Statement from the Chairman of Valeo's Board of Directors

PARIS, FRANCE, March 26, 2009: Pascal Colombani, Chairman of Valeo’s Board of Directors, declared: “At its meeting of 20 March 2009, the Board of Directors of Valeo deliberated on Thierry Morin’s termination compensation, taking into account his 20 years with Valeo, including 8 years as Chairman & CEO, his contribution to the development of the Group and his proactiveness in time of crisis.

The Board considered that the emergency plan implemented in the fourth quarter was absolutely necessary to place Valeo in the best possible position to face the crisis. It was thus decided, unanimously, and despite the strategic differences noted with Thierry Morin, not to take into account the exceptional elements related to the emergency plan implemented in the fourth quarter, without which the Group’s net income would have been positive in 2008.

This compensation, which is in line with the AFEP-MEDEF recommendations, will be submitted to shareholders for approval at the next Annual General Meeting. Moreover, the Board points out that, contrary to what has been indicated, Valeo has not received aid from the French State.”