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Meritor Completes Acquisition Of LucasVarity's Heavy Vehicle Braking Systems Business

1 February 1999

Meritor Automotive Completes Acquisition Of LucasVarity's Heavy Vehicle Braking Systems Business

    TROY, Mich., Feb. 1 -- Meritor Automotive, Inc.
today announced that it has completed the acquisition of LucasVarity's Heavy
Vehicle Braking Systems (HVBS) business for $390 million in cash.  The HVBS
business manufactures a variety of premier brake system components for
commercial vehicles including air disc brakes, hubs, drums and hydraulic
brakes.
    As previously announced on November 23, 1998, when Meritor announced its
plans to acquire LucasVarity's HVBS business, the acquisition expands
Meritor's presence in Europe and enhances the company's industry position as a
leading stopping-systems supplier.  LucasVarity's HVBS business will become
part of Meritor's Heavy Vehicle Systems and Worldwide Aftermarket businesses.
    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.