Lear Corporation
LEA
#2828
Rank
$5.90 B
Marketcap
$119.63
Share price
-1.94%
Change (1 day)
20.36%
Change (1 year)
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

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<B><FONT size="5">FORM&nbsp;10-K</FONT></B>

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</DIV>

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<B>SECURITIES AND EXCHANGE COMMISSION</B>

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Washington,&nbsp;D.C. 20549
</DIV>

<P align="left">
(Mark One)

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<TD width="5%"></TD>
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<TD>&nbsp; [X]</TD>
<TD align="left">
<B>ANNUAL REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF THE</B></TD>
</TR>

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<DIV align="center">
<B>SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<P align="left">
For the fiscal year ended December&nbsp;31, 1999.
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<TD>&nbsp; [&nbsp;&nbsp;&nbsp;]</TD>
<TD align="left">
<B>TRANSITION REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF THE
</B></TD>
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<DIV align="center">
<B>SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<P align="left">
For the transition period from
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

<P align="left">
<B>Commission file number: 1-11311</B>

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<B><FONT size="5">LEAR CORPORATION</FONT></B>
</DIV>

<DIV align="center">
<FONT size="2">(Exact name of registrant as specified in its
charter)</FONT>
</DIV>

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<TD align="center" valign="top"><FONT size="2">
<B>Delaware<BR>
</B>(State or other jurisdiction of<BR>
incorporation or organization)</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
<B>13-3386776<BR>
</B>(I.R.S. Employer Identification No.)</FONT></TD>
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<TD align="center" valign="top"><FONT size="2">
<B>21557 Telegraph Road, Southfield, MI<BR>
</B>(Address of principal executive offices)</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
<B>48086-5008<BR>
</B>(zip code)</FONT></TD>
</TR>

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<TD colspan="3" align="center" valign="top"><FONT size="2"><B>(248) 447-1500</B></FONT></TD>
</TR>

<TR>
<TD colspan="3" align="center" valign="top"><FONT size="2">Registrant&#146;s telephone number, including area code</FONT></TD>
</TR>

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<TD colspan="3" align="left"><HR size="1"></TD>

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<TD colspan="3" align="center" valign="top"><FONT size="2">Securities Registered Pursuant to Section&nbsp;12(b) of the Act:</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

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<TD align="center" valign="top"><FONT size="2">
<B>Title of each class</B></FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
<B>Name of each exchange on which registered</B></FONT></TD>
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<TR>
<TD align="center" valign="top"><FONT size="2">
Common Stock, par value $.01&nbsp;per share</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
New&nbsp;York Stock Exchange</FONT></TD>
</TR>

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<P align="center">
Securities Registered Pursuant to Section&nbsp;12(g) of the Act:
None

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark whether the registrant (1)&nbsp;has filed
all reports required to be filed by section&nbsp;13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding
12&nbsp;months (or for such shorter period that the registrant
was required to file such reports), and (2)&nbsp;has been subject
to such filing requirements for the past
90&nbsp;days.&nbsp;&nbsp;Yes&nbsp;&nbsp;[X]
&nbsp;No&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark if disclosure of delinquent filers
pursuant to Item&nbsp;405 of Regulation&nbsp;S-K is not contained
herein, and will not be contained, to the best of
registrant&#146;s knowledge, in definitive proxy or information
statements incorporated by reference in Part&nbsp;III of this
Form&nbsp;10-K or any amendment to this
Form&nbsp;10-K&nbsp;&nbsp;[X]

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;1, 2000, the aggregate market value of the
registrant&#146;s Common Stock, par value $.01&nbsp;per share,
held by non-affiliates of the registrant was $1,444,786,882. The
closing price of the Common Stock on March&nbsp;1, 2000 as
reported on the New&nbsp;York Stock Exchange was $22.00&nbsp;per
share.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;1, 2000, the number of shares outstanding of the
registrant&#146;s Common Stock was 66,103,500&nbsp;shares.

<DIV align="center">
<B>DOCUMENTS INCORPORATED BY REFERENCE</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain sections of the registrant&#146;s Notice of Annual
Meeting of Stockholders and Proxy Statement for its Annual
Meeting of Stockholders to be held on May&nbsp;11, 2000, as
described in the Cross-Reference Sheet and a Table of Contents
included herewith, are incorporated by reference into
Part&nbsp;III of this Report.

