Tecumseh and HATZ Sign Cooperation Agreement for the Latin American Market

TMT Motoco do Brasil, a subsidiary of Tecumseh Products Company (NASDAQ: TECUA)(NASDAQ: TECUB), and Motorenfabrik HATZ GmbH & Co. KG have signed a joint cooperation agreement that includes the manufacture of HATZ B and D series diesel engines in Brazil for sales in the growing Latin American market.

The agreement does not call for the exchange of any equity between companies. HATZ and TMT will remain independent of each other.

HATZ, a firm with 125 years of innovation in diesel engines, is an acknowledged global leader in the design of air and liquid-cooled diesel engines. The Band D series are single-cylinder air cooled diesel engines, horizontal and vertical shaft, that range in size from 232 to 722 cc and deliver from 3 to 15 HP.

Under the terms of the agreement, TMT receives the right to manufacture B and D series engines in Brazil and to market them under its own brand name throughout Latin America. TMT will die cast and machine certain components for the same series that will be assembled by HATZ and sold throughout the rest of the world.

In addition, TMT receives the right to exclusive sales and distribution of all HATZ products throughout Latin America.

There are benefits to both companies from this cooperation. HATZ acquires access to more competitive manufacturing costs while maintaining high quality and also gains an enhanced global presence without direct investment in Latin America. TMT gains access to HATZ technology and engineering leadership that provides a complement to its gasoline product line. The combined product lines allow TMT to create a strong distribution network in Latin America and will establish TMT as a clear leader in the engine field.

TMT Motoco do Brasil was created in September of 2002. It is located in the town of Campo Largo, Metropolitan area of Curitiba, in the state of Parana, Brazil.

Tecumseh Products Company is a full-line independent global manufacturer of hermetic compressors for residential and commercial refrigerators, freezers, water coolers, dehumidifiers, window air conditioning units and residential and commercial central system air conditioners and heat pumps; gasoline engines and power trains for lawn mowers, lawn and garden tractors, garden tillers, string trimmers, snow throwers, industrial and agricultural applications and recreational vehicles; electric motors and components, including AC and DC motors, blowers, gear motors and linear actuators for a wide variety of industrial and consumer applications across a broad range of industries; and centrifugal pumps, sump pumps and small submersible pumps for industrial, commercial, marine and agricultural applications.

SOURCE: Tecumseh Products Company

CONTACT: Pat Walsh, Director of Investor Relations of Tecumseh Products
Company, +1-517-423-8455

Web site: http://www.tecumseh.com/

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