Valeo Launches its Security Systems Activity in China

PARIS, France, May 23, 2005 -- Valeo today announced the start of operations of a new production facility in Wuxi (100% Valeo owned), in line with its strategy to bring all of its product lines and technologies to the Chinese market.

This new 4,500 square metre facility, 120 km west of Shanghai, will produce security systems (remote controls, immobilisers, locksets, keyless entry systems, steering column locks, latches and handles) for all car manufacturers present in Asia.

A local research & development team based in the plant and working with the Valeo Security Systems competency centres in Europe will develop specific products for these customers.

Start of production is planned in September 2005 and the plant will employ more than 500 people by the end of 2008.

"This new investment reaffirms Valeo's commitment to China's automotive industry. China is a key market for the Group's future growth. With this tenth production facility, Valeo will be in a better position to serve both Chinese and global automakers," said Thierry Morin, Valeo Chairman & CEO.

The creation of this tenth local production facility reinforces the Group's eleven-year presence in China, where Valeo already employs 2,500 people.

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 132 plants, 66 R&D centres, 9 distribution centres and employs 69,500 people in 27 countries worldwide.

Alexandre Telinge, +33-1-40-55-20-74, alexandre.telinge@valeo.com. Sophie Porte, +33-1-40-55-37-68, sophie.porte@valeo.com