---

LucasVarity in Advanced Discussions with Third Party

26 January 1999

LucasVarity in Advanced Discussions with Third Party

    LONDON, Jan. 25 -- The Board of LucasVarity plc announced
that it is in advanced discussions with a third party concerning a full cash
offer for the entire share capital of LucasVarity.  Although there can be no
certainty that a definitive offer will be made, the Board expects to be in a
position to make a further announcement later this week.