SK Continental E-motion Launches Global Battery Business

           SK Continental E-motion Launches Global Battery Business

-- SK Continental E-motion closes transaction and starts operations in January

-- Continental and SK Innovation to jointly develop, produce and distribute
lithium-ion battery systems

-- Access to broad expertise of parent companies paves the way for global
market leadership

PR Newswire

BERLIN, HANOVER, Germany, REGENSBURG, Germany, and SEOUL, South Korea, Jan.
22, 2013

BERLIN, HANOVER, Germany, REGENSBURG, Germany, and SEOUL, South Korea, Jan.
22, 2013 /PRNewswire/ -- At the beginning of this year, SKContinental
E-motion closed the transaction and officially started operations following
the approval of the relevant authorities. The company, which was established
by SK Innovation, Seoul (South Korea), and Continental, Hanover (Germany),
will jointly develop, produce and distribute lithium-ion based battery systems
for cars and light commercial vehicles. All relevant authorities have given
unrestricted approval to the antitrust application submitted by the two
companies. All provisions of the agreement signed on July 23, 2012 came into
force on completion of the approval process.

"Bringing together the capabilities of both companies opens up completely new
options for the future of mobility. SK Continental E-motion's battery systems
will be among the most advanced designs in the global automotive market," said
Ja Young Koo, President & CEO of SK Innovation. "The synergies generated by
Continental's extensive systems expertise and automotive engineering skills
together with SKI's technological leadership in battery cells and separators
will enable us to make SK Continental E-motion one of the world's leading
suppliers of battery systems," added Dr. Elmar Degenhart, chairman of
Continental's executive board.

SK Innovation has a 51 percent stake in the new company while Continental owns
49 percent. Both Continental and SK Innovation plan to invest about 270
million Euros in SK Continental E-motion for the next five years.

The business strategies of SK Innovation and Continental will not be affected
by their joint management of this new venture and both companies will continue
to supply their customers in the automotive industry with their complete
product range. SK Continental E-motion started working on initial development
programs in the 48V mild hybrid segment as well as for commercial vehicle

The company is headed by Robert Lee as chief executive officer (CEO), former
SK Innovation and the position of chief financial officer (CFO) is held by
Marcus Heinemann, former Continental. Initially, SK Continental E-motion will
employ around 220 people worldwide, sourced in almost equal proportions from
the two partner companies. The venture, which is managed operationally from
Berlin, began operations on January 2, 2013. The fully integrated teams will
work on a global development footprint based at locations in Berlin, Germany
and Daejeon, Korea.

SK Innovation and Continental form leading battery systems supplier

Hybridization and electrification are becoming increasingly important in
passenger cars and light commercial vehicles, and batteries are a key
component in this technology field. SK Continental E-motion will provide the
latest lithium-ion battery technology to help international vehicle
manufacturers to introduce electric drivetrains around the world. The company
benefits from the skills of the technology leaders behind it, such as SK
Innovation's in-depth expertise in the development of battery cells and
separators. For its part, international automotive supplier Continental has
extensive experience in battery-related electronics and complete battery
systems as well as their integration into vehicles.

With preliminary sales of €32.7 billion in 2012, Continental is among the
leading automotive suppliers worldwide. As a supplier of brake systems,
systems and components for powertrains and chassis, instrumentation,
infotainment solutions, vehicle electronics, tires, and technical elastomers,
Continental contributes to enhanced driving safety and global climate
protection. Continental is also an expert partner in networked automobile
communication. Continental currently has more than 170,000 employees in 46

Continental has been investing in the development and optimization of
climate-friendly systems and components for alternative drives for over ten
years. In 100 series projects for 20 manufacturers worldwide, around 1,600
specialists are currently working on further developing existing concepts as
well as new innovations for hybrid and electric vehicles. To ensure safe,
efficient, networked and comfortable mobility, Continental is bringing
together the corporation's expertise in integration, energy optimization,
drive management, vehicle safety, information management and tires. Hybrid and
electric vehicle components from all business units can be adapted to specific
vehicle requirements worldwide, allowing them to be used in almost all vehicle
classes and drive types.

SK Innovation, founded in 1962 as Korea's first oil refinery and with sales of
US$59.3 billion in 2011, is one of the world's leading energy and
petrochemical companies. SK Innovation, which focuses on research and
development, deals primarily with lithium-ion batteries for electric vehicles,
materials for information electronics materials (I/E) for IT devices and the
field of exploration and production (E&P), while its subsidiaries SK Energy
(South Korea's largest refinery company), SK Global Chemical (global top-tier
chemical company) and SK Lubricants (global market leader for technically
sophisticated and high-grade lubricants) successfully pursue their own
business visions and strategies. SKI's lithium-ion battery business unit was
created in 1996 and currently supplies leading international carmakers
including Daimler and Hyundai.

Online media database:

Email Contact to SK Continental E-motion:

The webpage of SK Continental E-motion you will find under:

SOURCE Continental

Contact: Hannes Boekhoff, Vice President for Media Relations, Continental,
Vahrenwalder Str. 9, 30165 Hannover, Germany, Phone: +49 511 938-1278; Fax:
-1016,; or Simone Geldhauser, External
Communications, Continental, Powertrain Division, Siemensstr. 12, 93055
Regensburg, Germany, Phone: +49 941 790-61302; Fax: -99 61302,
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