Donnelly Announces Acquisition of Donnelly Electronics Inc.

    HOLLAND, Mich., Jan. 22 Holland-based Donnelly Corporation
announced today that it will acquire all of the remaining stock of
Donnelly Electronics Inc. of Holly, Michigan.

    The combination of the two companies represents an extraordinary fit for
both companies and improves their leadership position in several growth
businesses.  As a leading automotive supplier, Donnelly Corporation has been
integrating electronics into its products in both interior and exterior
mirrors and in door handles and window systems.  In 2000, Donnelly took an
innovative leap into electronics with the development of SmartRelease(TM), the
company's automatic trunk release system.  Most recently, Donnelly introduced
the VideoMirror(TM) with BabyVue(TM) Camera Vision system and ReversAid(TM).

    "This transaction represents the next step in implementing our long-term
strategy to grow as a major player in the automotive electronics market," said
Dwane Baumgardner, Donnelly chairman and chief executive officer.  "By fully
integrating the design and development capabilities of Donnelly Corporation
with the process engineering and know-how of Donnelly Electronics, we will be
able to create a highly synergistic organization.  This will consolidate the
position we have already created in electronics systems."
    The transaction is scheduled to be finalized in February, after which
Donnelly Electronics will be a wholly owned subsidiary of Donnelly
Corporation.

    Taylor will continue to oversee the management of Donnelly Electronics,
with manufacturing locations in Holly, Michigan and Longford, Ireland.  The
Holly facility employs 167 associates and Longford close to 50 employees.  The
companies are expected to be integrated in the first quarter of 2001.