Valeo Wins Two EPCOS/SIA Electronics Innovation Prizes

    PARIS--June 21, 2002--Valeo (Paris:FR; OTC:VLEEY) today announced that its innovative electrically powered trunk closure system has won the prestigious EPCOS/SIA Automotive Electronics Innovation Award in the 'life on board, comfort and cockpit' category.
    Jointly with Renault, Valeo also won the top prize in the powertrain category for an alternator-based "range extender" for Renault's Kangoo electric vehicle. The trophies were presented to Valeo's advanced development team at the annual reception of the SIA, the French Society of Automotive Engineers, held yesterday in Paris, France.
    A panel of motor industry journalists, vehicle manufacturers and technical specialists evaluated entries for the EPCOS/SIA annual awards. The EPCOS awards recognize the high degree of creativity and innovation in the design, manufacture and application of automotive electronics systems in production this year.
    Thierry Morin, Chairman of Valeo's Management Board, who attended the award ceremony, said, "I am honored to receive these prestigious awards since they highlight the creativity and inspiration of our engineering teams, the driving force which enables us to deliver integrated electronics solutions to meet demanding customer needs."
    "Electrically powered closure systems represent a key Valeo competence in a sector that is anticipated to experience significant growth in the years to come. Automatic operation of trunks and liftgates meets consumer demand for easy vehicle access and will find applications on a wide range of vehicle platforms," he added.
    Responding to the needs of vehicle users for quicker and more convenient vehicle access, Valeo's trunk closure system is expected to be the first in Europe to be electrically driven when it goes into production later this year. Compared with current automatic trunk opening and closure systems which rely on electro-hydraulics, Valeo's system is more cost-effective. The Valeo system will debut first on two DaimlerChrysler vehicles.
    "Valeo has long been known for both its commercial approach and its ability to offer products that perfectly match consumer needs. The product that won the prize today is one that all drivers dream about having in their car one day," said Ekkehard Kramer, President, EPCOS, France.
    The trunk system is operated automatically either by using the remote control or the push buttons located inside the trunk handle or the trunk itself. Valeo studies have shown that the system is especially appreciated by drivers who are below average height and also by the growing segment of older consumers who appreciate the virtually effortless opening and closing operation. The system features an innovative speed and position control function that allows vehicle manufacturers to adjust the operation of the trunk closure system to meet their individual requirements.
    The trunk closure system consists of an electro-mechanical drive unit, a power striker and an electrical latch. The proprietary electronics is contained in the electro-mechanical drive unit which is located in the left side of the trunk body. The electro-mechanical drive controls four main functions: trunk opening and closing, speed, position and obstacle detection for safety.
    The system uses the internal synergy of Valeo Security Systems by integrating products such as control electronics and trunk latches, developed at Valeo sites in Creteil and Abbeville, France. The mechanical part of the system was developed at the company's R&D center in Erdweg, Germany. Engineers at this center have in-depth expertise in the design of powered closure systems for both trunks and liftgates.
    The range extender jointly developed with Renault for the Kangoo electric vehicle consists of two compact, high voltage, high power alternators. The range extender automatically recharges the vehicle batteries, thus doubling its autonomy. Drivers of the Kangoo therefore need not worry about the level of electricity available to drive the car.

    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, please consult our website: www.valeo.com.