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Lear to Expand Production in Russia

2 July 1998

Lear to Expand Production in Russia

    NIZHNY NOVGOROD, Russia, July 2 -- Officials of Lear
Corporation and Nizhegorod Motors, the joint venture between Fiat
and Gaz, signed an agreement here today which will lead Lear to increase
production of seats and other interior components in Russia to support Fiat
production in this country.
    Lear assumed responsibility for seat production at the Gaz complex in
early June and began seat production for Gaz's Volga models.  Annual Volga
volumes are expected to reach 125,000 units.
    Later this year, Lear will begin production of seats for Nizhegorod Motors
here as well.  Models to be produced include the Fiat Palio, Siena and Marea.
Production volumes are forecast to grow to more than 100,000 units in the
coming years.  In order to meet the forecast volumes, Lear will make
additional investments in plant and equipment in the Nizhny Novgorod region.
    Initial production will begin in October, 1998.
    A Fortune 500 Company, Lear Corporation is one of the world's largest
automotive suppliers, with 1997 sales revenues of $7.3 billion.  The company's
world-class products are designed, engineered and manufactured by more than
54,000 employees in over 190 facilities located in 27 countries.  Information
about Lear and its products is available on the Internet at
http://www.lear.com.