Valeo Reports That Its North American Subsidiary, VESI, has Filed for Voluntary Reorganization Under Chapter 11 of U.S. Law

    PARIS--Dec. 14, 2001--Valeo (Paris: FR; OTC: VLEEY) announced today that Valeo Electrical Systems, Inc. (VESI) has filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code.
    The Chapter 11 filing is limited to the operations of VESI -- its manufacturing facility in Rochester, New York and its associated sales and administrative offices in New York City and Auburn Hills, Michigan. This filing does not involve any other Valeo company in the U.S. or elsewhere.
    In its own separate announcement, VESI indicated that in the face of an anticipated operating loss of $70 million in 2001, it has filed for Chapter 11 to protect its operations and provide a framework for restructuring.
    VESI noted that under the protection of Chapter 11, it will continue to operate and serve the needs of its customers, meet employee payrolls, and establish priority of payment to suppliers for materials delivered and services rendered following the filing of the petitions. VESI believes it can have a solid future in Rochester -- provided it gets the economics right.
    Valeo acquired the VESI operations from ITT in 1998. Since that time, the operation has functioned as an independent entity manufacturing automotive wiper and airflow systems, motors and other components in North America for sale to car and truck manufacturers, component suppliers and other customers.
    Detailed information about the VESI Chapter 11 filing can be found at www.valeoelectricalsystems.com.
    Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 144 plants, 52 R&D centers, 10 distribution centers and employs nearly 72,000 people in 25 countries worldwide.
    For more information on the Group and its businesses, consult our website: www.valeo.com.