Disposal of Joint Venture Shareholding

GKN agrees to sell stake in Emitec GKN plc has agreed to sell its 50% shareholding in the emissions reductiontechnology business Emitec Gesellschaft für Emissionstechnologie mbH (Emitec)to Continental for a cash consideration of €46 million. Completion of thetransaction is subject to regulatory approvals. GKN will use the net proceedsto reduce group net indebtedness. Emitec was established as a 50:50 joint venture in 1986. It is a specialistmanufacturer of metallic catalytic converter substrates and more recently ofselective catalytic reduction dosing systems. Following this transaction,Continental AG will have 100% ownership of Emitec. Nigel Stein, Chief Executive, GKN, commented: "Emitec has been a greatinvestment for GKN. It is a good business that will now benefit from fulltechnology connection with Continental's emissions control systems. I wouldlike to thank everyone in Emitec and offer them my best wishes as the businessenters this new phase".

ENDS