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GM Names LucasVarity 'Corporation of the Year'

29 April 1998

LucasVarity Wins GM's Prestigious 'Corporation of the Year' Award

    LONDON, April 29 -- LucasVarity plc (London: LVA; NYSE) today
announced that its Light Vehicle Braking Systems (LVBS) division has won
General Motors' highest award available to its worldwide supplier network, the
GM "Corporation of the Year."
    Harold Kutner, GM's Vice President, Worldwide Purchasing and host of the
awards event, said, "For Corporation of the Year, LVBS was carefully selected
from the 182 of GM's 30,000 suppliers to receive a Supplier of the Year award.
We feel that LVBS epitomises the highest performance relative to quality,
service and price.  In recognition of its outstanding consistent quality and
responsiveness to our needs, we are proud to place it at the top of a very
prestigious group."
    Mr. Kutner noted LVBS' importance to GM as a major braking systems and
components supplier and praised LVBS' achievements.  In particular, LVBS had
established a "tremendous performance record" in product quality.
    Victor Rice, Chief Executive of LucasVarity, said, "We are greatly
honoured to be recognised by our largest customer and the world's largest
automotive manufacturer as being the "best of the best" among its suppliers.
In particular, this recognition is strong evidence that our corporate
commitment to Total Quality is paying exceptional dividends with our
customers."
    Steve Lunn, Managing Director of LVBS said, "All of us at LucasVarity feel
the greatest pride in securing this award.  But we will not be resting on our
laurels.  This honour will provide further impetus to all our efforts to
perform even better; the best is yet to come."
    In addition to LVBS' Corporation of the Year award, LVBS' Freios Varga
unit, South America's largest brakes manufacturer, won a Supplier of the Year
award.  Earlier this month, Varga was honoured by GM during a ceremony in
Brazil with three prestigious awards, including the "Mercosul Quality Award"
for 1997.
    "These awards cap a superb year for us with General Motors," said Steve
Lunn.  "Our antilock brake systems (ABS) equip virtually all of GM's North
American light trucks and sport utility vehicles and we recently were selected
by GM to supply it with advanced control systems for certain future passenger
cars, including ABS, traction control and vehicle stability control systems."
    Headquartered in Livonia, Michigan, Light Vehicle Braking Systems supplies
braking systems and components to virtually every automotive manufacturer in
the world.  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