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Press Release

Continental information series: "Global Engineering Excellence" initiative

Innovations for safe mobility and driving pleasure

Continental's Automotive Systems division banking on intelligent vehicles

Hanover/Frankfurt, October 17, 2006. An automated system that keeps a vehicle in its proper lane of traffic at a safe distance from the vehicle ahead of it; communication from one vehicle to another and with the traffic infrastructure; an on-board computer that calculates the likelihood of an accident – all of these could be viewed as story boards for future dreams à la "Forward

Thinking“. In the Automotive Systems division at the international automotive supplier Continental

AG, however, around 4,900 developers are already hard at work worldwide to make these dreams come true. Innovations are what fuel the development here in the direction of greater safety and enhanced vehicle comfort. The employees in this division generate more ideas than anywhere else in the corporation. "With its technology pool extending from cutting-edge electronic brake and stability control systems, life-saving driver-assist systems and innovative telematic applications all the way through to earth-friendly hybrid drives, Continental's Automotive Systems division harnesses together a unique force for innovation in the development of complex systems solutions," notes Dr. Karl-Thomas Neumann, chairman of the management board of the Automotive Systems division at Continental and member of the Executive Board of Continental AG. "We generate an average of 1,000 patent applications each year."

The sundry ideas have to be filtered and evaluated systematically to ensure that highly promising projects are launched in good time. "The Automotive Systems division is organized into seven business units. However, product ideas not clearly falling within the purview of any one specific business unit are given special backing by innovation management. The ideas are consolidated, evaluated and tracked as they make their way through the innovation process. Although it is the evaluation of the technical and business opportunities of new ideas, the formulation of project schemes for their effective exploitation, and the monitoring of their implementation. What's more, strategic reconnaissance fields are defined and future trends pin-pointed and analyzed. As far as the existing product range is concerned, advanced development and optimization occur in the respective business units," explains Dr. Otmar Schreiner, corporate and Automotive Systems innovation manager at Continental AG.

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A corporate policy rigorously geared to identifying market needs and customer wishes and to developing products and solutions to meet these needs and wishes is dependent on having employees with knowledge that is both broadly based and capable of allowing for in-depth understanding of specific case studies. The employees must also come equipped with abundant creative potential and team competence. In Continental's Automotive Systems division, efforts are underway to develop "hidden competence" – by means of systems that enable a vehicle to respond early enough to prevent an accident from occurring or, where this is not possible, at least, to minimize the consequences of one. ESC (electronic stability control) has a key role to play in these assist systems in that it works to prevent erratic deviations in vehicle handling. By networking the system with other electronic chassis control systems – like electric steering, for example, or active body control – it is possible to improve not only brake performance and vehicle stability but also to optimize other criteria that occasionally are at odds with these, like riding comfort and driving pleasure. "To cite just one example: In addition to intervening in engine performance and braking in the usual manner, ESC II, one of our new developments, also actively takes a hand with steering and suspension control to further improve the driving stability of individual wheels, in particular under road conditions characterized by uneven grip," said Dr. Peter E.

Rieth, managing director of technology and future development for the Automotive Systems division. This twenty-two-year veteran in the area of automotive technology and traffic safety himself owns over 100 patents worldwide.

The driver should, nonetheless, always have the last say and the upper hand. "Assist systems should be designed in such a way that they serve the driver, who is able to accept them without having the feeling that the systems are 'taking over'. We are faced with the challenge of developing intelligent systems that are geared to the needs of the customer while simultaneously guaranteeing a high degree of availability," explains James Remfrey, head of technology placement at

Continental's Automotive Systems division. And the engineers in this division are clearly taking up the challenge. Other items on the agenda include: improved emergency braking and safety functions achieved, for instance, by hooking camera sensors up to radar or infrared sensors; a speed limit warning system based on traffic sign recognition; an automatic parking assist system; and the development of intelligent light and vision functions.

In the "era of the seeing car", an accident calculator determines the likelihood that a collision will occur in a given traffic situation; graduated steps are then taken to protect those in the vehicle and in the vicinity. Continental is currently collaborating with automakers to bring this project to production readiness.

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Continental is putting stock in the promise of an intelligent vehicle that harnesses together individual systems and technologies for a safer, more dynamic and more sustainably momentous automotive future. These attributes also apply to Continental's Automotive Systems division, whose order situation is excellent. At the Lindau facility alone, the local development department is in the process of hiring another 24 highly qualified engineers.

Breeding career entrants with a solid technical background is a key factor in success. According to VDI (Society of German Engineers), 15,000 engineering posts in Germany remain unfilled at the moment. There is a shortage, above all, of "inventive spirits", of inquisitive engineers with a knack for tinkering. "50 percent of all R&D vacancies announced at successful companies could not be filled in 2005," means Dr. Willi Fuchs, director of VDI. At the same time, with the economic globalization process picking up momentum, industrial companies doing business abroad are increasingly in need of versatile engineers. The universities, in turn, are up against the daunting task of turning out engineers with a much expanded spectrum of competencies in the future.

Continental AG is taking very seriously a situation in which generating innovations has become a must. It has launched the "Global Engineering Excellence" initiative, which involves a co-operation with eight renowned universities around the world.

At the heart of this initiative, the company is sponsoring a worldwide study of engineering science. Masterminded by the Technische Universität Darmstadt, the study looks into innovation trends, education and career tracks, and the significance of engineering for the national economies. The results of the first worldwide study of this kind are to be presented on November 9/10 in Frankfurt/Main, Germany. Alongside the presentation, recommendations will also be made for an internationally networked engineering curriculum addressed to universities, companies and governments.

The Continental Corporation is a leading automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2005 the corporation realized sales of €13.8 billion. It currently has a worldwide workforce of around 85,000 employees.

Hannes Boekhoff

Head of Press Relations

Continental AG

Vahrenwalder Straße 9

30165 Hanover/Germany

Ph. +49 (0)511 938-1278, Fax -1055

Email: prkonzern@conti.de

Dagmar Weiner

Head of Communications

Continental

Automotive Systems Division

Guerickestraße 7

60488 Frankfurt/Germany

Ph. +49 (0)69 7603-6000, Fax -3945

Email: dagmar.weiner@contiautomotive.com

Corporate Image and Video Library: www.conti-online.com

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