Valeo Sells Filtrauto Business

    PARIS--June 25, 2001--Valeo (Paris: FR; OTC: VLEEY) today announced that it has signed a contract to sell 100% of the capital of Filtrauto S.A. to Sogefi S.p.a., a leading Italian automotive filter supplier.
    The agreement provides for a total consideration for the transaction of approximately 100 million euro, including the transfer of debt. Filtrauto became part of Valeo as a result of the acquisition of Labinal's automotive activities in September, 2000. Filtrauto produces and distributes automotive oil, fuel and air filters, a non-core activity within Valeo.
    Sogefi, with sales in 2000 amounting to 674 million euro, is a global manufacturer of automotive filters and flexible suspension components with facilities in Europe, South America, India and China.
    Filtrauto generated sales of 263 million euro in 2000. The company employs approximately 2,500 people, manufacturing and selling its products in ten plants, nine logistics centers and six sales offices in Europe and North and South America. With a complementary product range, Filtrauto and Sogefi together will become one of the top European players in automotive filters and be among the first five worldwide.
    Thierry Morin, Chairman of the Management Board of Valeo, said, "this divestment reflects Valeo's strategy to refocus its resources on core activities with leading market positions. At the same time it provides Filtrauto with a strong strategic partner."
    This transaction is subject to the approval of the European anti-trust authorities.