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Automotive Aftermarket Manufacturing

Modine Expands Global Presence through Acquisition in Asia

Modine Manufacturing Co. has signed a definitive asset purchase agreement for a major expansion into Asia through the acquisition of the Automotive Climate Control Division (ACC) of WiniaMando Inc. WiniaMando, headquartered in South Korea, designs and manufactures heating, ventilating and air conditioning (HVAC) systems for commercial vehicles, trucks, buses and trains as well as other heat transfer components, such as oil coolers and charge air coolers.

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RACINE, WI — Modine Manufacturing Co. has signed a definitive asset purchase agreement for a major expansion into Asia through the acquisition of the Automotive Climate Control Division (ACC) of WiniaMando Inc. The acquisition is expected to increase Modine’s revenue by more than 15 percent.

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WiniaMando, headquartered in South Korea, designs and manufactures heating, ventilating and air conditioning (HVAC) systems for commercial vehicles, trucks, buses and trains as well as other heat transfer components, such as oil coolers and charge air coolers.

The purchase of ACC will serve as the foundation for Modine-Asia, the company said, providing a base for further expansion and growth, accelerating Modine’s entry into Asia. ACC owns a state-of-the-art wind tunnel, research center and manufacturing plant in South Korea, and a wholly owned facility in Shanghai, China, as well as a 50/50 joint venture in Hefei, China.

Modine is purchasing the division for approximately four times EBITDA (earnings before interest, taxes, depreciation, and amortization) or $88 million, including $83 million in cash plus the assumption of certain long-term liabilities.

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In 2003, ACC generated approximately $184 million in sales, $14 million in pretax operating income, and $23 million in EBITDA. Modine said it expects the ACC division to grow its sales and operating income in 2004 and be accretive to earnings immediately upon closing, adding between 7 and 11 cents per share to its current 2004-2005 fiscal year, recognizing the partial year impact of the acquisition. The acquisition will be financed through a draw down of excess cash and utilization of existing credit lines.

The acquisition is expected to close by mid-summer 2004.

For more information about Modine, go to: www.modine.com.

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