Tognum with own representation in Spain

• Spanish distributor Casli’s mtu branch to become mtu Ibérica
• Huge growth potential on the Iberian peninsula

Friedrichshafen, 22 January 2009. The specialist for propulsion and power solutions Tognum further extends its mtu and mtu Onsite Energy brands’ presence on the Iberian peninsula with a separate sales and service subsidiary. At the start of 2009, Tognum acquired the part of the Spanish company Casli S.A. in Madrid, that was previously successfully acting as distributor for mtu and Detroit Diesel products in Spain. This distributor business will now be merged with the newly founded Tognum subsidiary mtu Ibérica Propulsión y Energía S.L. Both partners have agreed not to disclose the details of the contractual terms and conditions. With this acquisition, which represents an initial step towards an overall Iberian growth concept, Tognum group are taking further consistent action towards meeting their objective to service particularly important and promising markets and thereby provide sustain to their profitable growth trends. In addition, there are efforts to strengthen Tognum’s access to the Portuguese market.

With the acquisition of the Casli distributor business, Tognum gains access to OEM customers, final customers, as well as operators, particularly in the Marine, Onsite Energy and Industrial Applications business, and will open up new market segments, like the gas co-generation power plant business.

Casli owner Carlos Ortega and Tognum top management are confident, the expertise and the competence of the reliable Casli staff will provide a solid basis for the expansion of operations in Spain with mtu and mtu-Onsite-Energy products. All of the 37 staff members previously working for Casli’s mtu branch are now changing over to mtu Ibérica S.L., which will move into office, storage and workshop facilities in the new Casli building in Coslada near Madrid. The number of employees is scheduled to be increased in the near future in order to facilitate a rapid implementation of the expansion strategy for the Spanish market. Medium-term plans envisage doubling the current turnover volume of well above € 30 million, which provides powerful evidence of the huge importance of the Spanish market for Tognum. In order to realize these ambitious growth targets, the cooperation with the previous mtu service partners, which operate a close-meshed service network all over Spain will be continued and expanded.

“Our former distributor Casli contributed significantly in building up the mtu brand’s strong position in Spain - we are looking back at many years of good partnership and successful cooperation“, explained Tognum board member Rainer Breidenbach. The market on the Iberian peninsula has a lot more potential in store for the Tognum group. Thus, Tognum group has identified additional opportunities for growth in the engines and complete drive and propulsion systems business for workboats, governmental vessels, railways, but also heavy-duty land vehicles and yachts.

Within this expansion strategy for the Iberian peninsula, particular significance is attached to the Tognum business unit Onsite Energy & Components featuring the new brand mtu Onsite Energy. “There is a huge growth potential for the activities which were bundled under this new brand in September 2008 - potential in the field of onsite power generation, from diesel gensets to gas co-generation power plants all the way to fuel cell systems“, says Christof von Branconi, the Tognum board member heading this business unit. Tognum is also planning to enhance customer service and thereby significantly expand the profitable After Sales business for mtu und mtu Onsite Energy products, as well as Mercedes-Benz industrial engines.

With mtu Ibérica, the Tognum Group further expands its network of sales and service companies in Europe. Tognum, specializing in engines, drive and propulsion systems and onsite power generation systems, owns further sales subsidiaries in the United Kingdom, France, Italy, the Netherlands and in Turkey.

As an independent partner of mtu Ibérica, Casli will continue to operate in the fields of sales and service for 2-stroke engines and maintain operations outside the off-highway sphere.