Raytheon and Valeo Form Valeo Raytheon Systems, Inc. to Develop and Market Automotive Radar Systems

    PARIS--Sept. 27, 2002--Valeo (Paris: FR; OTC: VLEEY) and Raytheon Company have finalized an agreement to create Valeo Raytheon Systems, Inc.
    This new joint venture will develop and market new automotive systems based on advanced sensing technologies, including vehicle blind spot detection, backup assist and collision warning systems.
    The company will employ jointly staffed teams, working on the design, development and marketing of new automotive radar applications. These employees will be assigned to the company from existing Valeo and Raytheon operations and be located both in Europe and North America.
    "I am delighted that the agreement has been finalized to establish this new partnership. It is a further significant step towards achieving our strategy of technology leadership in each of our five Domains. The partnership will draw upon a complementary range of leading edge technologies from the aerospace and automotive industries that will accelerate market introduction. Valeo is the world leader in Ultrasonic Park Assist systems. Using Raytheon's innovative technologies, the new company is well positioned to create exciting new detection systems that will add value for vehicle manufacturers and consumers alike," said Thierry Morin, Chairman of Valeo's Management Board.
    Raytheon's profound radar expertise augments Valeo's own automotive radar development activities based at the company's new Advanced Electronics Center in Bietigheim, Germany, to create a scalable suite of optimized radar sensors. In addition, Valeo Raytheon Systems will benefit from Valeo's wide product and technology offering in the Domain of "Seeing and Being Seen" as well as its automotive marketing and sales experience.
    The first product of this new cooperation will be an innovative Blind Spot Detection system, drawing on Raytheon's unique multi-beam technology to provide a new level of comfort and confidence to drivers.
    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 142 plants, 53 R&D centers, 10 distribution centers and employs nearly 72,000 people in 24 countries worldwide (end June 2002).

    For more information on the Group and its businesses, please consult our website: www.valeo.com