Valeo Research Projects to Receive Financing of up to 300 Million Euros From the European Investment Bank

Paris (ots/PRNewswire) - The European Investment Bank (EIB)
will grant financing of up to 300 million euros to Valeo for its
current research projects aiming to reduce the fuel consumption and
CO2 emissions of cars and improve active safety. The total research
investment of Valeo for these projects is 645 million euros over four
years and the EIB loan will come with competitive terms in two
installments, the first one of 225 million euros to be drawn by the
end of July.

Aligned with the objective of the European Union to establish a
competitive knowledge-based economy and the policy of the EIB to
finance research and innovation as a priority, this funding will
cover fuel efficiency technologies such as mild and micro hybrid
solutions, the development of systems for electric and hybrid
vehicles and efficient transmission systems, and active safety
technologies including assisted viewing systems, crash avoidance
systems and advanced lighting systems.

EIB Vice-President Philippe de Fontaine Vive stressed "how
crucial it is - especially now as the crisis has spread - to
stimulate long-term investment in those areas that will contribute to
economic recovery and benefit future generations. It is also
important to support RDI (Research, Development and Innovation)
projects with tailor-made financial products as under the
EIB/European Commission's Risk Sharing Finance Facility". He added:
"Valeo is a key contributor in automotive innovation, paving the way
for greener cars and efficient climate change mitigation measures."

Indeed for the EIB, this operation is provided under its European
Clean Transport Facility (ECTF), which is part of its wider response
to the crisis and focuses on car emissions reduction and the
development of new generation vehicle technologies.

Jacques Aschenbroich, Valeo CEO, said: "This funding is very
important, particularly during the current crisis, and will allow
Valeo to continue and accelerate existing research projects aimed at
improving fuel efficiency and active safety for vehicles, two areas
where market demand is very strong and which show strong growth
potential for Valeo."

For Valeo, this loan reinforces the liquidity situation of the
Group. The program of confirmed bank lines amounting to 1.2 billion
euros remains undrawn. The liquidity position is further enhanced
through the negotiation of a new covenant based on the net financial
debt to EBITDA ratio. To date 866 million euros have been
renegotiated as well as a syndicated loan of 225 million euros.

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 122 plants, 61 R&D centers, 10
distribution platforms and employs around 49,000 people in 27
countries worldwide.

The EIB is the long-term lending arm of the European Union, and
is wholly owned by the 27 EU member states. Its aim is to contribute
to the integration, balanced economic development and economic and
social cohesion of EU member states. It does this mainly by providing
loans from funds raised on capital markets on favorable terms thanks
to its AAA credit rating. In 2008 the EIB signed loans totaling 57.6
billion euros; 51.5 billion euros were for projects within the
European Union, of which 4.7 billion in France.

The Bank permanently adapts its activity to developments in EU
policy. In December 2008 the EIB committed itself to increase
exceptionally its lending in the EU by 30 percent in 2009 and 2010 to
help offset the effects of the global economic crisis, with a focus
on SMEs and mid-cap companies, energy and climate change, including
clean transport, and convergence regions. In the first six months of
2009 it has signed loans worth more than 32 billion euros (or 51
percent more than in the same period in 2008) and has approved some 5
billion euros in loans for cleaner vehicles, thereof 3.4 billion
euros under ECTF (European Clean Transport Facility).

The Risk Sharing Finance Facility (RSFF) is a joint
EIB/Commission initiative aimed at improving access to debt financing
and creating additional financing capacity for projects in the fields
of research, development and innovation (RDI) sectors. This Facility,
which comes under the EU's Seventh Research Framework Program (1
billion euros) and from the EIB (1 billion euros), is used to partly
cover the financial risks borne by the EIB when financing these
activities. Following the launch of RSFF in 2007, the EIB has already
concluded contracts under this Facility for more than 2 billion
euros; the main sectors concerned include solar and other forms of
renewable energy, automotive research and biotechnology.

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

For more information about the EIB and its missions and
activities, please visit the web site http://www.eib.org

ots Originaltext: Valeo Management Services
Im Internet recherchierbar: http://www.presseportal.de

Contact:
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; Sabine Parisse, EIB Head of Media Relations, Tel.:
+352-4379-83340