Valeo Establishes Alliance With International Rectifier to Further Enhance Its Electronics Capability

    EL SEGUNDO, Calif. & PARIS, France--Feb. 12, 2002 --Valeo and International Rectifier today announced that they have entered into a long-term strategic alliance to develop advanced power electronics systems for leading-edge automotive applications.
    Within this alliance, Valeo and the Electronic Motion Systems unit of International Rectifier (IR) will jointly develop and produce proprietary system solutions. The jointly-developed power modules, which combine Valeo's strength in electrical systems and IR's power switching expertise, will target high-growth applications in automotive electronics.
    The power modules will significantly enhance many of Valeo's new and advanced electronics applications, enabling higher power at higher efficiency with a smaller package size. Vehicle manufacturers will benefit from space savings, easier assembly, and design flexibility, as well as new functionalities that contribute to fuel economy.
    Thierry Morin, Chairman of Valeo's Management Board, commented, "Signing this agreement with IR is an important milestone in our strategy to grow our electronics and electrical businesses further. IR has a strong track record in power management which, when combined with our automotive electronics expertise, will offer vehicle manufacturers enhanced power electronics solutions."
    Alex Lidow, Chief Executive Officer of IR, noted, "We are delighted to be working with Valeo on a number of advanced automotive electronics systems that are revolutionizing the way power is managed in vehicles. Their expertise and excellent relationships with leading automakers around the world extend IR's global reach in one of our key target market sectors."
    The power modules, which incorporate dedicated silicon devices, will be embedded into high power electronic control units, and are first planned to be integrated into Valeo's reversible starter alternator and related energy management systems, such as its DC/DC converter. Valeo's future intelligent engine cooling and 42 Volt systems, including the integrated starter-alternator and heating ventilation and air conditioning system (HVAC), could also benefit from power module integration.
    Valeo will produce the full power electronics systems and deliver directly to its worldwide customers. U.S.-based International Rectifier plans to produce the power modules developed under the alliance in its state-of-the-art manufacturing facility in Wales, UK, with Valeo providing additional manufacturing capacity as needed.
    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 143 plants, 53 R&D centers, 10 distribution centers, and employs nearly 75,000 people in 25 countries worldwide (end 2001).
    International Rectifier is a world leader in power management technology. Its analog ICs, advanced-circuit devices, power systems, and components improve functionality, speed, compactness, and portability in information technology and other end products. The company's Electronic Motion Systems unit was organized in 1999 to address automotive and industrial demand for integrated power systems in next-generation vehicles and products. IR serves market leaders around the world, and more than half its revenue comes from outside the United States.

    Note to editors: International Rectifier and Valeo are each issuing this news release simultaneously.