SOURCE: WABCO Holdings Inc.

September 09, 2010 07:00 ET

WABCO Appeals Fine From European Commission; Requests Expedited Court Procedure for Fast-Track Decision

BRUSSELS, BELGIUM--(Marketwire - September 9, 2010) -  WABCO Holdings Inc. (NYSE: WBC) (www.wabco-auto.com), a global technology leader and tier-one supplier to the commercial vehicle industry, today confirmed that it has appealed the recently announced decision by the European Commission to assess a EUR 326 million civil fine ($400 million at the date of assessment) against entities representing the former American Standard Companies Inc. and certain of its former operations in Europe.

As previously disclosed, WABCO has never manufactured or marketed any of the products that are the subject of this investigation and no one from WABCO had any involvement with the matter. However, as disclosed by WABCO in connection with its spin-off from American Standard Companies Inc. in 2007, and as disclosed in WABCO's Form 10K and 10Q filings, WABCO is obliged to indemnify American Standard Companies Inc., now known as Trane Inc., and certain of its former entities involved in the Commission's investigation against any fine related to this investigation.

The fine is due for payment to the Commission on September 30, 2010, independent of any appeal process. As required by its indemnification agreement with Trane, WABCO has paid the full amount of the fine into an escrow account and the funds will be released for payment to the Commission prior to the due date.

WABCO filed its appeal on September 8, 2010 in the General Court of the European Union, located in Luxemburg, requesting in a separate reduced brief that the appeal be treated as an expedited procedure. WABCO expects to be informed approximately by year-end whether the court will allow the expedited procedure which could result in a decision around 18 months from the date of filing; otherwise, the court's decision is expected within approximately four years.

"We believe that most notably the Commission has inconsistently applied its own methodology, resulting in a gross overstatement of the duration and gravity of activities in question regarding the one jurisdiction that accounts for the vast bulk of the fine. Consequently, the fine is plainly excessive," said Jacques Esculier, Chairman and Chief Executive Officer. "Furthermore, we believe that the Commission has understated the extensive cooperation demonstrated by former entities of American Standard in the Commission's investigation."

"WABCO has also filed for an expedited procedure because we see it as a fair path to recognize our strong and unique grounds for appeal as well as the large amount of money at stake. Even though it is rarely granted by the court, an expedited procedure could put this matter on a fast track and shorten the appeal process by two to three years," said Esculier.

About WABCO

WABCO Vehicle Control Systems (NYSE: WBC) is a leading supplier of safety and control systems for commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability, and transmission automation systems supplied to the world's leading commercial truck, trailer, and bus manufacturers. With sales of $1.5 billion in 2009, WABCO is headquartered in Brussels, Belgium. For more information, visit www.wabco-auto.com

Forward-Looking Statements

This document contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995 that are based on management's good faith expectations and beliefs concerning future developments. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "strategies," "prospects," "intends," "projects," "estimates," "plans," "may increase," "may fluctuate," and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward looking in nature and not historical facts. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the actual level of commercial vehicle production in our end markets, adverse developments in the business of our key customers, pricing changes to our supplies or products, and the other risks and uncertainties described in the "Risk Factors" section and the "Information Concerning Forward Looking Statements" section of WABCO's Form 10-K, as well as in the "Management's Discussion and Analysis of Financial Condition and Results of Operations - Information Concerning Forward Looking Statements" section of WABCO's Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such forward-looking statements.

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