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Visteon, Pilkington Venture Leverages Dual Expertise to Form New Glass Company

5 June 2000

Visteon, Pilkington Venture Leverages Dual Expertise to Form New Glass Company

    DEARBORN, Mich., June 5 Pilkington plc, one of the world's
leading glass manufacturers, and Visteon, one of the world's leading
automotive systems suppliers, have signed a letter of intent to form a new
glass company that will truly capture the innovative spirit and expertise of
both companies.
    By combining Visteon's strong customer base with Pilkington's global reach
and advanced glass technologies, the joint venture will create a partnership
that will be positioned for significant growth.
    The two companies are negotiating the terms of a joint venture in which
Pilkington would assume the majority ownership and management control of
Visteon's Glass business.  Negotiations are in the early stages with
definitive agreements and approvals likely to take several months before they
are finalized.
    Visteon's Glass business, with annual revenues of $800 million, has four
float furnaces based at plants in Tulsa, Okla., and Nashville, Tenn., plus
vehicle glass fabricating plants based in Tulsa, Nashville and Juarez, Mexico.
Additionally, the business has a significant presence in the automotive glass
replacement market under its strong 'Carlite' brand, and a commercial glass
business that supplies architectural flat glass.
    Under the terms of the agreement, the new company would be the major
supplier of automotive glass to Ford Motor Company and Pilkington would
provide technology to Ford and other Visteon customers.  The new company also
would assume Visteon's equity position in Vitroflex, Mexico and Penstone,
Michigan.
    Pilkington plc is a world leader in the development and manufacturing of
glass products for the building, automotive and technical glass markets with
operations in 22 countries in Europe, the Americas and Asia-Pacific.
    Visteon is a leading full-service supplier that delivers consumer-driven
technology solutions to automotive manufacturers worldwide and through
multiple channels within the global automotive aftermarket.  Visteon has a
global delivery system of more than 130 technical, manufacturing, sales, and
service facilities located in 23 countries.  It has 81,000 employees working
in three business segments: Dynamics and Energy Conversion; Comfort,
Communication and Safety; and Glass.