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Lear Corporation Signs Letter of Intent to Acquire 100% of Lear-Donnelly

2 July 1999

Lear Corporation Signs Letter of Intent to Acquire 100% of Lear-Donnelly Joint Venture Company

    SOUTHFIELD, Mich., July 1 -- Donnelly Corporation
and Lear Corporation today signed a letter of intent for Lear to
acquire Donnelly's 50-percent stake in Lear-Donnelly Overhead Systems, L.L.C.
(LDOS), the joint venture in which the two automotive suppliers are currently
equal partners.
    The transaction is subject to regulatory approval and is expected to be
completed by late summer.  Terms of the transaction were not released.
    LDOS designs and manufactures overhead systems for the automotive
industry.  The joint venture was formed in 1997 by Donnelly and Lear, with
each company contributing certain assets.  The LDOS product line includes
headliners, sun visors, lighting and overhead consoles.
    Lear Corporation, a Fortune 200 company headquartered in Southfield,
Michigan, is the world's largest supplier of automotive interiors, with 1998
proforma sales of more than $12 billion.  The company's world-class products
are designed, engineered and manufactured by more than 100,000 employees in
over 300 facilities located in 33 countries.  Information about Lear and its
products is available on the Internet at http://www.lear.com.
    Donnelly Corporation is an international automotive supplier dedicated to
serving customers around the globe with industry-leading components and
systems in automotive mirrors, windows and handle products.  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.  In addition, Donnelly in nationally recognized as a leader in the
application of participative management principles and systems.  Additional
information is available on the company's website at http://www.donnelly.com.