Vaillant Group expands air-conditioning business

• Strategic partnership with Chinese air-conditioning specialist Chigo 
• Acquisition of minority interest 
• European air-conditioning business with high growth rates

Remscheid, 2 May 2007 – Vaillant Group, Germany, and Chigo Holding Ltd., China, have signed an agreement on a long-term strategic partnership. As a part of the agreement, Vaillant Group has acquired a minority interest in the Chinese air-conditioning specialists. Confidentiality was agreed on the price and size of the package. Vaillant Group is thus strengthening its position as a supplier of energy-efficient air-conditioning systems in Europe and at the same time secures cooperation with one of the world's biggest air-conditioning technology producers.

"The strategic fit of the two companies is excellent – both geographically and in terms of their products," said Chigo President Li Xinghao and Claes Göransson, Managing Director of the Vaillant Group. "Through joint research and development, exclusive product solutions will in future be developed especially for the European air-conditioning markets." Vaillant Group will as a shareholder of Chigo Holding Ltd., with which it already has cooperated for several years, integrate itself more strongly in the company 's R&D activities, production and quality assurance. In return, Chigo will benefit from the know-how and the comprehensive sales network of Vaillant Group in the European growth markets, where there is strong demand for energy-efficient air-conditioning technology systems. Overall, the European air-conditioning technology market is growing by about 15 per cent a year.

Headquartered in Remscheid, Germany, Vaillant Group is an internationally successful group that focuses on heating, ventilation and air-conditioning technology. As one of the world's market and technology leaders, the company develops and produces tailor-made products, systems and services for domestic comfort. The product portfolio ranges from energy efficient heating appliances based on fossil fuels to system solutions for the use of regenerative energies. In 2006, Vaillant Group, which has been family-owned since its founding in 1874, achieved sales totalling about
€2 billion with approximately 10,100 employees.

Chigo is one of the world's leading manufacturers of air-conditioning technology with self-owned complete vertical compound supply chains and strong technology development capability as well as a national-level reliability lab as its support. As one of the biggest global domestic air-conditioning manufacturers and with its fourth position in the domestic Chinese market, Chigo produced in 2006 more than three million air-conditioning systems. The company grows continuously and has significantly extended its market shares in recent years. Its products are exported to more than 160 countries. Chigo always pursues "Building the world largest refrigeration base” as its strategic target.


Contact
Dr Jens Wichtermann
Head of Corporate Communications
Vaillant Group
D-42850 Remscheid
Phone: +49 2191 18-2754
Fax: +49 2191 18-2895
Mobile: +49 175 2951810
jens.wichtermann@vaillant.de
www.vaillant-group.com