Williams Controls (WMCO)

Competition

     We believe we are the worldwide market leader for electronic throttle control systems for heavy trucks, transit busses and off-road vehicles. We believe we are the largest domestic producer in the market. We have a much smaller portion of the European and Asian markets. The markets for our products are highly competitive, with many of our competitors having substantial financial resources and significant technological capabilities. Our competitive position varies among our product lines.

     The major competitors for our electronic throttle controls include AB Eletronik GmbH, Kongsberg Gruppen, ASA., Siemens VDO Automotive AG, Felsted Products, LLC, Hella KGaA Hueck & Co., Heinrich Kubler AG (KSR), and Comesys, Ltd. Other companies, including Dura Automotive Systems, Inc. and CTS Corporation compete in the passenger car and light truck market and may attempt to compete in the heavy truck and transit bus market in the future.

     We also manufacture pneumatic control systems for the diesel heavy truck, transit bus and off-road vehicles markets. The market for these pneumatic control systems is highly competitive and characterized by many competitors. Many of the customers for these products are the same customers as for our heavy truck and transit bus electronic throttle control systems.

     When choosing among competing electronic throttle control systems, we believe purchasers of these systems focus on price, quality, value added engineering and reputation. In addition, we believe attainment of the TS 16949 quality certification and the ISO 14001 Environmental Management System certification are critical to qualifying as a supplier. Our two manufacturing facilities in Portland and Suzhou have attained the TS 16949 and ISO 14001 certifications and our entire product line is produced using these standards.

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Competition

     We
believe we are the worldwide market leader for electronic throttle control
systems for heavy trucks, transit busses and off-road vehicles. We believe we
are the largest domestic producer in the market. We have a much smaller portion
of the European and Asian markets. The markets for our products are highly
competitive, with many of our competitors having substantial financial resources
and significant technological capabilities. Our competitive position varies
among our product lines.

     The major
competitors for our electronic throttle controls include AB Eletronik GmbH,
Kongsberg Gruppen, ASA., Siemens VDO Automotive AG, Felsted Products, LLC, Hella
KGaA Hueck & Co., Heinrich Kubler AG (KSR), and Comesys, Ltd. Other
companies, including Dura Automotive Systems, Inc. and CTS Corporation compete
in the passenger car and light truck market and may attempt to compete in the
heavy truck and transit bus market in the future.

     We also
manufacture pneumatic control systems for the diesel heavy truck, transit bus
and off-road vehicles markets. The market for these pneumatic control systems is
highly competitive and characterized by many competitors. Many of the customers
for these products are the same customers as for our heavy truck and transit bus
electronic throttle control systems.

     When
choosing among competing electronic throttle control systems, we believe
purchasers of these systems focus on price, quality, value added engineering and
reputation. In addition, we believe attainment of the TS 16949 quality
certification and the ISO 14001 Environmental Management System certification
are critical to qualifying as a supplier. Our two manufacturing facilities in
Portland and Suzhou have attained the TS 16949 and ISO 14001 certifications and
our entire product line is produced using these standards.

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