• Major expansion of automotive production facilities
• Bosch is localizing products to meet customer requirements
• Cutting-edge electronically-controlled injection systems contribute to China’s energy-saving mobility
• Changsha investment shows Bosch’s commitment to central China

Changsha and Suzhou, May 18 & 19, 2006 - Bosch, the world’s No. 1 automotive supplier, announced the expansion of its production capacity in the company’s Changsha and Suzhou plants. The total investment of 160 million Euro highlights Bosch’s enduring commitment to the China market and its growing presence as an integral part of China’s automotive industry. Bosch Automotive Products (Suzhou) and Bosch Automotive Products (Changsha) are both 100% subsidiaries of the Bosch Group with different product lines.

The Changsha site will become the main operation of Bosch Energy and Body Systems Division in China. The current plant covers an area of over 105, 000 square meters while the final stage of the plant will cover more than 212,000 square meters in total. 60 million Euros will be invested in the site and the number of employees will double from 500 to 1,000 by 2007. Bosch Automotive Electronics, one of the biggest divisions at the Suzhou site will grow from currently 160 to 1,000 employees by 2008 with the total investment reaching 100 million Euros for its new location over the next two years.

”The latest expansions are part of our plan to invest a further 620 million Euros in China between 2006 and 2008. This clearly confirms our commitment to China, to the development of its local industries and to the supporting of the goals set out in the Eleventh Five-Year Program,” said Dr. Rudolf Colm, Member of the Board of Management of the Bosch Group and responsible for the coordination of company activities in the Asia-Pacific region. ”Through continuous investment and localization we introduce the most advanced technologies and manufacturing know-how to China and hence support China’s need for global industrial competitiveness, environmental protection and resource-saving.”

Bosch’s expansion in Changsha will meet growing customer demand in China. The Changsha plant is now the centralized site that covers the entire sector of vehicle electrical systems, through the development, manufacture and distribution of starters, alternators, control units for body electronics and mechatronic drives as well as wiper systems. As one of the leading manufacturers for small motors, the Energy and Body Systems Division offers the entire range of rotating electrical devices.

“The Changsha plant is Bosch’s largest investment in central China by which we also support the Chinese government in stimulating growth in this region,” said Dr. Volkmar Denner, Member of the Board of Management of the Bosch Group and responsible for the global Automotive Electronics and Energy and Body Systems Divisions. “Here we will localize products that are of highly advanced automotive standards, especially regarding quality and reliability to meet our customer’s requirements.”

Bosch Automotive Electronics at the Suzhou site manufactures a wide range of Bosch automotive electronic components such as Airbag control units, ABS and ESP control units, Engine Management control units for Diesel engines and various types of body electronics. Airbag electronic control units (ECU) and ECUs for ABS and ESP system contribute to the high standards for safety. Moreover, the park pilot system enhances comfort, while the engine ECU reduces emissions and fuel consumption, a major contribution towards environmental protection and resource-saving.

The expansion of these production facilities also reflects Bosch’s commitment to talent localization. “Bosch pursues sustainable development in China through the localization of technology and talents,” said Peter Pang, the president of Bosch (China) Investment Ltd. “In order to build a strong local management, engineering and research teams in China, Bosch is training and developing Chinese students and professionals.” Bosch expects the number of its associates in China to increase from 14,000 to approximately 18,000 by 2007.

About Bosch in China

Bosch founded its first trading office in China as early as 1909. In 1926, the first car service workshop opened in Shanghai . Today, all of the Bosch business sectors are present in China : Automotive and Industrial Technology, Consumer Goods and Building Technology. The company operates via a holding company in Shanghai , 14 subsidiaries, six joint ventures, and six trading companies. The 2005 consolidated sales in China reached 1 billion EUR, which represents a 35% increase compared to the previous year. Non-consolidated entities included, Bosch China achieved sales of 1.2 billion EUR in 2005, a 15% increase from 2004. Up to 2005, Bosch had invested around 620 million euros in the establishment and expansion of its Chinese activities. In the past five years alone, the number of Bosch manufacturing facilities there has doubled, from 10 to 20.

In China over 14,000 Bosch employees follow Bosch’s “3S principle” – S icher (safe), S auber (clean), S parsam (economical) and are committed to bringing to the Chinese customers the latest technology as well as the most reliable services to help the Chinese people improve their quality of life. Innovation applied to environmental protection has been a corporate principle of the Bosch Group since 1973.

About Bosch Group

The Bosch Group is a leading global manufacturer of automotive and industrial technology, consumer goods, and building technology. In fiscal year 2005, some 251,000 associates generated sales of 41.5 billion euros. Set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as "Workshop for Precision Mechanics and Electrical Engineering," the Bosch Group today comprises a manufacturing, sales, and after-sales service network of more than 280 subsidiaries and more than 12,000 Bosch service centers in over 140 countries.

The special ownership structure of the Bosch Group guarantees its financial independence and entrepreneurial freedom. It makes it possible for the company to undertake significant up-front investments in the safeguarding of its future, as well as to do justice to its social responsibility in a manner reflective of the spirit and will of its founder. 92 % of the shares of Robert Bosch GmbH are held by the charitable foundation Robert Bosch Stiftung. The entrepreneurial ownership functions are carried out by Robert Bosch Industrietreuhand KG.

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