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Daily press, 2003-10-02, 11:55 AM

ThyssenKrupp Dongyang Elevator starts operations

Joint venture agreement finalized

On October 1, 2003, the joint venture between the German ThyssenKrupp Elevator AG, Düsseldorf, and the Korean DongYang Group, Oryudong (Seoul), was finalized.

Under the name ThyssenKrupp Dongyang Elevator Co., Ltd. the new company will be managed by a Board of Directors made up of eight members, Helmut Müller, CEO, who will continue as the Chief Executive for ThyssenKrupp Elevator’s Asian operations, Byung-Ho Keum, Chief Operating Officer, Jin Won, Chief Planning Officer, as well as the Chief Financial and Chief Technical Officer. Non-standing board members are: Jong Mok Won, chairman of the board, Gary Elliott, who is also CEO of ThyssenKrupp Elevator AG, and Dr. Joachim F. Panek, who is at the same time CFO of ThyssenKrupp Elevator AG. ThyssenKrupp Elevator AG holds 75% of the joint venture’s shares. The remaining shares will be held by the Won family.

The guiding principle for the joint venture is to create a platform to further develop customer benefits through the unification of ThyssenKrupp Elevator’s global network and reputation for quality and innovative technology with DongYang´s competent production capabilities and strong presence in the Korean market.

With about 1,000 employees at three production facilities the DongYang Group generated sales of 193 million euros in the fiscal year ending December 31, 2002. With a market share of approximately 25%, DongYang is the second largest elevator company in Korea. In particular, it is one of the leaders in the high-performance domestic elevator market with approximately 40% market share. Therefore DongYang is the ideal partner for ThyssenKrupp Elevator in Korea. With over thirty five years experience and a strong workforce DongYang elevator is well established in the Korean market.

ThyssenKrupp Dongyang Elevator will continue to focus on the production, modernization and maintenance of standard and non-standard elevators, escalators and moving walks. The new joint venture as well as the Korean high rise and high value market will profit from ThyssenKrupp Elevator’s valuable know-how. Prominent reference projects of the ThyssenKrupp Elevator Group include Europe’s fastest elevator (8.5 m/s at DaimlerChrysler premises in Berlin), Europe’s tallest office building (over 300 m height at Commerzbank headquarters in Frankfurt), one of the world’s tallest television towers (Ostankino television tower in Moscow) and the 100 m Prague Metro escalator.

TWIN, the most recent innovation of ThyssenKrupp Elevator, will be actively marketed in Korea. It is a sophisticated elevator system with two cars – one arranged upon the other - in one single shaft. The two cars are not connected with each other and can drive independently to different levels using the same track. Its main advantages are higher lift capacity and less construction volume. Taking for example a group of four conventional elevators – that is one elevator per shaft – 40% more passengers can quickly move from one level to the other while also adding 25% more available space.

ThyssenKrupp Elevator is one of the core business segments of the German ThyssenKrupp AG, one of the major international industrial Groups. With about 193,000 employees worldwide ThyssenKrupp activities focus on carbon and stainless steel, capital goods (elevators, automotive components) and industrial services. ThyssenKrupp is the world‘s largest producer of stainless steel and Europe’s second largest flat carbon steel manufacturer.

ThyssenKrupp Elevator is the third largest elevator company in the world with activities in over 60 countries at more than 800 locations. With 30,000 employees it achieved sales of approx.

3.5 billion Euros in the fiscal year ending September 30, 2002. Products include passenger and freight elevators, escalators and moving walks, stair and platform lifts as well as passenger boarding bridges plus top quality service for the entire range.

Already since the merger between Thyssen and Krupp in 1999, companies with sales of 2.6 billion Euros have been divested and businesses with sales of 4 billion Euros have been acquired. Further divestitures with sales of around 7 billion Euros are planned. Through organic growth and selective strategic acquisitions, ThyssenKrupp aims to achieve total sales of 40 to 46 billion Euros in the medium term.