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To ArvinMeritor Shareholders Page 2

General Information Page 5

To ArvinMeritor Shareholders Page 2

General Information Page 5

To ArvinMeritor Shareholders Page 1 On July 7, 2000, we realized our goal to merge the strength, expertise and resources of two industry leaders into one company, thereby creating the new ArvinMeritor. Together, we will provide extraordinary value to our employees, our customers and our shareowners. With our strong leadership team, we’re meeting the future with the combined strengths of our best-in-class technologies, systems, practices and people. Larry Yost, chairman & CEO (right) Bill Hunt, vice chairman & president T O G E T H E R , W E ’ R E B I G G E R . Achieving $7.7 billion in pro forma sales in fiscal year 2000, ArvinMeritor’s broad product portfolio gives us the ability to supply systems, modules and components to almost every vehicle on the road today. Above all, together, we have the diversity, balance and range of capabilities to create a sustainable competitive advantage. T O G E T H E R , W E ’ R E S T R O N G E R . Combined, ArvinMeritor has the engineering and technological expertise and the program management capabilities to develop new systems and products, as well as the ability to move quickly when significant growth opportunities arise. We are committed to 10-percent top-line growth, as well as to increasing our earnings per share by 15 to 18 percent annually over the business cycle. We intend to achieve these goals primarily through margin expansion, driven by new higher-value products and aggressive cost-reduction initiatives. T O G E T H E R , W E ’ R E F A S T E R . ArvinMeritor has the resources to provide around-the-clock, cost- effective solutions and to deliver them to our customers faster, wherever they do business, around the world. Because the new ArvinMeritor is bigger, stronger and faster, we’re well on our way to becoming the supplier of choice for the global motor vehicle industry. F I N A N C I A L R E S U LT S F O R F I S C A L Y E A R 2 0 0 0 During the first six months, most of our businesses benefited from strong markets. However, for the remainder of the year, we faced many challenges that were spawned by conditions that affected the entire industry. Our pro forma net income in fiscal year 2000, excluding special items, was $254 million, nine percent lower than pro forma 1999, excluding special items. On a diluted basis, the related earnings per share were $3.56 compared to $3.66 per share a year ago. Our aggressive measures to drive down costs focus sharply on delivering improved financial performance and building a stronger global Tier One supplier position. To that end, we must anticipate T O A R V I N M E R I T O R S H A R E O W N E R S THE NEW ARVINMERITOR HAS THE FLEXIBILITY AND FINANCIAL STRENGTH TO SEIZE NEW OPPORTUNITIES AND EXPAND INTO GLOBAL MARKETS. F A S T E R