24.11.2004 – 18:20

Valeo Management Services

Valeo Capital Increase Reserved for the Group's Employees

Paris, November 24 (ots/PRNewswire)

Following the announcement
made by press release of 6 September 2004  concerning the launch of
an employee shareholding plan with a share capital  increase
authorized by the Annual General Shareholder's Meeting of April 5
2004, Valeo announces the opening of the subscription/retraction
period which  will run from 24 November to 1st December inclusive, as
well as the fixing of  the subscription price of the shares offered
to employees at 23.65 euros  corresponding to the average opening
Valeo share price during the twenty  working days of the Stock
Exchange prior to the date of the Chairman's  decision fixing the
date of the opening of the subscription period (taken the 24
November), with a discount of 20% and rounded up to the next euro
cent.

The maximum number of shares in this plan is 1,760,000(x), without
preferential subscription rights, representing 2.1% of the capital of
the  Group. The number of shares offered will be definitive at the
end of the  subscription/retraction period in the light of the number
of subscriptions. The implementation of the share capital increase is
planned for the16 December 2004.

The prospectus concerning this capital increase received visa No.
04-738 from the Financial Markets Authority on 27 August 2004. It is
freely available from the Valeo Head Office and is published on the
Group's website (valeo.com) as well as on the Financial Markets
Authority website (www.amf-france.org).

Valeo is an independent industrial group fully focused on the
design, production and sale of components, integrated systems and
modules for cars and trucks. Valeo ranks among the world's top
automotive suppliers. The Group has 130 plants, 65 R&D centers, 9
distribution centers and employs 70,200 people in 26 countries
worldwide.

(x) The subscription of 580 000 of these shares is reserved for
the  Société Générale in order to offer to employees of certain
subsidiaries  outside France a leverage offer equivalent to that
proposed by a mutual  employees investment fund (FCPE).

Contact:

Contact presse/investor relations : Kate Philipps, +33-1-40-55-20-65,
kate.philipps@valeo.com; Rémy Dumoulin, +33-1-40-55-29-30,
remy.dumoulin@valeo.com