Tenneco Automotive Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
December 15, 2003
TENNECO AUTOMOTIVE SIGNS LICENSING AGREEMENT WITH DUPONT TO LAUNCH NEW CAR CARE PRODUCT LINE
Companies will debut a DuPont™ Teflon® car appearance product line through more than 10,000 automotive retail outlets in early 2004
LAKE FOREST, ILLINOIS, December 15, 2003 - Tenneco Automotive (NYSE:TEN) today announced that it has entered into an exclusive licensing agreement with DuPont (NYSE: DD) to develop, manufacture and market certain car care products under the DuPont™ brand in North America.
Initially, the two companies will launch a line of DuPont branded car appearance products - including waxes, protectants, car wash, and tire and wheel care products - which will be available at retailers throughout the United States and Canada. These products will feature DuPont™ Teflon® in the North America DIY (Do It Yourself) category, for effective protection and shining. Early response from our customers has been overwhelmingly positive, as the products will be available at more than 10,000 automotive retail outlets throughout the United States and Canada, beginning in January 2004.
This agreement represents Tenneco Automotive's first strategic step to expand its aftermarket product offerings beyond the ride control and emission control categories.
"We are excited to be working with DuPont to enter the car care product market and to broaden beyond our traditional product lines," said Mark P. Frissora, chairman and CEO of Tenneco Automotive. "Our innovative products, combined with the powerful DuPont™ and Teflon® brands and Tenneco Automotive's extensive distribution network, have the opportunity to provide a high value, high performance offering in this market segment."
"Partnering with Tenneco Automotive combines their decades of automotive expertise and DuPont's science and technology capabilities to make better, more innovative products," said Ellen J. Kullman, Group Vice President, DuPont Safety & Protection. "This partnership allows us to jointly market products consumers can trust for quality assurance."
The new DuPont™ Car Care products have been developed to deliver a high level of performance in terms of cleaning ability and enhancing overall vehicle appearance. The formulations are water-based and avoid acids and caustic materials found in other automotive appearance products. The line will include: DuPont™ Teflon® Car Wash, DuPont™ Teflon® Car Wax, DuPont™ Teflon® Protectant, DuPont™ Teflon® Wheel Cleaner, DuPont™ Teflon® Spray Wax, DuPont™ Teflon® Protectant Wipes and DuPont™ Teflon® Tire Shine.
The two companies intend to work together to develop additional car care product lines for the category, which is a $775 million market in North America alone. Specific terms of the long-term deal were not disclosed.
Tenneco Automotive is a $3.5 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 19,600 employees worldwide. Tenneco Automotive is one of the world's largest producers and marketers of ride control and exhaust systems and products, which are sold under the Monroe® and Walker® global brand names. Among its products are Sensa-Trac® and Monroe Reflex® shocks and struts, Rancho® shock absorbers, Walker® Quiet-Flow® mufflers and DynoMax® performance exhaust products, and Monroe® Clevite® vibration control components.
DuPont is a science company. Founded in 1802, DuPont puts science to work by solving problems and creating solutions that make people's lives better, safer and easier. Operating in more than 70 countries, the company offers a wide range of products and services to markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.
This press release contains forward-looking statements. Words such as "will," "intend," and similar expressions identify forward-looking statements. These forward-looking statements are based on the current expectations of the company (including its subsidiaries). Because these forward-looking statements involve risks and uncertainties, the company's plans, actions and actual results could differ materially. Among the factors that could cause these plans, actions and results to differ materially from current expectations are: (i) the general political, economic and competitive conditions in markets and countries where the company and its subsidiaries operate, including currency fluctuations and other risks associated with operating in foreign countries; (ii) changes in automotive manufacturers' production rates and their actual and forecasted requirements for the company's products, including the company's resultant inability to realize the sales represented by its awarded book of business; (iii) changes in consumer demand and prices, including decreases in demand for automobiles which include the company's products, and the potential negative impact on the company's revenues and margins from such products; and (iv) the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances beyond the control of the company and its subsidiaries. Other factors that could cause the company's plans and results to differ materially from current expectations are described in the company's annual report on Form 10-K for the year ended December 31, 2002, to which you are referred for additional information. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Tenneco Automotive, Media Relations
(1) 847 482 5607
Tenneco Automotive, Investor Relations
(1) 847 482 5042