Equity Firm Acquires Majority of VCST

December 21, 2003—Fox Paine & Co.,a San Francisco-based private equity firm, has acquired a majority stake in VCST Industrial Products N.V., a Belgium-based automotive company that also owns VCST Powertrain (formerly Reef Gear),located in Detroit, MI.

Belgian investment firm Navas Investments B.V. holds a minority stake in VCST. Members of current management are also expected to acquire a minority stake in the company,according to VCST's press release.

In a written statement, Carlo Spoors, managing director of VCST said, "We are excited to begin our partnership with Fox Paine, who, together with VCST's management team and employees, will help VCST realize its full potential by building upon our consumer relationships."

VCST Industrial Products, headquartered in Sint Truiden, Belgium, develops and produces highly engineered components for vehicles, including engine and transmisison gears, transmission shafts and aluminum valve blocks.