Valeo Research Program for Emissions Reduction to Receive Significant Funding From French Industrial Innovation Agency

PARIS, March 5 -- Valeo (OTC: VLEEY) today announced that the French Industrial Innovation Agency (Agence de l'Innovation Industrielle, AII) has agreed to provide 61 million euros in funding for its research program LOwCO2MOTION(TM), which aims to improve vehicle engine efficiency and contribute to reducing CO2 emissions.

Thierry Morin, Valeo Chairman & CEO, commented: "This funding recognizes the value of the work that Valeo engineers have been undertaking in this field for several years and will allow us to offer the market new solutions that can provide up to 30% fuel savings with a significant reduction in CO2 and pollutant emissions."

The program focuses on two major innovations. The first is the camless system, in which the camshaft in engines is replaced by electromagnetic actuators that operate each valve independently. By controlling residual gases, minimizing pumping losses and deactivating cylinders and valves, this technology reduces fuel consumption and pollutant emissions by 20% for gasoline engines. It also provides enhanced performance and driving comfort due to an increase in low-end engine torque. A version for diesel engines will also be developed.

The second major innovation, totally compatible with the camless system, is a next-generation mild hybrid based on Valeo's StARS+X technology. In addition to the Start-Stop function which cuts off the engine when the vehicle is at a standstill, this system features a regenerative braking function, where energy generated during braking is recovered. The program includes the development of a new high-efficiency, high-power alternator technology as well as ultracapacitors, enabling a 10 to 15 % reduction in fuel consumption. These innovations will be enabled by new mechatronic technologies which are also part of the program

The LOwCO2MOTION(TM) program represents a total investment of 212 million euros over a four-year period. The AII funding is subject to the approval of the European Commission.

Valeo is an independent industrial group dedicated to the design, production and sale of components, integrated systems and modules for cars and trucks. It is one of the world's leading automotive suppliers. The Group has 129 production sites, 68 R&D centers, 9 distribution platforms, and employs 69,800 people in 29 countries worldwide.

For all additional information, please contact:

Kate Philipps, Group Communications Director, Tel: +33-1-40-55-20-65

Remy Dumoulin, Investor Relations Director, Tel: +33-1-40-55-29-30

For all additional information, please contact: Kate Philipps, Group Communications Director, Tel: +33-1-40-55-20-65; Remy Dumoulin, Investor Relations Director, Tel: +33-1-40-55-29-30