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LucasVarity Secures Major GM Contract

31 March 1998

LucasVarity Secures Major Contract to Supply Advanced Braking Systems For GM Passenger Cars

    LIVONIA, Mich., March 31 -- LucasVarity plc today
announced that its Light Vehicle Braking Systems division has secured a major
contract to supply General Motors with advanced control systems for
certain future GM passenger cars.
    The contract includes anti-lock braking systems (ABS), traction control
and vehicle stability control systems for cars to be sold in global markets.
    "This is another very important achievement in our growth strategy," said
Victor Rice, Chief Executive of LucasVarity.  "The contract is not only
significant in value terms, it also confirms LucasVarity's leadership position
in the development and application of next generation braking systems.  We
expect these systems, which integrate a vehicle's brakes with other safety
critical features, such as traction and stability control, to become widely
applied on future vehicle platforms."
    Steve Lunn, Managing Director of Light Vehicle Braking Systems, said,
"This contract award further solidifies our excellent relationship with the
world's largest vehicle manufacturer.  We already supply ABS for virtually all
of GM's light trucks and sport utility vehicles and will shortly commence
production at the Heerlen plant in the Netherlands to supply fourth generation
ABS to debut on the 1999 model year Opel Vectras."
    Steve Lunn added, "This award is testimony to our technological and
engineering strengths and total commitment to product quality.  It also
reflects our ability to provide vehicle manufacturers with system solutions on
a global basis.  In addition to ABS and traction and vehicle stability control
systems, we are developing such leading edge products as brake assist, electro
hydraulic braking and brake by wire and anticipate significant global demand
for these products in the future."
    Headquartered in Livonia, Michigan, Light Vehicle Braking Systems supplies
braking systems and components to most of the world's major vehicle
manufacturers.  It is the world's leading producer of two-wheel ABS and market
leader in four-wheel ABS in North America.
    LucasVarity plc designs, manufactures and supplies advanced technology
systems, products and services in the world's automotive and aerospace
industries.

SOURCE  LucasVarity plc