Key Safety Systems Opens New Asia Technology Center and Manufacturing Center in Shanghai

Shanghai, China, March 8, 2006 — Key Safety Systems, Inc. a leader in global automotive safety systems and components, today announced the grand opening of its Asia technology and manufacturing center in Shanghai, China. The center is part of Key Safety Systems ’ joint venture with Yanfeng Visteon Automotive Trim Systems Company, Ltd. Located Southeast of Shanghai in the Pudong region, the partnership is called Yanfeng Key Automotive Safety Systems Company, Ltd.

“Our investment of over $30 million in this technolog y and manufacturing center represents our continuing commitment to the Chinese market and the Asia-Pacific region as a whole,” said B. Edward Ewing, Chairman and Chief Executive Officer of Key Safety Systems, Inc. “We have the ability to design, develop, test and supply a wide range of active and passive safety system products throughout China and other parts of the Asia-Pacific region. I am very honored to partner with Yanfeng Visteon and have great expectations for the future of the combined companies.” Ewing continued, “This partnership continues Key Safety Systems ’ aggressive actions to implement a global footprint in manufacturing and engineering which ensure world-class cost competitiveness and customer support , and will serve as the strategic centerpiece of Key Safety Systems, Inc. We expect additional actions to expand our rapidly growing presence in Asian markets. This 240,000 ft2 manufacturing facility produces airbag modules, seat belt assemblies, and steering wheels and will employ over 1,000 people. The 140,000 ft2 technology center will employ over 500 engineering professionals. These facilities will grow Key Safety Systems’ revenue in China to over $250 million, and together with our existing Asian operations, will grow our total revenue in Asia from over $150 million in 2006 to approximately $500 million over the next few years.”

The Asia Technology Center has the following capabilities:

Engineering:

• Full capability to design & develop airbags, steering wheels and seat belts. This includes CAD, CAE and complete safety system simulation (MADYMO)
• R&D capability for advanced designs and systems
• Full safety restraint system integration capability
• Manufacturing engineering and engineering change management
• Program management capability
• Over 100 engineering personnel planned by the end of 2006

Testing Laboratory:

• Dynamic Sled Lab (12 - Inch Hyge Sled – the first of its kind by a safety supplier in China)
• Environmental lab
• Physical testing lab
• Airbag deployment lab
• NVH lab
• Metrology lab

Model Shop:

• Prototype sample capability (forming, machining, injection molding, SLA)
• Prototype tooling capability (CNC, EDM)
• Sew lab
• Prototype assembly

Since the joint ventur e’s inception in June 2004, Key Safety Systems has received multiple new business awards that will be managed at the new techn ology and manufacturing center. The manufacturing center has production plans to make over 5 million airbag modules per year, over 2 million seat belt assemblies per year, and over 2 million steering wheels per year.

About Key Safety Systems

Key Safety Systems Inc., a Key Automotive Group-affiliated company since April 2003, is a leading global designer and manufacturer of safety-critical components and systems including airbags, seat belts and steering wheels. Key Safety Systems’ products are used in more than 300 vehicle models produced by over 45 automobile manufacturers worldwide. Key Safety Systems' global reach comprises 32 manufacturing, technical and sales facilities in 12 countries generating approximately $ 1 .1 billion in sales and employing more than 9,000 people. The company currently has two sales offices in China and another joint venture in Tianjin, China.

About Key Automotive Group

The Key Automotive Group of companies (KAG) is an affiliation of premier suppliers of components and systems to the global automotive industry. KAG, owned by Ewing Management Group, was founded in 2002 and generate s approximately $1. 8 billion in sales and employ s more than 14,000 people in state-of-the-art technical and manufacturing facilities in 15 countries in North America, Europe and Asia. Key Automotive Group includes Key Safety Systems, Inc. and Key Plastic L.L.C. Key Plastics is an award winning global leader in automotive plastic components and assemblies. It has a joint venture in China with Jiehua Automotive Firm Development Center, Shanghai, PRC. The partnership is called Shanghai Key Automotive Plastic Component Company, Ltd.

Back to News Page