Valeo Announces the Ratification of an Agreement Concerning the Closure of its Rochester Facility

PARIS, France, September 26 -- Valeo (OTC: VLEEY) today announced that its subsidiary Valeo Electrical Systems Inc. has reached an agreement with the Union IUE-CWA Local 509, which has been ratified by members in a vote on Sunday 25 September.

This agreement concerns the attrition program for hourly employees up until 31 July 2008, the date at which the site will close. The closure plan for the site is self-funded: the cost of the headcount reduction and other related closure costs being offset by changes in the health care plan.

The planned closure of the Rochester facility will contribute significantly to the competitiveness of the Wiper Systems Branch in North America.

Valeo is the global leader in Wiper Systems with 13 production facilities and 7 R&D centres in 8 countries around the world.

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 130 plants, 68 R&D centres, 9 distribution centres and employs 72,100 people in 28 countries worldwide.