Acquisition

GKN acquires Williams Hybrid Power Limited GKN plc, the global engineering group, today announces it has acquired theentire issued share capital of Williams Hybrid Power Limited ("WHP") fromWilliams Grand Prix Engineering Limited. WHP specialises in the design and manufacture of composite flywheel-basedenergy storage systems, initially exploring options for the bus, truck and trammarkets. GKN and WHP have been working together to validate the use of thistechnology and now that this stage has been reached, it is appropriate for GKNto use its global resources and manufacturing capability to maximise thecommercial opportunities that exist. The consideration payable for the acquisition comprises cash consideration of £8.0m payable at closing, together with potential uncapped additionalconsideration payable based upon future sales of WHP products in the following10 years. That additional consideration will be calculated at 3.5% of sales ineach of the first five years, declining on a stepped basis to 1.5% by the endof the 10 year period, and shall only be payable to the extent that itcumulatively exceeds £4.0m. The acquisition will be funded from GKN's existingresources. For the financial year ended 31 December 2013, WHP made a loss after taxationof £1.0 million and had gross assets of £3.2 million. Further information: Analysts/Investors: Guy StainerInvestor Relations DirectorGKN plcT: +44 (0)207 463 2382M: +44 (0)7739 778187E: [email protected] Media: Chris FoxGroup Communications DirectorGKN plcT: +44 (0)1527 533238M: +44 (0)7920 540051E: [email protected] Notes to Editors GKN plc is a global engineering group. It has four divisions; GKN Aerospace,GKN Driveline, GKN Powder Metallurgy and GKN Land Systems, which operate in theaerospace, automotive and land systems markets. Nearly 50,000 people work inGKN companies and joint ventures in more than 30 countries. GKN is listed onthe London Stock Exchange (LSE: GKN) and recorded sales of £7.6 billion in theyear to 31 December 2013. Williams Grand Prix Engineering Limited is a leading Formula One team andadvanced engineering company. The company's core competencies are the designand manufacture of Formula One race cars, and the deployment of this expertisein running the team's entries into the Grands Prix each season. WilliamsAdvanced Engineering division harnesses Formula One derived technology,development pace and knowledge to deliver highly innovative products andservices to the motorsport, automotive, transport, and energy sectors.