Tyco Electronics Intends to Purchase .64 Terminal Business From OSRAM SYLVANIA, Which Confirms Its Commitment to Remain a Strong Interconnect Systems Supplier to the Auto Industry - Company Business and Marketing

Cambridge Telcom Report, June 5, 2000

OSRAM SYLVANIA's Electronic Components & Materials (EC&M) division, based in Warren, PA, Wednesday announced that it has signed a letter of intent to sell the intellectual property and manufacturing assets of EC&M's .64mm GET terminal system business to Tyco Electronics Corporation. The terminal system is used in automotive applications. Financial terms were not disclosed.

"The pending sale will have no impact on any other EC&M product line, and Electronic Components & Materials will continue its role as a leading manufacturer of high-quality connector solutions for automotive lighting and antenna/telematic systems and custom automotive application products," said Rick Leaman, director of sales and marketing. "We are committed to growing in the automotive interconnect business."

Building on its strong reputation for automotive lighting interconnect systems as a supplier to OSRAM SYLVANIA's global Automotive Lighting business, EC&M has grown over the years into a leading designer, manufacturer and supplier of custom interconnect systems for everything from airbags and antilock braking systems to antenna systems, speed controls, performance sensors and engine control systems. The company manufactures hundreds of millions of automotive interconnect systems annually to a broad customer base.

The pending transaction between OSRAM SYLVANIA and Tyco Electronics for the .64 terminal business is expected to become final in July. Once a definitive agreement has been signed, 18 salaried EC&M employees will be offered jobs with Tyco Electronics. At that time, all other salaried and hourly employees will remain employees of OSRAM SYLVANIA in Warren.

Frank Santiago, vice president and general manager of EC&M, explained the rationale behind the .64 terminal agreement. "In 1997, we established a specialized connector company when we entered into a consortium with Siemens EC to design, manufacture and market the .64 connector system. Last year, Tyco International acquired Siemens EC along with the obligations of our contract," Santiago said.

"Given these circumstances and Tyco's full support of the new program, we believe the sale of the .64 connector business, which is complementary to the business Tyco already owns, is in the best interest of both companies and our customers. Tyco will be able to leverage its global presence and technical expertise to pursue the consortium's original objectives of providing the market with advanced .64 connector technology while EC&M will continue to strengthen its core competencies of insert moldings, injection molding, automated connector assembly, stamping and plating."

Santiago noted that the Warren facility is both ISO and QS 9000 certified and has a demonstrated capability to support the rigorous demands of the automotive industry. "Moreover, as part of the global OSRAM SYLVANIA Precision Materials & Components business, the division also is positioned to take advantage of new automotive interconnect opportunities outside of North America," Santiago added.

OSRAM SYLVANIA is the North American operation of OSRAM GmbH of Germany, one of the world's leading lighting manufacturers and part of the Siemens family of companies. With headquarters in Danvers, Mass., OSRAM SYLVANIA manufactures and markets a wide range of lighting products, electronic and magnetic ballasts, automotive interconnect systems and other precision materials and components for industrial and commercial users, original equipment manufacturers and consumers. For further information regarding SYLVANIA products and services, please refer to www.sylvania.com.

Tyco Electronics Corporation, a unit of Tyco International Ltd., is headquartered in Harrisburg, Pennsylvania, USA. It is the largest passive electronic components supplier in the world, with facilities located in 56 countries serving customers in the aerospace, automotive, computer, communications, consumer electronics, industrial and power industries. Tyco Electronics provides advanced technology products from its AMP, Elcon, Elo Touchsystems, HTS, M/A-COM, Madison Cable, OEG, Potter & Brumfield, Raychem, Schrack and Simel brands.

Tyco International Ltd. (NYSE:TYC; LSE: TYI; BSX: TYC) is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components and undersea telecommunications systems; the world's largest manufacturer, installer, and provider of fire protection systems and electronic security services; has strong leadership positions in disposable medical products, plastics, and adhesives; and is the largest manufacturer of flow control valves. The company operates in more than 80 countries around the world and had 1999 revenues of $22.5 billion.