Oerlikon Graziano S.p.A. (A division of Oerlikon Drive Systems, Oerlikon Group) Business Report through FY ended Dec. 2010

Business Highlights

Developments outside Italy

<Czech Republic>
-In 2008, Graziano Trasmissioni Czech s.r.o., a plant in Cerveny Kostelec, Czech Republic began operations. The Company had won two new contracts in 2007 for the manufacture of automotive Power Transfer Units for 4WD cars, both of which were to be manufactured in the Cerveny Kostelec plant. (From a press release on March 31, 2008)

-In November 2007, the first full assembly program was started for the production of Torque Hub R planetary gear drive assemblies for Fairfield Manufacturing Co. Inc., a sister company in the US.


Product Development

-The Company's developments in 2010 in dual clutch technology and automated manual transmission systems for McLaren, Lamborghini and Aston Martin will go into production at the beginning of 2011.

-The Company's efforts to develop a new product line targeted at both hybrid and electric drive line systems progressed well in 2008. Following the start of production with the Norwegian manufacturer TH!NK, two additional OEM customers ordered prototypes for a new generation of transfer case products designed by the Company.

-In 2007, the Company designed a electronic limited slip differential which will reach its prototype stage in early 2008.

-In 2007, the Company planned to have an in-house developed active torque distribution system targeted at equipping future generations of transaxles.

-The Company held discussions with an OEM in 2007 regarding an electric-powered city car gearbox.

-The Company's strategic investment in Vocis Driveline Controls made in 2007 will allow the Company to enter the market of electronically controlled transmission systems.

-In 2007, the Company developed prototypes for a new automatic dual clutch transmission. This new type of transmission allows automatic gear shifting without interrupting power and thus leads to faster and smoother acceleration and more efficient transmission of power. The Company presented this transmission technology to various automobile manufacturers.