(August 8, 2004, Wuxi) Today, Robert Bosch GmbH, one of the world’s largest automotive technologies suppliers, announced the establishment of Bosch Automotive Diesel Systems Co., Ltd., the most recent addition to the company’s diesel systems manufacturing and R&D base to support China’s rapidly growing automotive industry and to satisfy the world’s increasing demand for more economical automobiles with higher fuel efficiency and lower emissions.

The official opening ceremony and the groundbreaking in the Wuxi National High-tech Industries Development Zone was attended by Mr. Wang Weimin, from the State-owned Assets Supervision and Administration Commission of the State Council, Mr. Jiang Dingzhi, Deputy Governor, Jiangsu Province, Mr. Mao Xiaoping, Mayor of Wuxi, and distinguished guests，as well as Mr. Bernd Bohr, Member of the Board of Management and Chairman of the Automotive Group, Robert Bosch GmbH and Mr. Ludwig Walz (Executive Vice President of Bosch Diesel Systems).

As a 67%-33% Foreign Invested Joint-Stock Company between the Bosch Group and Wuxi Weifu Group with a registered capital of US$200 million, Bosch Automotive Diesel Systems Co. Ltd. is an expansion of the existing partnership between the two Groups and is one of the largest new investments of Bosch Diesel Systems outside Germany. According to plan, the total size of the property is 300,000 square meters, and it is expected to start commercial production at the end of 2005 with some 2,000 employees. The existing joint venture, Wuxi Europe-Asia Diesel Fuel Injection Co. Ltd., which was founded in 1995, will be integrated into the new company.

"Reinforcing and expanding our manufacturing and R&D capability of the most advanced diesel systems in China is a key part of our global strategy and is a further demonstration of our commitment to this fast-growing market," said Mr. Bohr.

“The auto industry in China has been growing at double-digit rates in recent years. To support the further advancement of China’s automotive industry and to respond to the country’s energy and environmental requirements, Bosch, as the leading innovator in diesel systems and technologies, is up to the challenge of introducing state-of-the-art products and manufacturing them locally.” Mr. Bohr added. “Soon we will be able to help our local customers to manage the transition from mechanical to electronic diesel fuel injection systems with products manufactured here in Wuxi.”

Bosch Automotive Diesel Systems Co. Ltd. will produce high-pressure diesel injection systems, mainly the Common Rail System (CRS), which is renowned throughout the industry for making diesel engines more economical, more dynamic, cleaner and quieter.

“More importantly, with our advanced diesel technologies, Bosch will support China’s auto industry in meeting Euro 3 and, later on, Euro 4 emissions standards as they come into effect in China.” Mr. Bohr emphasized. “Further down the road are plans for the introduction of future Bosch diesel technologies which will enable our customers to meet even stricter environmental requirements in the future.”

In addition to the Bosch Automotive Diesel Systems Co. Ltd. manufacturing facilities, Bosch has decided to invest a further 50 million EUR to build a world-class technical centre in 2005 to assure the fastest possible response time to the requests of our Chinese customers, enhance our R&D capabilities and to fulfill customer needs by using the latest diesel technologies and products.

“It will play an important part of Bosch diesel systems division in terms of research and technical services, and will also help to position China at the forefront of diesel technology worldwide,” said Mr. Bohr.

Bosch diesel systems division has over 49,000 employees worldwide. With a forecasted production of seven million Common Rail and Unit Injector high-pressure injection systems in 2004, Bosch continues to be the world抯 biggest and most technologically advanced manufacturer of diesel systems.

Headquartered in Stuttgart, Germany, Robert Bosch GmbH has subsidiaries and affiliates in more than 50 countries around the world, with total sales of 36.4 billion EUR in 2003. Employing approximately 232,000 people worldwide, of whom about 10,300 are in China, the company is involved in automotive technology, industrial technology, consumer goods and building technology. The eight product divisions of the Automotive Group include Gasoline Systems, Diesel Systems, Chassis Systems, Energy and Body Systems, Car Multimedia, Automotive Electronics, ZF Steering Systems and Automotive Aftermarket.

Since it re-entered the China market in 1980’s, Bosch has set up 10 representative offices, 5 trading companies and 1 trading representative office, 9 wholly-owned enterprises and 9 joint ventures in the country, coordinated by the investment company - Bosch (China) Investment Ltd. The group’s total investment in China has reached more than 600 million US$. The key automotive companies in China are Bosch Trading (Shanghai) Co. Ltd., Bosch Automotive Products (Suzhou) Co. Ltd., Bosch Automotive Diesel Systems Co., Ltd., Nanjing Huade Spark Plug Co. Ltd., and United Automotive Electronic Systems Co. Ltd.