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LucasVarity to Sell Its Heavy Vehicle Braking Systems Business

5 August 1998

LucasVarity to Sell Its Heavy Vehicle Braking Systems Business

    LONDON, Aug. 5 -- LucasVarity plc today announced its
intention to sell its Heavy Vehicle Braking Systems (HVBS) business.
    Victor Rice, Chief Executive of LucasVarity, said, "As stated earlier this
year, our strategy is to secure and develop leadership positions within the
automotive and aerospace sectors in those areas which enable us to exploit our
core competencies and which offer attractive growth opportunities.  We have
concluded that our Heavy Vehicle Braking Systems division cannot alone sustain
a leadership position in a sector that is undergoing rapid consolidation.  We
have, therefore, decided to sell our Heavy Vehicle Braking business. Recently,
we have received strong expressions of interest in this business from a number
of third parties.  We would expect to reach agreement on a sale during this
year."
    Heavy Vehicle Braking Systems, which is headquartered in Dayton, Ohio, had
sales of approximately 170 million pounds sterling in the year ended
31 January 1998.
    LucasVarity plc designs, manufactures and supplies advanced technology
systems, products and services in the world's automotive and aerospace
industries.