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Meritor Automotive Sells Heavy Truck Trip Recorder Business

16 December 1999

Meritor Automotive Sells Heavy Truck Trip Recorder Business - Heavy Vehicle Systems Keeps Focus on Complete Drivetrain System

    TROY, Mich., Dec. 15 -- Meritor Automotive, Inc.
today announced that it has sold its Tripmaster(R) on-board trip recorder
business for heavy trucks to Tripmaster Corporation of Arlington, Texas, a
newly formed company that will market and support the product on a global
basis.  Terms of the sale were not disclosed.
    Prakash Mulchandani, senior vice president and president of Meritor's
Heavy Vehicle Systems (HVS) business, explained: "We are committed to our
strategic direction for HVS.  Divesting this business reflects our focus on
developing the industry's best and most complete drivetrain system.  We're
concentrating efforts on our core drivetrain components: brakes, axles,
transmissions, clutches and drivelines and their related customer-support
services, and Tripmaster(R) is not core to that strategic direction."
    Meritor, with 1999 sales of $4.5 billion, is a global supplier of a broad
range of systems and components for commercial, specialty and light vehicle
OEMs and the aftermarket.  Meritor consists of two businesses:  Heavy Vehicle
Systems, a leading supplier of complete 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 and
suspension systems and wheel products for passenger cars, light trucks and
sport utility vehicles.
    This press release contains statements relating to future results of the
company (including certain projections and business trends) 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 various risks and uncertainties, including but not limited to global
economic and market conditions; the demand for commercial, specialty and light
vehicles for which the company supplies products; risks inherent in operating
abroad; OEM program delays; demand for and market acceptance of new and
existing products; successful development of new products; reliance on major
OEM customers; labor relations of the company, its customers and suppliers;
and competitive product and pricing pressures, as well as other risks and
uncertainties, including but not limited to those detailed from time to time
in the company's Securities and Exchange Commission filings.  These forward-
looking statements are made only as of the date hereof, and the company
undertakes no obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise.