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Continental Sees Increased Electronic Stability Control Installation Rates for Model Year 2005 Vehicles; Adopts ESC as Standard Name

--More than 40 North American vehicles will now have Continental ESC technology--

AUBURN HILLS, Mich., Oct. 26 -- Continental Teves, a unit of Continental AG, is launching production for several new electronic stability control (ESC) programs in North America on model year 2005 vehicles. More than 40 model year 2005 vehicles in North America will now be available with Continental's ESC, an increase of ten models over last year. ESC growth is part of a broader overall trend of an increase in the use of electronic brake systems in the North American automotive market -- more than 75% of all vehicles will now have an electronic brake system, which includes anti-lock brakes and traction control. ESC works as a component of the EBS system to help reduce the risk of serious crashes, including rollovers.

At a meeting today of the Automotive Press Association, Joe Gaus, Continental vice president, also announced the organization has changed its marketing efforts for ESC technology, which it previously marketed as Electronic Stability Program, or ESP. It will move forward to coincide with a Society of Automotive Engineers recommendation made in July for the industry to join together to alleviate confusion in the marketplace about the technology, and to standardize the use of "ESC" as common language. Continental will position the technology as ESC.

Continental, a leading global manufacturer of electronic stability control technology, projects that it will supply more than 1.2 million ESC units to automakers in North America in calendar year 2005, an increase of more than 70 percent over expected deliveries for calendar year 2004.

"This is excellent news for everyone interested in keeping America's roads safer," said Gaus, observing the increase in ESC applications in North America. "NHTSA recently reported a 67% decrease in single vehicle crashes in SUVs equipped with ESC, and in passenger cars, a reduction of 35%. These results are concurrent with earlier studies by the University of Iowa, and in Europe and Japan that have shown ESC is proven to reduce single-vehicle crashes significantly. We've been working with our customers to help educate them about the technology, and also with consumers, about the benefits of ESC, so they know to ask for it on their next vehicle."

Continental has begun or will soon begin production of ESC systems on ten new model year 2005 vehicles in North America (marked by an asterisk in the list below), and will continue to provide ESC to a number of automakers as carry-over programs from model year 2004 vehicles.

  Continental applications include:

  - Audi Roadster TT (marketed as Electronic Stability Program)
  - BMW 3-Series (Dynamic Stability Control)
  - *BMW M3 (Dynamic Stability Control) ... new program
  - BMW Z4 (Dynamic Stability Control)
  - Chrysler 300 (Electronic Stability Program)
  - Chrysler Crossfire (Electronic Stability Program)
  - Dodge Magnum (Electronic Stability Program)
  - Ford Expedition (AdvanceTrac with Roll Stability Control)
  - Ford Explorer (AdvanceTrac with Roll Stability Control)
  - *Honda Odyssey (Electronic Stability Control) ... new program
  - Infiniti FX 35 (Vehicle Dynamic Control)
  - Infiniti FX 45 (Vehicle Dynamic Control)
  - Jaguar S-Type (Dynamic Stability Control)
  - Jaguar XJ Series (Dynamic Stability Control)
  - Jaguar XK Series
  - *Jaguar X-Type (Dynamic Stability Control) ... new program
  - *Jeep Grand Cherokee (Electronic Stability Program) ... new program
  - *Lincoln Aviator (AdvanceTrac with Roll Stability Control) ... new
    program
  - Lincoln LS (AdvanceTrac)
  - *Lincoln Navigator (AdvanceTrac with Roll Stability Control) ... new
    program
  - Mercedes M-Class (Electronic Stability Program)
  - Mercedes C-Class (Electronic Stability Program)
  - Mercedes Coupe CLK (Electronic Stability Program)
  - Mercedes Roadster SLK (Electronic Stability Program)
  - Mercury Mountaineer (AdvanceTrac with Roll Stability Control)
  - MINI Cooper (Dynamic Stability Control)
  - Nissan Frontier (Vehicle Dynamic Control)
  - Nissan Murano (Vehicle Dynamic Control)
  - Nissan Armada (Vehicle Dynamic Control)
  - *Nissan Maxima (Vehicle Dynamic Control) ... new program
  - *Nissan Pathfinder (Vehicle Dynamic Control) ... new program
  - Nissan Titan (Vehicle Dynamic Control)
  - *Nissan Quest (Vehicle Dynamic Control) ... new program
  - Nissan Xterra (Vehicle Dynamic Control)
  - Porsche Cayenne (Porsche Stability Management)
  - Toyota Sequoia (Vehicle Stability Control)
  - Volkswagen New Beetle (Electronic Stabilization Program)
  - Volkswagen Touareg (Electronic Stabilization Program)
  - Volvo S70/V70/C70 (Dynamic Stability and Traction Control)
  - Volvo S80 (Dynamic Stability and Traction Control)
  - Volvo S40/V40 (Dynamic Stability and Traction Control)
  - Volvo S60 (Dynamic Stability and Traction Control)
  - *Volvo V50 (Dynamic Stability and Traction Control) ... new program
  - Volvo XC90 (Dynamic Stability and Traction Control)

Electronic stability control significantly improves vehicle stability in all three primary areas of vehicle performance: accelerating, cornering and braking. Using electrical sensors strategically placed throughout the vehicle, the system analyzes steering wheel activity, wheel speeds, acceleration and the vehicle's rotation about its vertical axis and continually analyzes this data to determine whether the actual course of the vehicle corresponds to the desired direction. By braking individual wheels and reducing engine torque, it automatically corrects understeer and oversteer, and helps keep vehicles on the road.

Continental Automotive Systems, headquartered in Frankfurt/Main Germany, is a unit of Continental AG, Hanover, Germany. With 2003 sales of approximately $13 billion (US), the Continental Corporation is a major supplier of brake systems, chassis components, vehicle electronics, tires and technical rubber products. Continental Automotive Systems' North American operation is headquartered in Auburn Hills, Mich. For additional information, contitevesna.