Donnelly Reorganizes to Support Strategic Vision for the Next Decade

    HOLLAND, Mich., Feb. 5 Donnelly Corporation
has announced a new corporate organization structure that it believes will
help power growth in sales and earnings and achieve its vision as a
technology-driven, customer-focused global organization.
    Effective immediately, Donnelly will focus its worldwide business into two
main operating groups: Electronic Systems and Exterior Systems.
    "Our business is rapidly becoming electronic in nature, and is facing
tremendous product growth opportunities in electronic systems that will help
Donnelly grow in the future," said Dwane Baumgardner, chairman and chief
executive officer.  At the same time, the demands for improved vehicular
design, quality, and fuel efficiency are driving change in levels of
performance, quality and innovation required for the exterior system business,
which also provide exciting possibilities for growth.  "These organizational
changes will help position us to achieve strong growth and move us with
confidence into this period of major change and opportunity.  I believe these
changes will result in taking the company to even higher levels of
profitability and shareholder value."
    To provide leadership under the new structure, Donn Viola has been named
chief operating officer of Donnelly Corporation.  In this role, Viola will
have responsibility for Donnelly's operations worldwide.  He has more than 30
years experience in the auto industry, including positions held with Mack
Trucks, Inc., Masco Industries and Volkswagen.  Viola has been serving as
Donnelly's chief operating officer for North America since 1996.
    Scott Reed has been appointed president of the newly formed Electronic
Systems Group.  This group will include interior mirrors, which are quickly
becoming electronics-dominated products incorporating telematics and camera
vision systems.  Reed will be responsible for product and manufacturing
strategy development and implementation.  Also included in the Electronic
Systems Group will be the wholly owned subsidiary Information Products, which
manufactures touch screens for the information display industry and Donnelly
Electronics Inc., in which Donnelly is increasing its ownership to 100%.
    Reed joined Donnelly in 1998 as chief financial officer.  Previously he
spent 15 years with the Chrysler Corporation.  Reed will continue as
Donnelly's chief financial officer for an interim period.
    Russell B. Scaffede has been appointed president of the Exterior Systems
Group.  This group's activities will include exterior mirrors, door handles,
and window systems, all of which are associated primarily with the external
portion of the vehicle.  Scaffede will also be responsible for product and
manufacturing strategy development and implementation.
    Scaffede joined Donnelly in 1995 as vice president of manufacturing, and
became senior vice president of global manufacturing operations in 1998.  He
is a recipient of the Shingo Prize for Excellence in Manufacturing and has
implemented the Donnelly Production System at Donnelly locations around
the world.  Previously, he was a vice president at Toyota Motor Corporation.
    Donnelly is a technology-driven, customer-focused, growth-oriented global
supplier of electronic systems for the automotive and information display
industries and of automotive exterior systems.  The company has been based in
Holland, Michigan since 1905, and today has approximately 6,100 employees in
12 countries worldwide.  Donnelly has been named by the Society of Automotive
Engineers as a model company in lean manufacturing practices, and was
recognized by Automotive Industries magazine as one of the best of the best
suppliers of interiors and electronic systems.
    This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.  Investors are
cautioned that any current expectations of the Company, or its management, are
not guarantees of future performance and involve risk and uncertainties.
Actual results may differ materially from those in forward-looking statements
as a result of various factors including, but not limited to (a) general
economic and currency conditions in the markets in which the Company operates;
(b) fluctuation in worldwide or regional automobile and light truck
production; (c) changes in practices and/or policies of the Company's
significant customers; (d) human resource constraints which could impede
changes in Europe; and (e) other risks and uncertainties.