Mark IV Systemes Moteurs Air Intake and Cooling Sale

July 29, 2011

We are pleased to announce that the agreement to sell our Mark IV Systemes Moteurs Air Intake and Cooling business (AIC) to Sogefi S.p.A., an Italian automotive parts company, has closed. The transaction value was approximately Euro 150 million or $210 million. We are evaluating options for redeploying the proceeds that will continue the expansion of our core Dayco Power Transmission Business. These could include further investments in BRIC ventures, rationalization of capacity and other potential acquisitions to the extent they are strategically and economically acceptable.