Valeo to Open New Technical Center in Germany to Focus Engineering Efforts On Future Electronics Systems

    PARIS--Sept. 14, 2001--Valeo (Paris:FR; OTC:VLEEY) announces plans to open a new advanced technical center in Bietigheim, Germany, to enhance its electronics engineering capabilities.
    The technical center, expected to house nearly 400 electronics and mechanical engineers and management staff, forms a key part of the company's strategy to significantly increase future Valeo sales of electrical and electronics thereby meeting the future needs of vehicle manufacturers and motorists.
    Part of an investment of over 50 million euro in Germany, the 6,000 square-meter purpose-built technical center will consolidate Valeo's engineering expertise in advanced electronics systems that include telematic sensors and integrated driver interface development capabilities.
    Earlier this year, the company announced plans to increase sales of electrical and electronics from 55 percent currently to around 70 percent of total group sales over the coming years. The establishment of the new technical center represents an important constituent of this goal.
    Thierry Morin, Chairman of Valeo's Management Board said, "This new technical center contributes to our overall growth plans for the electrical and electronics businesses. Consolidating focused electronics expertise will not only encourage further electronics developments and integration possibilities but will also provide the strengths upon which our future successes will be founded."
    Several key developments are expected to derive substantial benefit from the consolidated and enhanced engineering expertise. A "Lane Departure Warning" group will be set up to focus exclusively on the development and integration of an advanced video-based image processing system that warns the driver in case of an unintentional lane departure. The project is the result of an agreement signed with Iteris, a U.S. software and sensor developer, announced in June this year. Valeo's team of in-house radar development specialists will also be based in the new center. Additionally, Valeo's top column module with an integrated steering angle sensor will benefit from the mechatronics systems integration expertise in the cross-project culture.
    Many systems developed at the center will also support the company's "Seeing and Being Seen" Domain, one of several Valeo Domains displayed at the 59th IAA International Motor Show in Frankfurt.
    The co-location of multi-disciplinary electronics engineers will further improve communication and cross-project synergy utilization. All departments and projects in the new building will have immediately available a pool of expert resources in advanced electronics, including radar, ultrasonic, video sensing and advanced switches design. This unique environment will allow customers to benefit from full-service electronics systems research and development.
    The technical center will be located adjacent to Valeo's existing site in Bietigheim that houses an Electronics Competence Center with advanced test facilities and design support. The engineers and general management, including sales and quality, are expected to transfer next year when the new technical center is scheduled to open. At least 80 engineering recruits are planned for the future, many of whom will join Valeo from some of the many universities with which Valeo has longstanding collaborations. Valeo will shortly be announcing plans to finance a professorial chair for a new university degree in Germany focusing on automotive systems engineering. Valeo is exhibiting at the IAA International Motor Show on stand E02 in Hall 8.
    Illustrations can be downloaded from the Valeo Internet site, www.valeo.com, which features a special section on Valeo's participation in the IAA International Motor Show 2001.
    Valeo is an independent industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks and ranks among the world's top automotive suppliers. The Group has 162 plants, 49 R&D centers, 10 distribution centers and employs 78,000 people in 25 countries worldwide.

    For more information on the Group and its businesses, please consult our Web site: www.valeo.com.