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GM OnStar(R) Is Largest-Ever Mirror Business for Donnelly

4 February 2000

GM OnStar(R) Is Largest-Ever Mirror Business for Donnelly

    HOLLAND, Mich., Feb. 3 -- Next quarter, when Donnelly
Corporation begins shipping interior mirrors loaded with the
electronics to support General Motors' new OnStar(R) system, it will represent
the beginning of one of the most important business developments in Donnelly's
long history as an automotive supplier.
    The inclusion of the sophisticated OnStar electronics in many of the prism
and electrochromic (auto-dimming) mirrors sold to GM will substantially
increase the value Donnelly provides in those products.  Through that value
increase, Donnelly estimates the business will generate incremental sales over
the next several years that will position the OnStar products as the company's
largest-ever single segment of interior mirror business.
    "Over the past four years we have been chosen by General Motors as
Supplier of the Year for interior mirrors, and we are honored that Donnelly
has now been entrusted with supplying what we believe will be the majority of
GM's OnStar mirror products in the years ahead," said Dwane Baumgardner,
Donnelly chairman and chief executive officer.  "As we further demonstrate to
the marketplace our capabilities in developing and integrating electronics
into our prismatic and electrochromic mirror products, we are very proud to
carry with us this vote of confidence from a key customer."
    Donnelly will provide the OnStar electronics in a mix of prismatic and
electrochromic mirrors.  Both kinds of mirrors may also include additional
electronic features such as compass and temperature displays and precision
interior map lighting.  Through its prismatic and electrochromic products,
Donnelly supplies the interior mirrors used on most of the GM cars and light
trucks built in North America.
    "While electrochromic mirrors are the fastest-growing segment of our
mirror business, our customers have also said very clearly that, for many
vehicles, prismatic mirrors will remain the technology of choice," Baumgardner
said.  "By including advanced features such as OnStar, compass, temperature
displays and lighting on prismatic mirrors, we are able to move that product
substantially up the value scale.  That represents a tremendous potential
return on the investments we've made in developing our electronics
capabilities."
    Through its mirror products and other product lines, Donnelly Corporation
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 6,000 employees in 12 countries worldwide.  Donnelly has been
named by the Society of Automotive Engineers as a model company in lean
manufacturing practices.  In addition, Donnelly is nationally recognized as a
leader in the application of participative management principles and systems.