Brembo and Sabelt Form Joint Venture

Posted: September 7, 2007, 9 a.m., EST

CURNO, Italy -- Brembo SpA, a manufacturer of high-performance braking systems, and Sabelt SpA, a well-known name in racing seat belts and child safety products, have signed a letter of intent with a view to integrate and develop their business operations in the area of components and special accessories for motor vehicles and motorcycles. A joint venture company, Brembo Performance SpA, will be set up. The new company will be headquartered in Curno, Italy.

The joint venture agreement is expected to be in place and the new company incorporated by the end of 2007. Brembo SpA will hold a 70 percent controlling interest in Brembo Performance, with the remaining 30 percnet held by the Marsiaj and d’Ormea families, who own Sabelt shares. The new company will operate out of Sabelt production sites at Moncalieri (Turin) and in Zilina (Slovakia) as well as Brembo factories.

“This new joint venture will enable the Brembo Group to significantly expand its product range, widening the scope from active safety components for motor vehicles and motorcycles, to include passive safety products and special accessories for cars and bikes,” said Alberto Bombassei, chairman of Brembo SpA.

“In teaming up with Brembo we are looking to develop the business worldwide -- both by pursuing internal growth and through acquisitions -- in the sector of components and special accessories destined for the original equipment, tuning and racing markets,” said Giorgio Marsiaj, president of Sabelt SpA. “A great advertisement for Italian industry, this is an initiative that will see two high-profile companies pooling their resources to achieve increased competitiveness in the global market."