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ArvinMeritor and ZF Promise Vigorous Defense Against Eaton’s Legal Actions

TROY, Mich., (Dec. 15, 2003) ArvinMeritor Inc., ZF Friedrichshafen AG and ZF Meritor LLC today announced that they are committed to a vigorous defense against the legal actions launched recently by Eaton Corporation against the three companies in connection with the ZF Meritor FreedomLine automated manual heavy truck transmission.
 
“Eaton has a very significant share of the North American heavy truck transmissions market and their actions are the latest in a series of disruptive actions that appear to be designed to block truck operators’ access to the field-proven innovative FreedomLine,” said Tom Gosnell, President of Commercial Vehicle Systems, ArvinMeritor.
 
“ZF Friedrichshafen AG stands by its technology and we are confident that we will prevail against Eaton in their latest attempt to eliminate a viable competitor from the North American heavy truck transmission market,” stated Wolfgang Vogel, Executive Vice President, Commercial Vehicle and Special Driveline Technology, ZF Friedrichshafen AG.
 
The FreedomLine™ transmission is the most advanced, automated manual transmission in North America, featuring the first “no clutch pedal” design making it easier to learn and operate than competing “three-pedal” automated systems.  FreedomLine™ provides significant fuel economy and driver comfort benefits, and its innovative design is protected by numerous patents worldwide.
 
This is the latest in a series of patent-related legal actions that Eaton has thus far unsuccessfully taken against ArvinMeritor and related companies in its drive to secure total dominance of the North American heavy transmission market:
  • In 1997, Eaton sued Rockwell International, ArvinMeritor’s predecessor, for patent infringement by the ground-breaking Engine Synchro Shift (ESS) transmission that was offered prior to the FreedomLine™.  ArvinMeritor decisively won that case, the Court of Appeals for the Federal Circuit in Washington ruling in favor of ArvinMeritor by a 3-0 vote.
  • Subsequently Eaton filed an “interference” in the Patent and Trademark Office – an action designed to wrest ownership of other patents from ZF Meritor, which indicates that Eaton is “very concerned about the threat of these patents to their automated transmission products”, according to ZF Meritor President Rick Martello.
  • Now Eaton has filed complaints with the U.S. International Trade Commission and the United States District Court in Detroit, Mich., alleging infringement of several Eaton patents by the FreedomLine™ transmission.  Initial review of the patents asserted by Eaton indicates that it has filed yet another misdirected lawsuit destined to fail.
In a message to heavy truck buyers, Gosnell said: “I want to make it clear how committed we are to this transmission and how certain we are that our position will prevail.  We’re here to stay in the transmission business as a technology leader for our customers.
 
“The public deserves choice, particularly when it is as superior as it is in FreedomLine™’s case,” Gosnell emphasized.  “With this in mind, ArvinMeritor and ZF intend to restructure our relationship.”
 
ZF Friedrichshafen AG is a leading worldwide supplier of driveline and chassis technology.  Headquartered in Friedrichshafen, Germany, ZF is among the 15 largest automotive suppliers in the world.  The company has a total workforce of 53,300 at 119 loc-ations in 25 countries, and combined revenues for the group totaled more than $10 billion in 2002.
 
ArvinMeritor, Inc. is a premier $8-billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry.  The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets.  Headquartered in Troy, Mich., the company employs approximately 32,000 people at more than 150 manufacturing facilities in 27 countries.  ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM.  For more information, visit the company's Web site at: http://www.arvinmeritor.com/.
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CONTACTS:  Media Inquiries
D. Mike Pennington
1-248-435-1933
mailto:david.pennington@arvinmeritor.com
 
Krista McClure
1-248-435-7115
mailto:krista.mcclure@arvinmeritor.com
 
ZF Group North America
Frank Buscemi
Manager Public Affairs
1-734-207-2820
mailto:frank.buscemi@ZF.com
 
Investor Inquiries
Alice McGuire
1-248-655-2159
mailto:alice.mcguire@arvinmeritor.com