Tognum expands After Sales Business in Asia

• New Joint Venture MTI with previous Business Partner MSM in Malaysia
• Implementation of Tognum’s Strategy in the area of Remanufacturing/Service

Friedrichshafen/Kuala Lumpur, 21 October 2008. The Tognum Group is expanding their After Sales Business with a new Remanufacturing, Repair and Service location in Asia. Specifically for this purpose, a Joint Venture (JV) was signed with one of their independent distributors, mtu Services Malaysia (MSM). The company will be operating under the name Motor Teknologi Industri Sdn Bhd (MTI) with its headquarters located in Rawang in Malaysia.

“This move simultaneously enhances two of our four strategic growth initiatives“, explained Volker Heuer, Chairman of the Executive Board of Tognum AG. “Not only are we promoting our business in the growing Asian market, but we are also expanding our activities in the high-margin After Sales area.“ Early in 2008, Tognum acquired SKL Motor GmbH in Magdeburg (Germany). In Magdeburg and – in the near future – in Malaysia, mtu engines and components will be overhauled within the so-called remanufacturing process.

MTU Asia has been maintaining a close business relationship with MSM and their previous subsidiary MTI for almost 20 years. As of 21 October, Tognum regional subsidiary MTU Asia will acquire 45 percent of MTI. The remaining JV shares will remain with JV partner MSM, who will continue to provide the Chief Operating Officer (COO) for this company, Dato Murad. MTU Asia will now take on the responsibility for MTI’s engineering, sales and quality assurance segments.

“This Joint Venture highlights the importance of our Malaysian base for our business in Asia“, says Peter Kneipp, Director of MTU Asia. “Malaysia offers a well-developed infrastructure, excellent educational standards and, of course, an attractive market for our service portfolio. All in all, these are excellent conditions for us to use this base to expand our Remanufacturing Business in Asia.“

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Tognum

With its two business units, “Engines” and “Onsite Energy & Components,” the Tognum Group is one of the world’s leading suppliers of engines, propulsion systems and distributed energy systems. These products are based on diesel engines with up to 9,100 kilowatts (kW) power output, gas engines up to 2,000 kW, fuel cells up to 363 kW and gas turbines up to 50,000 kW.

The product portfolio of the “Engines” business unit comprises mtu engines and propulsion systems for ships, for heavy agricultural, rail and military vehicles, and for the oil and gas industry. The portfolio of the “Onsite Energy & Components” business unit includes distributed energy systems of the brand mtu Onsite Energy, fuel-injection systems from L’Orange, and drive shafts from Rotorion. The energy systems comprise diesel engines for emergency power generation, basic and peak load, and cogeneration power plants based on gas engines, fuel cells and gas turbines that generate both electricity and heat.

In 2007, Tognum generated revenue of more than €2.8 billion and employs approximately 8,600 people. With 26 fully consolidated subsidiaries, more than 130 sales partners and 1,100 authorized dealers, Tognum’s sales and service structure has a global reach. The shares of Tognum AG (ISIN: DE000A0N4P43) have been listed in the MDAX share index since 2007.

Disclaimer regarding forward-looking statements et al.:

This report also contains forward-looking statements based on assumptions and estimates of Tognum’s Executive Board of Management. Although we assume that our assumptions and estimates on which we have based these forward-looking statements are realistic, we cannot guarantee that they will in the future prove to be correct. The assumptions and estimates, by their nature, may harbour risks and uncertainties that may cause the actual figures to differ considerably from the forward-looking statements. Factors that may cause such discrepancies include, among other things, changes in the economic and business envi¬ronment, variations in exchange and interest rates, the introduction of competing products, lack of acceptance for new products or services and changes in corporate strategy. Tognum does not undertake any obligation to update, to review or to confirm the forward-looking statements or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this announcement.