Company News

GKN Rockford, Inc.

News Release                                                                                 For More Information contact:

August 3, 2006                                                                                                      GKN Rockford, Inc.

                                                                                                                            John M. Locarno

                                                                                                                            V. P. Sales & Engineering

                                                                                                                            (815) 633-7460 Ext. 500

US Acquisition Transforms GKN into Global OffHighway Driveshaft Leader

GKN plc of the UK today announces the acquisition of Rockford Powertrain of the US, a producer of high horsepower driveshafts focused on the construction and mining equipment sector.

Rockford’s driveshafts are complementary to GKN’s current driveshaft products, which are aimed primarily at the agricultural equipment sector.

The newly combined product portfolio will satisfy the increasing demand by major original equipment manufacturers to consolidate the sourcing of their offhighway driveline systems purchases from a single lead supplier.

Based in Illinois, Rockford employs 200 people in the US and has outsourced an increasing proportion of its manufacturing to low labour cost countries, principally China and India, while retaining a strong US engineering and technical presence.

GKN is acquiring 100% of the outstanding stock for $50 million which is being met from existing resources. Rockford has current annual revenues of $60 million.

Martyn Vaughan, Chief Executive of GKN OffHighway, said: “This acquisition fits closely with our strategic criteria for OffHighway. It improves our penetration of both the US and construction sectors – 95% of Rockford’s sales are in the US with more than 85% going to construction and mining equipment manufacturers. Rockford also enjoys a low cost manufacturing base and its products are acknowledged as technology world leaders.”

The construction industry has enjoyed buoyant growth for the past three years and these conditions are expected to continue.

Rockford’s driveshafts, which connect the engine and drive axles to a vehicle’s transmission, can handle power outputs from 150 to 3500 horsepower.

For additional information regarding the acquisition of Rockford Powertrain by GKN plc, please visit GKN’s website at www.gknplc.com

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