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Meritor Board Authorizes an Additional $75 Million For Share Repurchase

10 February 2000

Meritor Board Authorizes an Additional $75 Million For Share Repurchase Program

    TROY, Mich., Feb. 9 -- Meritor Automotive Inc.'s
board of directors today authorized up to an additional $75 million for the
purchase of the company's common stock, beginning immediately.  Under the
repurchase program, the company expects to purchase shares periodically in the
open market or through privately negotiated transactions, as market conditions
warrant and in accordance with Securities and Exchange Commission rules.
Meritor's stock price closed at $16 1/16 on Feb. 8, 2000.  There are
approximately 62.3 million shares outstanding.
    This action follows an initial share repurchase program that was announced
on September 15, 1999, pursuant to which the board authorized $125 million for
the purchase of company shares.  The initial program, completed in January,
repurchased 6.8 million shares or 9.8 percent of those outstanding as of
September 15, 1999.
    Meritor Chairman and Chief Executive Officer Larry D. Yost said "Our
company's stock is temporarily undervalued and offers an excellent investment
opportunity for Meritor.  Since becoming a stand-alone public company, Meritor
has achieved outstanding results, including delivering nine consecutive
quarters of double-digit earnings growth, before special items, exceeding most
of our stated long-term financial growth goals, successfully acquiring and
integrating three major businesses, and entering into an exciting new joint
venture."
    "Our stock repurchase program is just one of several strategies we
continue to use, in our efforts to enhance long-term shareowner value.  We are
also focused on growing our existing business base through market share gains
and new product introductions; business alliances and joint ventures;
selective acquisitions; restructuring and rigorous cost-reduction efforts to
boost operating performance; and divestment of non-core product lines.  In
support of our long-term financial goals, Meritor has built a portfolio of
leadership businesses that reflect strength, balance and diversity of
products, customers and geographic markets.  We believe that we are well
positioned to take full advantage of industry trends and expand our leadership
market shares, which contribute to our company's top-line growth."
    Yost concluded, "Our solid financial position and strong cash flow support
an extension of our repurchase program, as well as providing a basis for
exploring future strategic opportunities.  The near-term outlook for our core
markets remains strong, aided by generally positive global economic
conditions."
    Meritor, with 1999 sales of $4.5 billion, is a global supplier of a broad
range of components and systems 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, automotive body, access
control and suspension systems and wheel products for passenger cars, light
trucks and sport utility vehicles.
    This news release contains statements relating to future results 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 certain risks and uncertainties, including but not limited to
those detailed from time to time in the company's Securities and Exchange
Commission filings.