Johnson Controls to acquire Delphi's global automotive battery business

MILWAUKEE/BURSCHEID (USA, Wisconsin/ Germany) - JohnsonControls, Inc. (NYSE: JCI) today announced that it had signed anon-binding letter of intent to acquire Delphi Corporation'sglobal automotive battery business for approximately $212.5million, subject to adjustments.

Additionally, in conjunction with the acquisition, JohnsonControls anticipates receiving a global long-term contract tosupply General Motors with original equipment batteries. Thebusiness to be acquired, which has annual consolidated revenuesof approximately $600 million, would include Delphi's batteryoperations in more than 10 countries, including joint ventureinterests in China and South Korea. Delphi's U.S. automotivebattery manufacturing locations are not included in thetransaction. Delphi will supply batteries from its New Brunswick,New Jersey and Fitzgerald, Georgia operations through a contractmanufacturing relationship with Johnson Controls during atransitional period through 2007. The acquisition enables JohnsonControls to participate in the rapidly-growing Asian automotivebattery market, particularly in China.

The total vehicle population in China is expected to doublein the next five years, with new car production expected to growat double-digit rates. The business being acquired has a leadingposition in original equipment batteries in China, as well as apresence in the Chinese aftermarket. "We expect that thisacquisition will enable us to extend our technology and grow ourbusiness globally, develop a leadership position in Asia, andbecome the primary supplier of original equipment batteries tothe world's largest automaker," said Gregg Sherrill, VicePresident of Johnson Controls' Automotive Group -Battery. "We're very pleased about the potential theseopportunities provide, and look forward to delivering our world-class quality and service to General Motors, and to new originalequipment and aftermarket customers around the world."The transaction is expected to close in the summer of 2005,subject to satisfactory completion of due diligence procedures,negotiation and execution of a definitive acquisition agreement,receipt of necessary regulatory approvals, and a supply contractwith General Motors.

Johnson Controls is a leading global provider of automotivebatteries. The company manufactures and distributes more than 80million batteries annually, and is the world's largest producerof power-storage devices for passenger vehicles and otherapplications. Johnson Controls has made forward-looking statements in thisdocument pertaining to its letter of intent to acquire Delphi'sglobal automotive battery business and the award of a supplyagreement with General Motors that are based on preliminary dataand are subject to risks and uncertainties. Forward-lookingstatements include information concerning possible or assumedfuture risks and may include words such as "believes,""forecasts," "expects," "outlook" or similar expressions. Forthose statements, the company cautions that numerous importantfactors, including the completion of the transaction with Delphiand the finalization of a supply agreement with General Motors,as well as those factors discussed in the company's Form 8-K(dated 26 October 2004) could affect the company's actual resultsand could cause its actual consolidated results to differmaterially from those expressed in any forward-looking statementmade by, or on behalf of, the company.Further information is available from:Johnson Controls GmbH Automotive Group Astrid Schafmeister Industriestr. 20-30 51399 Burscheid, Germany Phone: +49 2174 65-3189 Fax: +49 2174 65-3219 E-mail: astrid.schafmeister@jci.com

Johnson Controls, Inc., is a global market leader inautomotive systems and facility management and control. In theautomotive market, it is a major supplier of integrated seatingand interior systems, and batteries. For non-residentialfacilities, Johnson Controls provides control systems andservices including comfort, energy and security management.Johnson Controls (New York Stock Exchange: JCI), founded in 1885,has its headquarters in Milwaukee, Wisconsin, USA. The company'ssales for 2004 totaled US$26.6 billion, the Automotive Groupworldwide generating US$20.5 billion of this figure. The Europeanheadquarters is in Burscheid, Germany. The company's productportfolio also includes instrument panels/cockpits, door systems,overhead systems, interior electronics and electrical energymanagement.

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