---

Valeo Breaks Ground On the First North American Electronics Manufacturing Facility

28 September 1999

Valeo Breaks Ground On the First North American Electronics Manufacturing Facility

    PARIS--Sept. 27, 1999--Valeo, a global leader in the supply of components, systems and modules to the automotive industry, just broke ground on a new 65,000-square-foot electronics manufacturing facility in Fort Worth, Texas.
    This highly automated electronics production site, to be completed next spring, will be Valeo's first electronics manufacturing facility in the United States. Integrating the Group's expertise in surface-mount technology, the facility's 170 employees will work jointly with Valeo engineering centers in Auburn Hills, Mich., and Creteil, France, to develop and assemble electronic systems. Located within the Alliance Advanced Technology Center in Fort Worth, developed by Hillwood Corporation, the Valeo facility is slated to begin production in late summer 2000.
    "This site provides us with an electronics manufacturing infrastructure well adapted to the continued growth of our business," explained Martin Haub, Co-Vice-President, Valeo Electronics, during the groundbreaking ceremony.
    Hillwood Chairman Ross Perot, Jr. added, "This site is a significant addition for Alliance. Valeo is a global company whose innovative products are found on cars and trucks by virtually every major vehicle manufacturer worldwide."
    During the ceremonies, Valeo presented its Reverse Sensing System, available on 1999 Ford Windstars and Explorers. This ultra-sonic park assist system offers drivers reliable, cost-effective, near-obstacle detection. Valeo is the market leader in obstacle-detection systems.
    In 1998, Valeo significantly increased its presence in the United States with its acquisition of ITT Electrical Systems. Today, Valeo Electronics' product range includes flat-integrated circuits for hands-free keyless entry systems, electronic ballasts for HID lighting systems, electronic steering column switches, body controllers, compact opto-electronic rain sensors for auto-activated wiper systems and electronic modules for compact automatic clutches.
    Ranked among the world's top 10 automotive suppliers, Valeo employs 50,400 persons in 20 countries. The Group has 112 production facilities, 29 Research and Development and 10 distribution centers. Valeo's estimated sales for 1999 should total 7.5 billion euros ($8.2 billion).
    Alliance Advanced Technology Center is the signature project of Hillwood, currently celebrating its 10th anniversary. More than 80 companies have invested some $3.6 billion in Alliance, including American Airlines, AT&T, Federal Express, J.C. Penney, John Deere, Nestle and Nokia.
    For more information on the Group and its businesses, please consult our Web site: www.valeo.com