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Donnelly Announces Realignment of European Management Team

2 September 1998

Donnelly Announces Realignment of European Management Team
    HOLLAND, Mich., Sept. 1 -- Donnelly Corporation
today announced that four members of the company's senior management team this
week will begin extended assignments in Europe to bring greater speed and
effectiveness to the restructuring and turnaround needed at Donnelly
operations in Germany and Ireland.
    Given the strategic importance of Donnelly's European operations, the
company's senior management team made the decision to move to a group of
senior managers in Europe who could bring about the needed changes more
rapidly.  Included in the team are John Donnelly, Maryam Komejan, Russ
Scaffede and Ron Winowiecki, each of whom will play a key role in the
turnaround.
    John Donnelly will head the team as COO of Donnelly's European operations.
He will move to Germany as an expatriate in a long-term assignment.  John
Donnelly was previously senior vice president of corporate business
development and marketing.  John Donnelly will assume the European
responsibilities previously held by Hans Huber, who will leave the company
immediately.
    Maryam Komejan, senior vice president for corporate administration, will
continue in her current role, with a shift of emphasis to administrative,
human resource, information technology and organizational development issues
in Europe.  It is expected that Komejan will devote considerable time to
Europe over the next several years while continuing to provide a strong focus
on information technology issues globally.
    Russ Scaffede, senior vice president for global manufacturing operations,
will continue in his current position, but will shift his focus to improving
European manufacturing operations through implementation of the Donnelly
Production System (DPS).  With his primary focus on Europe, Scaffede will be
based there over the next several years.
    Ron Winowiecki, corporate controller, will assume overall responsibility
for Donnelly's finance and treasury functions in Europe.  He will move to
Germany as an expatriate for the long-term assignment.
    The decision to strengthen European operations with senior managers from
the U.S. was first announced last May.  Since that time, the company has
carefully evaluated the need for changes in leadership and has conducted
extended planning on how to free the key senior managers involved without
disrupting work in North America.
    "These actions in Europe and the U.S. are a decisive response to critical
problems in Europe that have harmed Donnelly's overall performance over the
past several years," said Dwane Baumgardner, Donnelly chairman and chief
executive officer.  "Together, these steps are expected to speed improvements
in Europe and steer clear of the past mistakes that have delayed our progress
there.  While the challenges faced in Europe are large, the opportunities
there are larger still.  A strong management team in Europe will complement
Donnelly's strong management team in the U.S., and contribute to building a
stronger, more successful Donnelly around the world."
    Donnelly Corporation is an international automotive supplier dedicated to
serving customers around the globe with industry-leading components and
systems in automotive mirrors, windows and interior trim and lighting.
Through its various product lines, Donnelly is a supplier to every major
automotive manufacturer in the world.  The company has been based in Holland,
Michigan since 1905, and today has approximately 5,000 employees in eleven
countries worldwide.  Donnelly is recognized as a leader in the application of
participative management, and has been named to Fortune magazine's list of the
"100 Best Companies to Work for in America."