New Valeo Micro-Hybrid System to Equip PSA Peugeot Citroen e-HDi Diesel Models

PARIS, June 9, 2010 - Valeo announces that its second generation Stop-Start system
will be launched by PSA Peugeot Citroen in the third quarter of 2010. The
system, coupled with the HDi diesel engines of the Peugeot and Citroen
brands, will be featured on both manual and automated manual transmission
models and will equip a million vehicles by 2013.

This new generation micro-hybrid system, called i-StARS, differs from
the previous generation in that the control electronics are integrated into
the electrical machine.

The micro-hybrid system automatically cuts off the vehicle's
engine at a red light or in a traffic jam and restarts it when engine power
is solicited. CO2 emissions are reduced by 5g per kilometer on average, and
by up to 15% in congested urban traffic.

To optimize fuel savings and make driving in the Stop-Start
mode smoother, i-StARS can cut off the engine even before the vehicle comes
to a complete stop, that is, as soon as the vehicle's speed falls below 8
km/h with an automated transmission and 20 km/h with a manual transmission.
Engine re-start is immediate (400 msec), noiseless and with no vibrations,
even if the driver suddenly changes his or her mind about stopping. In
addition, since the engine cut-off phases are longer and more frequent than
with other systems, fuel savings are higher.

Valeo offers two micro-hybrid systems, either
starter-alternator or reinforced starter-based, enabling automakers to
introduce this function in line with their brand strategy. Since the system
was first marketed, the Group has booked orders to equip 50 vehicle models
from more than 10 different automakers.

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

For additional information, please contact: Kate Philipps, Valeo Group Communications Director,
Tel: +33-1-40-55-20-65; Sylvie Delion, Product Media Relations, Tel: +33-1-40-55-20-96