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LucasVarity Divests Three Electrical Businesses

23 January 1998

LucasVarity Divests Three Electrical Businesses

    LONDON, Jan. 23 -- LucasVarity (London: LVA; NYSE: LVA) today
announced that it had sold its heavy duty starter and alternator manufacturing
business, based in London, UK, and its light duty starter and alternator
businesses in South Africa and Argentina, to Prestolite Electric Inc. (PEI) of
Ann Arbor, Michigan, for an initial consideration of 25.4 million British
pounds sterling (pounds), subject to a final closing balance sheet adjustment.
In addition, up to 11.4 million pounds will be payable on a contingent basis.
    Under the terms of the sale, PEI will acquire the assets of Lucas Heavy
Duty Products, the share capital of Lucas South Africa and shares in Lucas
Indiel, Argentina.
    In the year ended 31 January 1997, sales of the three businesses totaled
80 million pounds and their profit before interest and taxes was 3 million
pounds.  The businesses have assets of 38 million pounds, as at 31 January
1997.
    The proceeds from the sale will be used to strengthen LucasVarity's
leadership positions in the markets it serves within the aerospace and
automotive industries.
    LucasVarity plc designs, manufactures and supplies advanced technology
systems, products and services in the world's automotive and aerospace
industries.
    Prestolite Electric Incorporated manufactures alternators, starter motors,
direct current motors, battery chargers and switching devices.  These are
supplied under the Prestolite, Leece-Neville and Butec brand names for
original equipment and aftermarket application on a variety of vehicles and
industrial applications.

SOURCE  LucasVarity