Valeo Takes Majority Stake in its Thailand Joint Ventures

PARIS, June 24 -- Valeo today announced that it has signed an agreement to acquire an additional 35.9% of the capital of the joint ventures Siam Zexel Co., Ltd and Zexel Sales Thailand Co., Ltd. in Thailand to bring its ownership to 74.9 % of the capital and voting rights of these companies.

Valeo is acquiring all the shares held by Tri Petch Isuzu Sales Co., Ltd (10 %) as well as 25.9 % of the shares of Siam Co., Ltd. These two companies are part of the Valeo Climate Control Branch which develops, manufactures and sells systems for heating, ventilation and air conditioning.

This market is expected to grow for all types of vehicle. Carmakers and drivers are increasingly interested by such systems which improve the quality of the air in the vehicle and are energy-efficient.

With this operation, Valeo Climate Control, which is one of the worldwide leaders in this business, is strengthening its presence in Asia.

The transaction is subject to regulatory approvals and will be completed from the third quarter of 2005. Acquired companies will be fully consolidated at the closing date.

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 centers, 9 distribution centers and employs 69,500 people in 27 countries worldwide.

    
    For further information, please contact:
    Kate Philipps, +33-1-40-55-20-65
    Rémy Dumoulin, +33-1-40-55-29-30

www.valeo.com

Kate Philipps, +33-1-40-55-20-65; Rémy Dumoulin, +33-1-40-55-29-30