COMPANY DESCRIPTION 2001 STRATTEC Annual Report 5 Through our alliance with WiTTE-Velbert in Germany, we are expanding our automotive access control product offerings to include hood latches, trunk or liftgate latches, door latches, door handles, and vehicle access modules that contain some or all of these components. We are a direct supplier to OEM auto and light truck manufacturers, to over-the-road heavy truck manufacturers and recreational vehicle manufacturers, as well as to other transportation-related manufacturers. For the 2001 model year, we enjoyed a 62% market share in the North American automotive industry, supplying locks and keys for approximately 84% of General Motors’ production, 63% of Ford’s, 97% of DaimlerChrysler’s and 100% of Mitsubishi’s production. We also are an OEM components supplier to other “Tier 1” automotive suppliers and a wide array of smaller industrial manufacturers. MARKETS Milwaukee Distribution Service Warehouse Direct sales to various OEMs represent approximately 82% of our total sales. The remainder of the company’s revenue is received primarily through sales to the OEM service channels, and the locksmith aftermarket. Sales to our major automotive customers are coordinated through our direct sales personnel located in our Detroit-area office. Sales also are partially facilitated through daily interaction between our application engineers located in Detroit and customer engineering departments. Sales to other OEM customers are accomplished through a combination of our own sales personnel and manufacturer representative agencies. STRATTEC’s products are supported by an extensive staff of experienced lock and latch engineers. This staff, which includes product design, quality and manufacturing engineers, is capable of providing complete design, development and testing services of new products for our customers. This staff also is available for customer problem solving, warranty analysis and other activities that arise during a product’s life cycle. Our customers receive aftersales support in the form of special field service kits, service manuals, and specific in-plant production repair programs. The majority of our OEM products are sold in North America. However, our dominance in the North American market translates into a world market share of around 20%, making STRATTEC the largest producer of automotive locks and keys in the world. While a modest amount of exporting is done to automotive assembly plants in Europe and South America, we are in the process of expanding our presence in these markets and elsewhere through our alliance with WiTTE-Velbert Gmbh.