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Meritor Automotive Completes Acquisitions

4 January 1999

Meritor Automotive Completes Acquisitions of Euclid Industries And Volvo's Heavy Truck Axle Manufacturing Operations

    TROY, Mich., Jan. 4 -- Meritor Automotive, Inc.
today announced that it has completed the acquisition of Euclid Industries, a
leading supplier and manufacturer of aftermarket replacement parts for a wide
range of medium- and heavy-duty vehicles.  Meritor also announced that it has
completed the acquisition of the heavy truck axle manufacturing operations of
Volvo Truck Corporation in Lindesberg, Sweden.
    As previously stated on December 7, 1998, when Meritor announced its entry
into definitive agreements, these acquisitions advance the Company's growth
initiatives and further strengthen its position in the global automotive
original equipment and aftermarket segments.
    Meritor, with 1998 sales of more than $3.8 billion, is a global supplier
of a broad range of components and systems for commercial, specialty and light
vehicle OEMs and the aftermarket.  Meritor consists of two businesses: Heavy
Vehicle Systems, a leading supplier of drivetrain systems and components for
medium- and heavy-duty trucks, trailers and off-highway equipment and
specialty vehicles including military, bus and coach, and fire and rescue; and
Light Vehicle Systems, a major supplier of roof, door, access control,
suspension and seat adjusting systems and wheels for passenger cars, light
trucks and sport utility vehicles.
    This news release contains statements relating to future results that are
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995.  Actual results may differ materially from those projected
as a result of certain risks and uncertainties, including but not limited to
those detailed from time to time in the Company's Securities and Exchange
Commission filings.