MILWAUKEE and PARIS, Oct. 11 /PRNewswire-FirstCall/ -- Johnson Controls and Saft (Euronext: SAFT)... Johnson Controls and Saft

MILWAUKEE and PARIS, Oct. 11 /PRNewswire-FirstCall/ -- Johnson Controls and Saft (Euronext: SAFT) today announced that the companies have signed a memorandum of understanding to form a joint venture for advanced technology batteries to accelerate their participation in the hybrid vehicle market.

The joint venture will develop, manufacture and sell, on an exclusive basis, nickel metal hydride and lithium ion batteries for hybrid electric vehicles (HEVs) and electric vehicles globally. The companies expect the joint venture agreement to be finalized in early 2006 and will commence joint sales and marketing activities immediately.

Nickel metal hydride is the technology used in hybrid vehicles today and for at least the next several years. Lithium ion technology, however, is expected to become the preferred hybrid battery technology in future years due to its smaller size and increased power.

The new joint venture will provide global automakers with expanded sourcing options and production capacity for nickel metal hydride battery systems. Each company is also contributing complementary capabilities to the development and commercialization of next generation lithium ion battery systems.

The two companies will combine their development teams within existing locations and will invest in state-of-the-art manufacturing facilities in line with demand.

The rapid rise in fuel prices has substantially increased the outlook for hybrid vehicle production. This new partnership will support the JV's customers' expedited hybrid programs and help ensure the availability of HEV battery systems with best-in-class technology and reliability.

Johnson Controls, a leader in automotive interior systems and the world's largest manufacturer of automotive batteries, has global development and manufacturing capabilities and has been at the forefront of research and development activities to create advanced batteries for HEVs. Last month, Johnson Controls announced the opening of a new Lithium Ion Development Laboratory in Milwaukee, Wisconsin.

Saft is a world leader in the design, development and manufacture of advanced technology batteries. It has years of experience in providing nickel metal hydride and lithium ion batteries for high performance applications from its facilities in France and the United States.

"Johnson Controls' established, long-term relationships with global automakers as a Tier 1 supplier, and Saft's advanced battery technologies combined with the strong research, development and engineering capabilities of both companies, will put the new joint venture in a unique position to compete in the hybrid vehicle market," said John Searle, Chief Executive Officer of Saft.

Gregg Sherrill, Johnson Controls' Group Vice President and General Manager said, "Saft's expertise with high-performance advanced battery technologies greatly complements our high volume manufacturing capabilities and our automotive knowledge. By working together, we will be able to provide industry-leading batteries for the HEV market globally."

Saft is a world specialist in the design and manufacture of advanced technology batteries for industry. Saft batteries are used in high performance applications such as industrial infrastructure and processes, transportation, space and defence. For more information, visit Saft at http://www.saftbatteries.com/ .

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