Valeo

Earnings Release • May 20, 2010

10.07

First quarter 2010: 51% rise in original equipment sales versus the same period in 2009

• ¾ Consolidated sales up by 42%
• ¾ Original equipment activity outperforms the market in Europe and Asia, the Group's main contributing regions

PARIS, France, April 22, 2010 – Following the meeting of its Board of Directors today, Valeo presented its sales for the first quarter 2010:

In million euros	Q1 2009*	Q1 2010*	Change 2010/2009*
Original equipment	1,253	1,898	+51%
Aftermarket	310	351	+13%
Miscellaneous	61	60	-2%
Sales	1,624	2,309	+ 42%

* Unaudited

Jacques Aschenbroich, Chief Executive Officer, declared: "Valeo's activity in the first quarter, particularly in the original equipment sector which was up by 51%, confirms the Group's ambition to become the key partner of automakers for technologies that aim to reduce CO2 emissions, an area in which we expect to double our sales by 2013. Valeo's first quarter performance in Asia and in emerging countries has validated the Group's growth strategy to reinforce its historical positions, notably in China, India, Brazil, Thailand and Turkey."

In the first quarter 2010, global automotive production was sustained at a level close to that of the fourth quarter 2009. Compared to the first quarter 2009, global light vehicle production was up by 44%.

Against this backdrop, original equipment sales, totaling 1,898 million euros, were up by 51% in the first quarter 2010, outperforming the market. Aftermarket sales were up by 13% to 351 million euros.

Total consolidated sales amounted to 2,309 million euros, up by 42% versus the first quarter 2009. At constant perimeter and exchange rates, sales were up by 41.5%.

Sales by Business Group

In million euros	Q1 2009*	Q1 2010*	Change 2010 / 2009*
Comfort & Driving Assistance Systems	285	408	+43%
Powertrain Systems	437	636	+46%
Thermal Systems	484	693	+43%
Visibility Systems	430	591	+37%

* Unaudited

The sales increase recorded by the Business Groups can be explained by the strong growth in the original equipment activity of each one (+51% for Comfort & Driving Assistance Systems, +58% for Powertrain Systems, +47% for Thermal Systems and +51% for Visibility Systems), higher than the growth in global production (+44% versus the first quarter 2009).

The Visibility Systems Business Group registered a 37% increase in sales, with a growth of 51% in original equipment sales, due to the higher proportion of aftermarket sales within this Business Group.

Sales by geographical region

In million euros	Q1 2009*	Q1 2010*	Change 2010 / 2009*
Europe	1,092	1,462	+34%
Asia	250	431	+72%
including China			+90%
North America	174	253	+45%
South America	108	163	+51%

* Unaudited

Automotive production in Europe, Asia and North America increased by 32%, 49% and 71%, respectively, versus the same period in 2009. Production levels in Europe and North America, however, remained lower than before the crisis, down by 21% and 17%, respectively, versus the first quarter 2008.

Against this backdrop, the Group's original equipment activity outperformed its main markets (except for North America) thanks to:

• its favorable customer position in Europe;
• the launch of new product lines, notably in Asia within the Powertrain Systems and Comfort & Driving Assistance Business Groups;
• an overall increase in the Group's market shares in Asia.

Highlights

Valeo organized an Investor Day on March 10, 2010 during which the Group presented its new strategic plan and its medium-term financial objectives.

Within the framework of the Group's divestiture of non-strategic businesses, Valeo announced the following projects on February 25 and March 19:

• Sale of the headlamp leveling actuator business, announced on February 25, 2010, comprising an R&D activity and a production site in France and start-up activities in China; this activity employs 250 people and generated sales of 46 million euros in 2009;
• Sale of the speed controller business, announced on March 19, 2010, comprising the activity's headquarters and a plant in France, a joint-venture plant in China and two distribution centers based in the U.K. and the U.S.; this activity employs 195 people and generated sales of 39.4 million euros in 2009.

Outlook

In the second quarter 2010, Valeo anticipates the same level of sales as in the first quarter 2010, despite a slight drop in automotive production in Europe.

Next event

First half 2010 results on July 27, 2010, after closure of the Paris Bourse.

Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for the automotive industry, mainly for CO2 emissions reduction. Valeo ranks among the world's top automotive suppliers. The Group has 118 plants, 21 Research centers, 40 Development centers, 10 distribution platforms and employs 55,100 people in 27 countries worldwide.

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 20 39

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