and expand global activities," added Perkowski.

About ASIMCO Technologies Limited.

ASIMCO Technologies Limited. is a large-scale, multi-product components manufacturing organization based in Beijing, China, with global reach and managed by an international management team in partnership with experienced local managers. ASIMCO operates 18 manufacturing facilities and a network of 36 sales offices in China, and 2 manufacturing facilities as well as a sales and distribution company in the United States. Since its formation in 1994, ASIMCO has substantially expanded its activities in supplying both the Chinese and international automotive markets.

ASIMCO's strategy has been to provide capital, management and technology as part of a comprehensive program to enable its China based companies to compete in the global marketplace. ASIMCO has also established extensive strategic and technological relationships with leading international companies from the United States, Europe and Japan.

ASIMCO companies currently produce a broad range of powertrain and chassis components. Powertrain products include piston rings, camshafts, and cylinder blocks and heads, while chassis products include most major components for the brake system. In addition, ASIMCO supplies diesel fuel injection systems and compressors to the heavy-duty market. ASIMCO operates its own aluminum and ductile iron casting operations and has extensive machining and assembly capabilities.

About KPP

Key Principal Partners (KPP) is a nationally recognized private investment firm providing capital to middle market companies throughout North America. KPP utilizes equity and mezzanine capital to fund the growth, buyout, refinancing or acquisition of profitable companies. Transactions can include both controlling and non-controlling investments in mostly privately held companies, resulting in long term partnerships with management and owners, or liquidity events for existing shareholders. KPP has approximately $1 billion in capital under management and typically leads investments of $10-$50 million in companies with at least $20 million in revenue. Headquartered in Cleveland, KPP is affiliated with KeyCorp, an $84 billion financial services firm and has offices in Boston, Greenwich, San Francisco and St. Louis.