Valeo Announces That Union Members Approved Revisions to Valeo Electrical Systems, Inc. Collective Bargaining Agreement

    PARIS--May 6, 2002--Valeo (Paris: FR; OTC: VLEEY) today announced that members of Local 509 IUE-CWA voted to approve revisions to the Union's collective bargaining agreement with Valeo Electrical Systems, Inc. (VESI) at the Rochester (New York) facility.

    The contract changes include:

-	Instituting multiple attrition programs that provide incentives to cushion employees as they move into retirement or new jobs and that establish a process for reducing the workforce to adequate levels
-	Converting the health care program to a community-based model with substantial reductions in premium costs
-	Restructuring wage packages to contain costs during the contract period.

    The expected cost of these changes is in line with the level of provisions in the Group's 2001 consolidated accounts.
    VESI, which filed for the protection of Chapter 11 in December 2001 to protect its operations in the face of its difficult competitive situation, has been implementing plans to return the Rochester operation to profitability. This new union agreement gives VESI the framework to address labor costs while continuing to work on the other elements of the plan: customer terms, supplier consolidation and operating efficiency.
    In the coming weeks VESI management will finalize a Reorganization Plan that should allow it to emerge from Chapter 11 by 2003.
    VESI manufactures automotive wiper and airflow systems, motors and other components in North America for sale to car and truck manufacturers, component suppliers and other customers. VESI's manufacturing operations are primarily located in a facility in Rochester.

    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 71,500 people in 24 countries worldwide (end March 2002).
    For more information on the Group and its businesses, consult our website: www.valeo.com