Donnelly Corporation Announces Global Restructuring, Cost Reduction Plan

    HOLLAND, Mich., July 9 Consistent with broad structural
changes announced earlier this year, Donnelly Corporation today
announced plans to reduce overhead costs in all areas.  The restructuring plan
will help the company continue its focus on products and customers by
consolidating business processes and management structures.  These moves will
strengthen Donnelly's competitive position and enhance shareholder value,
positioning the company for strong growth in sales and earnings when the
current slowdown ends.  Actions in North America include reducing employment
by about 100 overhead positions, but no production positions will be
eliminated.  Actions this year in Europe also include reductions that will
affect 50 manufacturing overhead jobs, plus outsourcing of some components, an
action that is expected to affect approximately 75 production jobs.
    "Donnelly has a strong tradition of growth and change in response to
changes in the marketplace," said Dwane Baumgardner, chief executive officer.
"I expect that growth to continue in the future, and that Donnelly will emerge
stronger and more prosperous in both the short-term and the long-term."
    The restructuring will result in a one-time charge estimated at $3.0
million at net income, which will be reflected in third-quarter results.
    Donnelly is a technology-driven, customer-focused automotive supplier that
has been based in Holland, Michigan, since 1905.  Through its various product
lines, Donnelly serves every major automotive manufacturer in the world.  The
company has more than 6,000 employees in 14 countries worldwide including
joint ventures.  Donnelly has been named by the Society of Automotive
Engineers as a model company in lean manufacturing practices.  In addition,
Donnelly is nationally recognized as a leader in the application of
participative management principles and systems.  More information on Donnelly
is available at the company's site on the World Wide Web, at http://www.donnelly.com
    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.