Friday, February 15, 2008 8:45 AM

Haldex expands in Mexico

Driven by growing demand, Haldex increases its manufacturing footprint in Mexico through completion of a new state-of-the-art facility dedicated to production of the latest generation of Limited Slip Couplings and Differentials

Located in the emerging Castro del Rio Industrial Park in Irapuato, State of Guanajuato, near several facilities operated by automakers and suppliers, the 2,500 square meter plant comprises manufacturing, warehousing, logistical functions and administrative space for 70 employees with room for future expansion.

Realized and operated by the Traction Systems Division, the entity offers an installed annual capacity of 250 000 for production of the 4th generation, electronically controlled Limited Slip Couplings and Differentials (eLSD), and will serve a number of All-Wheel Drive platforms at General Motors.

First vehicle model to feature the systems produced in Irapuato is the recently introduced SAAB 9-3 XWD, the first ever All Wheel Drive offering from the automaker. The awarded platforms are global in scope with several General Motors brands and assembly plants worldwide due to receive torque transfer technology manufactured by Haldex Irapuato.

The facility, Traction Systems’ first in North America, has recently obtained customer approval for serial production and will ramp-up its output all through 2008 as additional All-Wheel Drive models are launched by the General Motors brands. It also constitutes one of the pillars for Traction’s continued strong expansion and growth in the Americas with General Motors and other automakers.

Official inauguration is taking place today, February 15, 2008.

“The creation of this world-class facility in Irapuato, Mexico underlines the company’s unabridged commitment to excellence not only in the area of innovation but even in realization of modern and efficient manufacturing facilities on a global basis” says Joakim Olsson, President and CEO of the Haldex Group. “The strategic ambition is to offer our extensive global customer base a local presence and manufacturing capabilities for the product areas served by the Haldex Group”

Haldex Traction Systems is a leading producer of All-Wheel Drive systems for the global light vehicle market. Customers include VW, Audi, Bugatti, Seat, Skoda, Volvo, Ford Europe, Land-Rover and General Motors.

For additional information, please contact Joakim Olsson, President and Group CEO, phone. +46 8 545 049 52 or +46 70 545 86 54 or Stefan Johansson, CFO, phone. +46 8 545 049 52 or +46 70 224 24 01.

Haldex (www.haldex.com), headquartered in Stockholm, Sweden, is a provider of proprietary and innovative solutions to the global vehicle industry, with focus on products in vehicles that enhance safety, environment and vehicle dynamics. Haldex is listed on the Stockholm Stock Exchange and has annual sales of nearly 8 billion SEK with 6,000 employees.

Haldex discloses the information in this press release according to the Swedish Securities Market Act and/or the Swedish Financial Trading Act. The information was provided for public release on Friday, 15 February 2008.