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<!-- TOC -->
<A name="toc"><DIV align="CENTER"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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</TR>
<TR><TD colspan="9"><A HREF="#000">CROSS REFERENCE SHEET AND TABLE OF CONTENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">PART I</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">BUSINESS OF THE COMPANY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXECUTIVE OFFICERS OF THE REGISTRANT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">PART II</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">LEAR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">LEAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">LEAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS&#146; EQUITY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">LEAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">PART III</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">PART IV</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">INDEX TO EXHIBITS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">SIGNATURES</A></TD></TR>
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<P align="center"><B>CROSS REFERENCE SHEET</B>

<DIV align="center">
<B>AND</B>
</DIV>

<DIV align="center">
<B>TABLE OF CONTENTS</B>
</DIV>

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<TD align="center" nowrap colspan="3"><FONT size="2"><B>Page Number</B></FONT></TD>
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<TD></TD>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>or Reference</B></FONT></TD>
</TR>

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<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>(1)</B></FONT></TD>
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<TD></TD>
<TD align="center" valign="top"><FONT size="2">
PART&nbsp;I</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 1.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Business</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 2.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Properties</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
<TD></TD>
</TR>

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<TD align="left" valign="top"><FONT size="2">
ITEM 3.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Legal proceedings</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

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<TD align="left" valign="top"><FONT size="2">
ITEM 4.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Submission of matters to a vote of security holders</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
<TD></TD>
</TR>

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<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Executive officers of the registrant</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
PART&nbsp;II</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 5.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Market for the Company&#146;s common stock and related
stockholder matters</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 6.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Selected financial data</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">22</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 7.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Management&#146;s discussion and analysis of financial condition
and results of operations</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">24</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 8.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Consolidated financial statements and supplementary data</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 9.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Changes in and disagreements with accountants on accounting and
financial disclosure</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
PART&nbsp;III</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 10.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Directors and executive officers of the Company(2)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 11.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Executive compensation(3)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 12.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Security ownership of certain beneficial owners and management(4)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 13.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certain relationships and related transactions(5)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">77</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
PART&nbsp;IV</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
ITEM 14.</FONT></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exhibits, financial statement schedule and reports on Form&nbsp;
8-K</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">78</FONT></TD>
<TD></TD>
</TR>

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<TR valign="top">
<TD>(1)&nbsp;</TD>
<TD align="left">
Certain information is incorporated by reference, as indicated
below, from the registrant&#146;s Notice of Annual Meeting of
Stockholders and Proxy Statement for its Annual Meeting of
Stockholders to be held on May&nbsp;11, 2000 (the &#147;Proxy
Statement&#148;).</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(2)&nbsp;</TD>
<TD align="left">
A portion of the information required is incorporated by
reference from the Proxy Statement sections entitled
&#147;Election of Directors&#148; and &#147;Management.&#148;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(3)&nbsp;</TD>
<TD align="left">
Proxy Statement section entitled &#147;Executive
Compensation.&#148;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(4)&nbsp;</TD>
<TD align="left">
Proxy Statement section entitled &#147;Management&nbsp;&#151;
Security Ownership of Certain Beneficial Owners and
Management.&#148;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(5)&nbsp;</TD>
<TD align="left">
Proxy Statement section entitled &#147;Certain
Transactions.&#148;</TD>
</TR>

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "PART I" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center"><B>PART&nbsp;I</B>

<P align="left"><B>Item&nbsp;1&nbsp;&#151; Business</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>In this Report, when we use the terms the &#147;Company,&#148;
&#147;Lear,&#148; &#147;we,&#148; &#147;us&#145; and
&#147;our,&#148; unless otherwise indicated or the context
otherwise requires, we are referring to Lear Corporation and its
consolidated subsidiaries. A substantial portion of the
Company&#146;s operations are conducted through wholly-owned
subsidiaries of Lear Corporation. Certain disclosures included in
this Report constitute forward-looking statements that are
subject to risk and uncertainty. See &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of
Operations&nbsp;&#151; Forward-Looking Statements.&#148;</I>

<!-- link1 "BUSINESS OF THE COMPANY" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center"><B>BUSINESS OF THE COMPANY</B>

