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LucasVarity Change of Domicile

23 October 1998

LucasVarity Change of Domicile: Time Limit on Exchangeable Security Lifted

    LONDON, Oct. 23 -- LucasVarity's proposals for changing its
domicile to the United States say that, if sufficient demand exists, the
Company would consider making arrangements for a newly incorporated UK company
to offer a security designed for those UK shareholders who wish to continue
owning UK shares.
    This security was originally required by the London Stock Exchange to be
exchanged for LucasVarity Corporation shares no later than 18 months after the
date of its issue.
    Following further discussions with the London Stock Exchange the Board of
LucasVarity is pleased to announce that the security would no longer be
required by the London Stock Exchange to be exchanged at the end of this
18 month period.