Return to Positive Net Income in the 3rd Quarter 2009 (y 2)

In terms of cash flow generation, Valeo is working to sustain in the long-term its negative working capital requirements and to maintain a high selectivity on investments which will be limited to a level significantly lower than amortization. Valeo has set as its objective for 2009 to not exceed 100 million euros in cash consumption over the year.

Corporate Governance

Mr Michel de Fabiani, candidate proposed by the FSI, was co-opted as a Valeo Board Director, replacing Mr. Erich Spitz. On this occasion, and after having taken into account the special nature of Valeo's current shareholder structure, the FSI (acting within the framework of the consolidation perimeter of the CDC, of which it is a 51% subsidiary) agreed not to exceed the threshold of 15% of Valeo's capital or voting rights without prior approval of the Valeo Board of Directors.

For its part, Valeo reaffirmed to the FSI its commitment to respect stock market best practices and the AFEP-MEDEF recommendations regarding corporate governance.

In addition, the Chief Executive Officer asked Mr. Erich Spitz to set up an Advisory Committee that he will preside, comprising international personalities.

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 119 plants, 22 Research centers, 38 Development centers, 10 distribution platforms and employs 52,500 people in 27 countries worldwide.

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[1] Net operating cash flow, receipts and disbursements on acquisitions/divestitures of tangible/intangible assets, subsidies

[2] As of January 1, 2009, the presentation of the financial statements has been modified, with customer financing of research and development previously booked as other operating revenues now being mainly reclassified as deductible research and development expenses

[3] Operating income less other income and expenses

[4] Operating margin less amortization

[5] Gearing: net financial debt-to-shareholders' equity ratio

[6] Leverage ratio: financial debt-to-EBITDA (calculated over 12 months rolling)

For more information about the Valeo Group and its activities, please visit our web site http://www.valeo.com.

For additional information, please contact: Kate Philipps, Valeo Group Communications Director, Tel.: +33-1-40-55-20-65, Thierry Lacorre, Valeo Group Investor Relations Director, Tel.: +33-1-40-55-37-93