Quickstep : and Futuris Automotive seat back development

+ASX/Media Release 24 October 2016

• Project for structural automotive seating parts to be completed mid-2017

• Composite manufacturing process development of more than 20,000 parts p.a.

• Volume production program targeted for 2018/2019

Sydney, 24 October 2016 - Quickstep Holdings (ASX:QHL), the manufacturer of advanced carbon fibre composites, today announced that it is collaborating with Futuris Automotive Group to develop a composite front seat back for automotive manufacturers. This project will result in a lighter weight (up to 50% weight saving), fully functional composite seat back part that will be available from mid-2017.

Futuris Automotive is a global seating and interior systems supplier, with operations in the USA, Mexico, China, Thailand and Australia. Futuris is working with a range of customers globally including Ford, General Motors, Chery Automobile, SAIC Motor, Telsa Motors, Faraday Future, Karma Automotive and a number of other automakers.

As the lead in the project, Futuris Automotive is responsible for the seat back design, specifications and testing. Quickstep is providing its advanced composites technologies to manufacture the demonstrator parts, using its patented Qure and RST processes. Excellerate Australia (previously the Cooperative Research Centre for Advanced Automotive Technology) is providing funding to support the project.

Quickstep has commenced trialling materials and processes for the project and has already manufactured a sample of the Futuris-designed seat back structure at its Waurn Ponds facility in Victoria.

David Marino, CEO and Managing Director, said, "This composite seat project will allow Quickstep to demonstrate the production rate and quality of structural automotive parts we can produce for vehicle programs greater than 20,000 parts per annum. This is an extension of the recent developments in our tooling, equipment and materials solutions for our 'next-generation' RapidQure process, offering volume manufacturing systems for the automotive industry."

The global seat structures market is a significant product segment in the automotive sector, currently valued at around US$16 billion p.a., with about 91 million seat frame sets forecast to be manufactured and supplied to vehicle producers globally in CY2016. Lighter weight seat systems offer significant advantages to manufacturers of luxury and performance vehicles, SUVs and electric vehicles and represent an attractive target segment for Quickstep.

-ENDS-

Principal address: 361 Milperra Road Tel: (02) 9774 0300 ASX Code: QHL

Bankstown Airport NSW 2200 Fax: (02) 9771 0256

www.quickstep.com.au Email: info@quickstep.com.au

Quickstep Holdings Limited (ASX: QHL) is an Australian publicly listed company, at the forefront of advanced composites manufacturing and technology development. Quickstep is the largest independent aerospace-grade advanced composite manufacturer in Australia, partnering with some of the world's largest Aerospace/Defence organisations including: Lockheed Martin, Northrop Grumman, BAE Systems and Airbus.

Quickstep operates from state-of-the-art aerospace manufacturing facilities at Bankstown Airport in Sydney, NSW; a newly established production site for automotive parts manufacturing and R&D/ process development centre in Waurn Ponds, Victoria; and a development and customer support operation in Munich, Germany.

Quickstep is an approved supplier for the international F-35 Lightning II Joint Strike Fighter (JSF) program - the largest military aerospace program in the world, valued in excess of US$300 billion worldwide. The company has also been selected by Lockheed Martin as the sole supplier of composite wing flaps for the C-130J "Super Hercules" military transport aircraft.

Quickstep has developed significant capabilities and expertise in the production of aerospace grade, advanced composite components, using both conventional autoclave-based manufacturing and leading out-of-autoclave production technologies (developed in-house and patented).

Automotive activities include contracts with Ford Australia for a carbon fibre air intake duct and the development and supply of a range of composite parts and assemblies for the Thales Hawkei military vehicle.

David Marino - Managing Director Ashley Rambukwella / Robert Williams

Quickstep Holdings Limited Financial & Corporate Relations

Telephone: +61-2 9774 0300 Telephone: +61 2 8264 1004 / 0407 231 282

or +61 2 8264 1003 / 0468 999 369

E: dmarino@quickstep.com.au E: a.rambukwella@fcr.com.au or r.williams@fcr.com.au

or:

Visit www.quickstep.com.au

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