PRESS RELEASE

Lucas/TAECO Joint Venture Open For Trading

    XIAMEN, South China, Nov. 4 -- LucasVarity, the
global automotive, diesel engine and aerospace products and systems
group, has announced that its Xiamen, South China, repair and overhaul
center is open for trading following the award of airworthiness
approval from the Civil Aviation Administration of China (CAAC).
    The center is the result of a joint venture between Lucas
Aerospace and Asian company, Taikoo Aircraft Engineering Company
(TAECO).  It is believed to be the first Western equipment center open
in China.  The operation will provide repair, overhaul and technical
support services for engine control, flight control and power
generation systems.
    "We have been working for almost two years to establish and equip
this new facility, including putting our technicians through 18 months
of intensive training," said John Harper, Director and General Manager
of Lucas Aerospace's customer support in Asia Pacific.  "The
recognition by the Chinese authorities is the culmination of all the
hard work by the team."
    The center, which received preliminary orders from several Chinese
Airlines prior to the CAAC approval, now looks set to capture an even
greater share of the Asia-Pacific market.  Lucas Aerospace, one of the
first companies to recognize the importance of this market, has joint
ventures and operational facilities throughout the Asia-Pacific
region.
    Lucas Aerospace provides the global aerospace industry with high
integrity systems in flight controls, engine controls, electrical
power generation and management and cargo handling, all backed by a
world-wide customer support operation.

CONTACT: Renate Myles, 703-264-2387 or Juli Ballesteros, 703-264-2347,
both of LucasVarity