Sales grew by 16% in Europe, 146% in North America and 27% in Asia. This growth is mainly due to the acquisition of new businesses in 1998. Sales in South America were down by 44%, accounting for 2% of total Group sales. Provisional half-year results are higher than the estimates given at the Annual General Meeting of Shareholders on May 25, 1999. They show a progression in net income from consolidated companies surpassing that of sales as well as accretive earnings per share, taking into account the capital increase of 1998.

Operating income in the first half suffered from the drop in business activity in South America, the impact of restructuring and the disposal of assets in this region, together with the launch of new advanced technology lighting products. In an automotive market that is buoyant in Europe and in North America, stable in South America and recovering significantly in South Korea, Group sales for the full year are expected to exceed 7.6 billion euros (50 billion French francs) against 6,019 euros in 1998. This forecast includes the integration, over five months, of Mando's alternators and starters business, of which the Group recently announced the acquisition. A significant improvement in margins is expected in the second half. Final figures will be published during the week of September 6.

Delco Remy President Thomas J. Snyder stated, "The Asian market has recovered quickly and represents an important growth opportunity for the company."

RKL manufactures automotive starters and heavy-duty starters and alternators for Korean customers such as Daewoo, Asia Motors, Kia, Hyundai, and others as well as exporting product primarily to the U.S. OEM market.

Delco Remy International, Inc., headquartered in Anderson, Indiana (USA), became a public company with an initial public offering of stock in December 1997. The company designs, manufactures, remanufactures and distributes electrical, powertrain/drivetrain and related components for automobiles and light trucks, medium- and heavy-duty trucks and other heavy-duty, off-road vehicles. Products include starter motors, alternators, engines, transmissions, torque converters, fuel systems, and traction control systems. The Company serves the aftermarket and original equipment manufacturer market principally in North America, as well as in Europe, Latin America and Asia Pacific.

Lear, one of the world's largest automotive suppliers, also has been assigned the design, engineering and manufacturing of the 60-40, fold-down rear seat for the 2001 model year F-150 SuperCrew, Ford's all-new, full-size pickup that will feature four full-size doors and seating for up to six adult passengers. SuperCrew models will be built in Kansas City starting in December.

Lear also has acquired a 100,000-square-foot plant in nearby Liberty, Missouri where a workforce of about 200 Lear employees will assemble the F-150 seats for just-in-time delivery to Ford's Kansas City plant. Lear also produces the flooring and acoustics system as well as the door panels for all Ford F-150 pickup trucks built in North America.

Other details of Lear's new Ford F-Series business were not announced.