Honda-The Power of Dreams
Vaillant and Honda develop cogeneration system for single family homes

· Co-operation agreement signed – intensive test program for coming 2 years
· Bundling technologic competencies Honda and Vaillant

FRANKFURT, Germany, March 10, 2009 - The German heating and air conditioning specialist Vaillant and the Japanese technology company Honda will jointly develop gas-powered micro cogeneration systems for the European market. Focus from the beginning will be Germany. The two companies have signed a co-operative agreement. The systems will be utilized for the efficient, environmentally friendly and cost-effective production of power and heat in detached houses. "We are pleased to have been able to win Honda, the world's leading engine manufacturer, as a partner. With this co-operation we will be able to further expand our portfolio of energy-saving and environmentally friendly products,” said Dieter Müller, Managing Director of the Vaillant Group. "The competence of Vaillant in heating and air conditioning systems and the long experience of Honda in the development and production of highly efficient systems for cogeneration can create the best product,” emphasised Takayuki Arima, President of Honda Motor Europe (North) GmbH in Offenbach. Cogeneration of heat and power (CHP) enables simultaneous production of heat and electricity and is, in Europe, currently almost exclusively used in industry, district heating sectors and in large real estate.

Dieter Müller, CEO Vaillant Group, Takayuki Arima, President of Honda Motor Europe (North) GmbH (f.l.t.r. .) at the ISH-Press-Conference in Frankfurt, 10. March 2009

Dieter Müller, CEO Vaillant Group, Takayuki Arima, President of Honda Motor Europe (North) GmbH (f.l.t.r. .) at the ISH-Press-Conference in Frankfurt, 10. March 2009

Honda and Vaillant successful in cogeneration technology for years
In Japan and the U.S. Honda is already offering small gas-powered micro-cogeneration units (MCHP) for use in detached houses for several years. So far, more than 80,000 systems have already been sold and installed in the two countries. Honda has, for many years, used its production know-how for the mass production of these power products. Vaillant with its gas-engine-powered mini-cogeneration system for the use of combined heat and power (CHP) in large detached and multifamily houses and commercial buildings belongs to the European market leaders in this field.

Bundled competencies
Both partners will bring their specific and longstanding expertise into the co-operation. Vaillant will develop the complete hydraulics of the heating system, the control technology and the connection technology. For the control of the total system the heating technology specialist will develop an "energy manager", which secures efficient and demand-oriented use of energy. Honda as a leader in environmental and engine technologies will develop its MCHP unit according to the specific German and European requirements.

Energy saving and CO2 reduction through decentralised energy supply with CHP
The use of cogeneration for heat and power in the private sector is an essential milestone to achieving Europe's climate protection objectives. With the Vaillant and Honda-developed solution, it will be possible to reduce CO2 emissions per household significantly. The Federal Government promotes decentralised cogeneration with the CHP Law, which came into force on 1 January 2009. The goal is to increase the share of electricity created by co-generation in Germany from around 12 percent today to 25 percent by 2020. The consumer gains three benefits from the use of combined heat and power. Through the efficient use of energy costs for heating and electricity are reduced. The influence of electricity price increases is reduced because a large part of the required electricity is produced at home. Electricity, which exceeds a household’s needs, is fed into the grid. The Federal Government is promoting the purchase of a cogeneration system with an investment subsidy. Moreover, the entire quantity of electricity generated over 10 years is promoted with a CHP bonus and supported indefinitely by relief from the current electricity tax. All the gasused is also free from the energy tax.

About Vaillant Group
The Vaillant Group is an internationally operating heating, ventilation and air-conditioning technology concern based in Remscheid, Germany. As one of the world's market and technology leaders, the Vaillant Group develops and produces tailor-made products, systems and services for domestic comfort. The product portfolio ranges from efficient heating appliances based on customary fuels to system solutions for using regenerative energy sources. In financial year 2008 the company, which has been family-owned since its founding in 1874, achieved with almost 13,000 employees sales totalling €2.4 billion.