Press Release- FTE Automotive

HG Capital Trust PLC
13 September 2004


The following is the text of a press release issued by HgCapital, manager of the
investment portfolio of HgCapital Trust plc.  The trust participates in all of
HgCapital's investments.

HgCapital recapitalises FTE Automotive for €35 million profit

80% profit increase for FTE since MBO

London, 13 September 2004.   HgCapital, a leading sector-focused European
private equity investor, has completed a €225 million recapitalisation of FTE
Automotive GmbH, following its management buy-out in December 2002.  This year
FTE is forecasting EBITDA of €58 million compared with €33 million at the time
of the MBO.  The refinancing has allowed HgCapital to return to its investors
€91 million in cash, or 1.7 times cost, whilst at the same time increasing its
shareholding.  The new debt facilities were fully underwritten by Barclays
Capital.

HgCapital Trust plc, an investment trust that participates in all of HgCapital's
investments, has realised a total of £11.5 million in cash (£4.4 million of
which is due in early October) from a £6.8 million investment.  Its residual
investment is valued at £2.6 million, using the same valuation basis as at June
2004.  As a result of the realisation the net asset value of HgCapital Trust has
increased by £2.2 million (9p a share).

FTE, based in Ebern, Germany, is the world-leading manufacturer of hydraulic
actuation components for clutch and brake systems for passenger cars.  HgCapital
acquired FTE from its US parent in December 2002 having identified its potential
for enhanced profitability through a greater focus on the core clutch business
and a more international outlook.  The company already had unrivalled product
quality and an excellent reputation among the major car manufacturers. A new,
highly-experienced management team was put in place, led by Chairman, Dr Franz
Scherer, and CEO, Wolfgang Bruns, formerly a senior executive with Magna
Corporation.

In December 2003 FTE acquired its main US clutch actuation competitor,
Automotive Products (USA) Inc., thereby increasing its global presence and
consolidating its market position.  In 2004 FTE acquired a small Slovakian
business and entered into joint ventures in Brazil and China, giving access to
low-cost manufacture and direct exposure to the fastest-growing passenger car
markets of eastern Europe, South America and China.

Trevor Bayley of HgCapital in Frankfurt commented: 'The successful
recapitalisation of FTE is a good example of the value that can be created
through a hands-on, focused investment style. Since the original acquisition one
and a half years ago, HgCapital has re-crafted the strategy and hired a new
management team, resulting in a profit improvement of nearly 80%. We are pleased
to have returned cash to our investors ahead of our original plans and look
forward to working with management to take the company to the next level.'


13 September 2004


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