Würzburg, October 12, 2007

The Audi S4, which will be launched in fall 2008, will be the first Audi with a new type of rear differential that distributes power flexibly to the rear wheels. This sports differential is designed to make the S4 even more agile.

The sports differential supplied by Magna Powertrain, which weighs almost 20 kilograms, will be offered as an optional extra, according to company sources in the industry magazine "Automobil Industrie". It is later planned to be used in the S5 Coupé and the upcoming Q5 SUV, among others.

BMW will be offering a similar system developed by ZF in the X5 from mid-2008.

Audi will switch from the current 4.2-liter V8 to a supercharged V6 engine in the S4, an Audi engineer confirmed to "Automobil Industrie". According to Henner Lehne from the consultancy firm CSM Worldwide, this will be a 3.0-liter V6 with a supercharger. A combination of supercharger and turbo is also conceivable, as is the case with Volkswagen's Twincharger engine.

The Audi S4 will round off the top end of the newly launched A4 model range from fall 2008. An even more powerful RS4 will be launched later.

When publishing, please cite the source "Automobil Industrie".

"Automobil Industrie" is a monthly trade magazine published by Vogel Business Media, Würzburg, with a circulation of around 15,000 copies. "Automobil Industrie" is aimed at the managers of car manufacturers, suppliers, equipment suppliers and service providers. The trade magazine has been a must-read in the industry for over 50 years. Daily news from the entire automotive industry is available at www.automobil-industrie.vogel.de and in the regular newsletter.

If you have any questions, please contact

Jens Meiners

"Automotive Industry"

Chief Reporter/Member of the Editorial Board

Vogel Auto Medien GmbH & Co. KG

Max-Planck-Strasse 7/9

97082 Würzburg

Phone: +49 931 418-29 26

Fax: +49 931 418-27 79

Mobile: +49 172-20 13 832

E-mail: jens_meiners@vogel-automedien.de