Valeo Announces a Plan to Form a Partnership With World-Class Electronics Manufacturing Company Jabil

    PARIS--March 25, 2002--Valeo (Paris: FR; OTC: VLEEY) today announced a plan to create a partnership with Jabil for printed circuit board manufacturing. This is a further step in the Group's strategy to become a leader in the design and development of electronics products and systems.
    Within the partnership, Valeo will have a three-year supply agreement with Jabil for a wide range of printed circuit boards, giving Valeo access to products with a world-class level of competitiveness and service. Based on 2001 volumes, the activity concerned represents around 350 million euros.
    Within this partnership it is also planned that:

--	Valeo Electronique will transfer its Meung-sur-Loire, France, facility (750 people) to Jabil. The employment contracts of all the personnel concerned will be taken over by Jabil, who intends to establish Meung-sur-Loire as its center of excellence for all automotive applications in Europe through bringing new expertise to the facility.
--	Valeo Schalter und Sensoren GmbH will transfer to Jabil the printed circuit manufacturing part (200 people) of its Wemding, Germany, facility. The employment contracts of all the personnel concerned will be taken over by Jabil.
--	Valeo Switches & Detection Systems Inc. will transfer production from its Fort Worth, Texas, USA, facility (100 people) to the Jabil facility in Chihuahua, Mexico, which will result in the closing of the Fort Worth facility.
--	Valeo Electrical Systems Inc. (VESI) will transfer the printed circuit manufacturing part of its Juarez, Mexico, facility to the Jabil facility in Chihuahua, subject to court approval as part of its Chapter 11 restructuring.

    This project has been submitted for consultation to the European Works Council, which will meet on April 4, and will thereafter be discussed with local workers representatives.
    Jabil is one of the world's leading Electronic Manufacturing service companies, employing 18,000 people in 24 sites globally and with 20 years experience in the automotive industry. Jabil supplies most leading global electronics companies such as Cisco, Hewlett Packard, Dell, Compaq and Nokia.
    Valeo's 850 electronics engineers will be totally focused on the design and development of electronic systems allowing the Group to reinforce its technology offer to its customers.
    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 70,000 people in 25 countries worldwide (end 2001).
    For more information on the Group and its businesses, consult our website: www.valeo.com