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LucasVarity to Sell its Wiring Business

29 March 1999

LucasVarity to Sell its Wiring Business

    LONDON, March 29 -- LucasVarity plc (London: LVA, NYSE: LVA)
today announced that it intends to sell its wiring systems business,
comprising Lucas Rists and a 50% stake in Lucas SEI Wiring Systems.
    The decision, which has been approved by TRW Inc, whose offer to acquire
LucasVarity went unconditional on 25 March, follows a strategic review which
concluded that the unit, whilst profitable, is a non-core activity and shares
few synergies with the rest of the Group.
    John Plant, President of LucasVarity Automotive, said "Our automotive
strategy is to establish global leadership positions in our chosen sectors of
vehicle systems and modules.  In light of this, the future of our wiring
operations will be best served by becoming part of a company which has wiring
as a principal activity.  We are selling a good business with bright prospects
and already have received significant expressions of interest for it from a
number of companies."
    David Underwood, Managing Director of the wiring systems business, said
"In recent years the business has strengthened its relations with its
customers, won awards for quality and delivery performance and achieved solid
productivity  improvements.  By joining now with another company in which
wiring is a core activity, the wiring systems business will enhance its
ability to take advantage of significant future opportunities, to the benefit
of both its customers and its employees."
    In 1998 the wiring systems business had a turnover of around #180 million,
or 4% of LucasVarity's total turnover.  It has operations in the UK, Poland,
Slovakia and Egypt and 5,500 employees.
    LucasVarity designs, manufactures and supplies advanced technology
systems, products and services in the world's automotive and aerospace
industries.