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LucasVarity Reports Effect of General Motors Strike on Second Quarter

4 August 1998

LucasVarity Reports Effect of General Motors Strike on Second Quarter

    LONDON, Aug. 4 -- LucasVarity plc (London: LVA, NYSE: LVA)
reports today that the work stoppages at General Motors, one of the Company's
largest customers, will reduce operating income and earnings per ordinary
share by approximately 11 million pounds sterling and 0.5p, respectively
($0.08 per ADS) in the 1998 second quarter.
    This adverse effect on the Braking Systems segment has been partially
offset by generally favourable trading conditions elsewhere within the Group.
Consequently, the Company expects to report second quarter sales and profits
from continuing operations ahead of the prior year's second quarter results.
    LucasVarity will report its second quarter results for the period ended
31 July 1998 on 9 September 1998.
    LucasVarity plc designs, manufactures and supplies advanced technology
systems products and services in the world's automotive and aerospace
industries.