<P align="left"><B>General</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are one of the ten largest independent automotive suppliers in
the world. We are also the leading supplier of automotive
interior systems in the estimated $52&nbsp;billion global
automotive interior market and the third largest supplier in the
estimated $20&nbsp;billion global automotive electrical
distribution systems market. We have grown substantially over the
last five years as a result of both internal growth and
acquisitions. Our sales have grown from $3.1&nbsp;billion in 1994
to $12.4&nbsp;billion in 1999, a compound annual growth rate of
32%. Operating income and EBITDA have grown from
$170&nbsp;million and $226&nbsp;million in 1994 to
$713&nbsp;million and $1.054&nbsp;billion in 1999. Our present
customers include every major automotive manufacturer in the
world. These customers include Ford, General Motors,
DaimlerChrysler, BMW, Fiat, Honda, Peugeot, Renault, Saab, Toyota
and Volkswagen.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have established in-house capabilities in all five principal
segments of the automotive interior market: seat systems;
flooring and acoustic systems; door panels; headliners; and
instrument panels. We are the largest supplier in the estimated
$25&nbsp;billion global seat systems market. In North America, we
are one of the two largest suppliers in each of the other
principal automotive interior markets, with the exception of the
instrument panels market in which we are the fourth largest
supplier. We are also one of the leading global suppliers of
automotive electrical distribution systems. As a result of these
capabilities, we are able to offer our customers fully-integrated
modules, as well as design, engineering and project management
support for the entire automotive interior, including electronics
and electrical distribution systems. We believe that our ability
to offer automotive interiors with integrated electrical
distribution systems provides us with a competitive advantage as
automotive manufacturers continue to reduce their supplier bases
and cost structures and to demand improved quality, greater
product integration and enhanced technology.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are focused on delivering high quality automotive systems and
components to our customers on a global basis. Due to the
opportunity for significant cost savings and improved product
quality and consistency, automotive manufacturers have
increasingly required their suppliers to manufacture automotive
systems and components in multiple geographic markets. In recent
years, we have followed our customers and expanded our operations
significantly in Western Europe, as well as in Eastern Europe,
South America, South Africa and the Asia/ Pacific Rim region. As
a result of our efforts to expand our worldwide operations, our
sales outside the United States and Canada have grown from
$.8&nbsp;billion in 1994 to $4.7&nbsp;billion in 1999. See
Note&nbsp;15, &#147;Segment Reporting,&#148; to our 1999
consolidated financial statements included in this Report.

<P align="left"><B>Strategy</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal objectives are to expand our position as the
leading supplier of automotive systems in the world and to
capitalize on integration opportunities resulting from our new
electrical distribution system capabilities. We intend to build
on our full-service capabilities, strong customer relationships
and worldwide

<P align="center">1

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
presence to increase our share of the global automotive interior
market. To this end, our strategy is to capitalize on three
significant trends in the automotive industry:
</DIV>
<P>

