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Donnelly and Schott Form Joint Venture

29 April 1999

Donnelly and Schott Form Joint Venture to Commercialize Electrochromic Window Glass Technology

    HOLLAND, Mich., April 29 -- Donnelly Corporation, based in
Holland, Michigan, and Schott Corporation, based in Yonkers, New York, today
announced the formation of a new joint-venture operation that will design and
manufacture electrochromic windows.
    The new company, Schott Donnelly LLC Smart Glass Solutions, will be a
50/50 joint venture owned by Donnelly and Schott, and will initially be based
in Tucson, Arizona.  Schott Donnelly LLC Smart Glass Solutions will provide
electrochromic glass for automotive and architectural applications.
    Electrochromic glass darkens automatically or through controlled dimming
to reduce unwanted solar heat and glare.  The result is reduced energy costs,
reduced glare and improved comfort for occupants of buildings and vehicles
equipped with electrochromic glass.
    Donnelly currently produces and sells to automotive customers around the
world electrochromic mirrors that dim automatically to reduce headlight glare
during nighttime driving.  Over the past five years, the company's Advanced
Technology Center in Tucson has worked extensively in the development of
electrochromic windows, including a major research project funded by the
United States Department of Energy.
    Schott Corporation is a wholly owned subsidiary of Schott Glas, which is
based in Germany and is one of the world's leading producers of specialty
glass products.  With its extensive expertise in glass technologies and its
strong international position, Schott's involvement in the joint venture will
help create opportunities for commercialization of the technology and help
establish a truly global market for Schott Donnelly LLC Smart Glass Solutions
products.
    "Schott's technological expertise and global strength in the specialty
glass markets make them ideal partners for us to work with in commercializing
electrochromic glass technologies," said Dwane Baumgardner, Donnelly chairman
and chief executive officer.  "We have long held a vision of dramatically
expanding the applications of our EC technologies, and through this
partnership with Schott our vision will become reality."
    "Donnelly is a very respected name in the automotive industry with a
strong technological background in the electrochromic field," stated Guy De
Coninck, vice chairman, chief executive officer and president of Schott
Corporation.  "Schott and Donnelly have a long record of innovation in the
field of special glass solutions.  We are very excited about the future
potential in the field of electrochromic application."
    Donnelly Corporation is an international automotive supplier dedicated to
serving customers around the globe with industry-leading components and
systems in automotive mirrors, windows, door handles and interior trim and
lighting.  Through its various product lines, Donnelly is a supplier to every
major automotive manufacturer in the world.  The company has been based in
Holland, Michigan, since 1905, and today has approximately 5,500 employees in
12 countries worldwide.  For more than 40 years, Donnelly has been recognized
as a leader in the application of participative management philosophies
and practices.
    Schott Corporation is the North American headquarters for the Schott Group
(Germany), and has 12 divisions and subsidiaries employing approximately 3,000
people for the manufacture and distribution of special glass and glass-related
systems.  The Schott Group employs more than 17,000 people worldwide and has
sales of nearly $1.8 billion.