Valeo's Total Investment in Poland Exceeds 100 Million Euros; New Facility Planned

PARIS, March 26 -- Valeo (OTC: VLEEY ; RICS: VLOF.PA ; Bloomberg: FR@FP) today announced its commitment to strengthening its manufacturing presence in low cost countries close to customers with another new facility planned in Poland. The new lighting systems manufacturing plant is the most recent production plant in the country taking the total number of Valeo production facilities there to five when it opens end 2004.

The greenfield facility of over 20,000 square-meters could employ up to 600 people at full capacity. Located in Chrzanow next to the country's largest motorway, the facility is being constructed principally to supply lighting systems for a large-volume contract won by Valeo last year and will also supply a number of other vehicle manufacturers in Europe as well as the aftermarket.

The plant, which is ideally located near the key customers facilities in the region, will be equipped with new manufacturing equipment. With future product development activities planned, the facility will also employ a predominantly Polish management team.

"I am proud to announce investment in another new Valeo facility in Poland. This new plant not only brings the total investment in this country to an excess of 100 million euros within the last three years but clearly demonstrates our continued commitment to Eastern Europe," said Thierry Morin, Chairman of Valeo's Management Board.

"These new plants in Poland will fully implement our 5 Axes methodology which promises customers total quality though a standardized approach to production. Wherever a Valeo plant is located in the world, it uses the same production methods which guarantees the same quality everywhere."

Valeo recently constructed two new facilities in Poland, one in Skawina producing wiper systems and one in Czechowice Dziedzice manufacturing starters and alternators.

In current construction on a greenfield site, the 11,000-square-meter facility in Skawina will open later this year to produce wiper systems for vehicle manufacturers and aftermarket customers. The modern facility located next to Valeo's existing plant producing engine cooling systems to take advantage of synergies, will transfer all production from the company's other wiper systems manufacturing site in Zielonki. At full capacity, this plant can employ around 500 people.

As part of its aftermarket activities, in August 2002 Valeo opened a plant located in Czechowice Dziedzice which manufactures starters and alternators. This plant currently employs around 100 people.

Employing currently around 1700 people in Poland, Valeo opened its first production site in Poland in 1996 and currently has four in operation, two in Czechowice, one producing wiring harnesses and one re-manufacturing starters and alternators described above; one in Zielonki producing wiper systems and one in Skawina manufacturing engine cooling systems, the latter being the largest in both size and turnover. In addition to these, Valeo has one sales centre in Warszawa to support the company's aftermarket activities.

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 140 plants, 54 R&D centres, 9 distribution centres and employs 69,100 people in 25 countries worldwide.