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LucasVarity Acquires Czech Brake Operation

12 January 1999

LucasVarity Acquires Czech Brake Operation

    LONDON, Jan. 11 -- LucasVarity plc (London: LVA, NYSE: LVA)
announced today that its Automotive division has acquired full ownership of
the Autobrzdy brake manufacturing facility in Jablonec, Czech Republic.
    LucasVarity had held a 60 percent ownership position prior to its purchase
of the remaining 40 percent share from its former joint venture partner, the
Czech firm Ateso.
    LucasVarity Automotive President John Plant said, "We have had a good
relationship with our partner in the Autobrzdy joint venture and we are
pleased to be taking a stronger position in the growing Eastern European
region.  We will continue to operate Autobrzdy as we have in the past."
    Founded in 1993, Autobrzdy produces callipers, brake drums, actuation,
rear axles, wheel cylinders and calliper pistons.  Its customers include
Volkswagen, Skoda and Nedcar and it has 830 employees.
    LucasVarity Automotive Vice President of European Operations Ken Sparks
said, "Autobrzdy is our gateway to an expanding market.  Customers such as
Fiat and Daewoo are investing large amounts of capital in Eastern Europe and
we are in a good position to supply them from the Czech Republic."
    LucasVarity designs, manufactures and supplies advanced technology
systems, products and services in the world's automotive and aerospace
industries.