The EQT IV fund (“EQT”) announced today that the fund has signed an agreement with DaimlerChrysler to acquire 100% of German engine manufacturer MTU Friedrichshafen GmbH including the off highway part of Detroit Diesel in the US. EQT, with a strong track record of fostering growth and value creation in its 39 companies it has invested in over the last 10 years, intends to support MTU’s international expansion plans. The acquisition is subject to approval from relevant competition authorities.

“We are committed to back MTU in their growth strategy. We at EQT are very glad that we were chosen as the new owner of MTU, and we want to help MTU to continue to prosper and be even more successful in the future,” said Marcus Brennecke, Managing Partner of EQT Equity in Germany. “We are very much looking forward to working together with management and employees to develop the company’s potential.”

EQT was set up in 1994. In total EQT has invested in 39 companies in Northern Europe, with combined sales of approximately €16 billion.

“With the sale to EQT, we are putting MTU Friedrichshafen on the right track for continued expansion,” said Dr. Rüdiger Grube, Member of the DaimlerChrysler Board of Management for Corporate Development. “As the prices under discussion with the three bidders were very similar, we decided in favor of the bidder with the most convincing concept.”

Key components of the agreement are:

• The closing is expected to be completed within the first Quarter of 2006 
• EQT will install a supervisory board with experienced industrialists from its network after the  deal is completed
• Friedrichshafen will remain the company’s headquarters, with the legal entity, management and operations
• EQT will invest in growth and market leadership

 “The management is very satisfied that EQT has been chosen as the new owner of MTU. We are happy that EQT, with its industrial approach, encourages the management and its current strategy”, said Volker Heuer, CEO of MTU. “The high willingness of EQT to invest will enable us to extend our technology leadership.”

The acquisition of the MTU Group includes MTU GmbH, Friedrichshafen, and the off-highway arm of Detroit Diesel Corporation. The MTU Group’s operations consists of diesel engines and complete drive and propulsion systems for ships, armoured vehicles, decentralized power generation and further industrial applications. The MTU Group has annual sales of more than €2 billion and employs over 7000 people worldwide.

Contacts:
Marcus Brennecke, Managing Partner, EQT Germany,
+49 89 25 54 99 0

Johan Hähnel, Director Communications & PR,
+46 8 506 55 322, johan.hahnel@eqt.se