13 March 1997

Engelhard Corporation announced today that it has formed a joint venture with UCAL Fuel Systems Ltd. for manufacture and sale of automotive-emission catalysts in India.

Engelhard owns 70% of the new company, called Engelhard Environmental Systems (India) Ltd., and UCAL owns the remaining 30%. The joint venture plans to build a manufacturing plant 20 kilometers south of Madras (Chennai) close to customer operations.

"India is a strategic location for us and we see long-term growth opportunities here," said Ed Stanczak, vice president of Engelhard's Automotive Emission Systems business. The vast majority of the world's auto makers have, plan to have, or are expanding their passenger vehicle operations in India.

"Catalytic converters have been required on new passenger vehicles sold in India's four major cities since 1995," said S. Muthukrishnan, chairman of UCAL. "We have had even stricter standards for cars since 1996 and by the year 2000, India is expected to enforce more stringent European emission standards."

"This joint venture is a direct answer to the automakers' needs," explained Stanczak. "As more automakers produce vehicles in India, they need our emission- control solutions. Our plant will support local content needs and provide just-in-time catalyst delivery to their operations."

The catalytic converters, when installed on vehicles, reduce gaseous emissions before they leave the tailpipe and enter the atmosphere. Worldwide, automotive catalytic converters with Engelhard technology have already prevented more than 230 million tons of pollution from reaching the air.

About 150,000 auto catalysts were sold in India in 1996. The market is forecasted to exceed 500,000 units by 2000, growing to over 1,000,000 units by 2005. Additionally, there will be a growing demand for motorcycle catalysts.

Unleaded gasoline, a requirement for effective use of automobile catalytic converters, will be available in 40 cities throughout India by 1998, providing convenient unleaded fuel sources for 80% of all passenger vehicles. Complete conversion to unleaded fuels is expected by 2002.

Engelhard Corporation is a provider of environmental technologies, specialty chemical products, engineered materials and related services. Its Environmental Technologies Group is the world's leading manufacturer of automotive catalysts and systems, clean air catalysts and systems for trucks and buses, as well as a leader in clean air catalysts and systems for construction and mining equipment, and stationary sources such as manufacturing plants, refineries, and power generation plants.

UCAL Fuel Systems is a major manufacturer of carburetors and fuel pumps. It is a publicly traded joint venture between UCAL Group and Mikuni Corporation of Japan.

Source: Engelhard Corporation