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<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; the increasing emphasis on the automotive interior
by automotive manufacturers as they seek to differentiate their
vehicles in the marketplace;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; the increasing demand for fully-integrated modular
assemblies, such as cockpits, overhead and door panel
modules;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; the consolidation and globalization of the supplier
base of automotive manufacturers.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These trends are rooted in the competitive pressures on
automotive manufacturers to improve quality and reduce time to
market, capital needs, labor costs, overhead and inventory. These
trends have resulted in automotive manufacturers outsourcing
complete automotive interior modules as well as complete
automotive interiors. Recently, we have received a number of
future business awards to design, engineer, manufacture, deliver
and, in some cases, install complete interior modules as well as
complete automotive interiors. We believe that the criteria for
selection of automotive interior suppliers is not only cost,
quality and responsiveness but increasingly includes worldwide
presence and certain full-service capabilities, such as the
capability to supply electronically-integrated modules.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Key elements of our strategy:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Enhance Strong Relationships with our Customers.
</I>We have developed strong relationships with our customers
which allow us to identify business opportunities and anticipate
our customers&#146; needs in the early stages of vehicle design.
We believe that working closely with our customers in the early
stages of designing and engineering vehicle interior systems
gives us a competitive advantage in securing new business. We
maintain &#147;Customer Focused Divisions&#148; for most of our
major customers. This organizational structure consists of
several dedicated groups, most of which are focused on serving
the needs of an individual customer and supporting that
customer&#146;s programs and product development. Each division
can provide all of the interior systems and components that
customer needs, allowing that customer&#146;s purchasing agents,
engineers and designers to have a single point of contact. We
work to maintain an excellent reputation with our customers for
timely delivery and customer service and for providing world
class quality at competitive prices. As a result of our service
and performance record, many of our facilities have won awards
from automotive manufacturers with which we do business.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Capitalize on Module and Integration
Opportunities. </I>We believe that the same competitive pressures
that led automotive manufacturers to outsource the individual
interior components to independent suppliers, such as Lear, will
cause our customers to demand delivery of fully-integrated
modules for new vehicle models. As automotive manufacturers
continue to seek ways to improve quality and reduce costs, we
believe our customers will increasingly look to independent
suppliers to:</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="6%"></TD>
<TD width="94%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; supply fully-integrated modules of the automotive
interior;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; act as systems integrators, by managing the design,
purchase and supply of the total automotive interior.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Leverage Electronic Capabilities. </I>Because
electrical distribution systems and electrical/electronic
products are an increasingly important part of automotive
interior modules, we believe that we will have a competitive
advantage in securing new business, including integration
opportunities, as a result of our acquisition of
UT&nbsp;Automotive.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Continue Global Expansion. </I>In 1999,
approximately two-thirds of global automotive interior production
took place outside of North America. In recent years, automotive
manufacturers in Western Europe have outsourced to a greater
number of automotive suppliers than automotive manufacturers in
North America. As a result, we believe that we have excellent
opportunities for continued growth through supplier consolidation
in Western Europe, as automotive manufacturers reduce the number
of suppliers with whom they do business. Markets such as South
America and the Asia/ Pacific Rim region also present long-term
growth opportunities, as demand for automotive vehicles increases
and automotive</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
manufacturers expand production in these markets. As a result of
our strong customer relationships and worldwide presence, we
believe that we are well-positioned to continue to grow with our
customers as they expand their operations worldwide.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Invest in Product Technology and Design
Capability. </I>We intend to continue to make significant
investments in technology and design capabilities to support our
customers. We maintain five advanced technology centers and
twenty-seven customer-focused product engineering centers where
we design and develop new products and conduct extensive product
testing. We also have state-of-the-art acoustics testing,
instrumentation and data analysis capabilities. With the
acquisition of UT Automotive, we acquired numerous engineering
and design facilities in North America, Europe and Asia.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that in order to effectively develop total automotive
interior systems, it is necessary to integrate the research,
design, development, styling and validation of all interior
subsystems concurrently. We recently expanded our advanced
technology center at our world headquarters in Southfield,
Michigan. As a result, we are the only automotive supplier with
engineering, research, development and validation capabilities
for all five interior systems at one location. Our investments in
research and development are consumer driven and customer
focused. We conduct extensive analysis and testing of consumer
responses to automotive interior styling and innovations. Because
automotive manufacturers increasingly view the vehicle interior
as a major selling point to their customers, the focus of our
research and development efforts is to identify new interior
features that make vehicles safer, more comfortable and
attractive to consumers.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Increase Use of &#147;Just-in-Time&#148; Facility
Network. </I>We have established facilities that allow our
customers to receive automotive interior products on a
just-in-time basis. The just-in-time manufacturing process
minimizes inventories and fixed costs for both us and our
customers and enables us to deliver products with as little as
90&nbsp;minutes notice. Most of our just-in-time manufacturing
facilities are dedicated to individual customers. In many cases,
by carefully managing floor space and overall efficiency, we can
move the final assembly and sequencing of other automotive
interior systems and components from centrally-located facilities
to our existing just-in-time facilities. We believe that
combining our just-in-time manufacturing techniques with our
systems integration capabilities provides us with an important
competitive advantage in delivering total automotive interior
systems to automotive manufacturers.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Growth Through Strategic Acquisitions. </I>
Strategic acquisitions have been an important element in our
worldwide growth and in our efforts to capitalize on the
globalization, integration and supplier consolidation trends. We
intend to continue to review attractive acquisition opportunities
that preserve our financing flexibility. We will focus on
acquisitions:</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="10%"></TD>
<TD width="1%"></TD>
<TD width="89%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
that strengthen our relationships with our customers;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
enhance our existing product, process and technological
capabilities;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
lower our systems costs;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
provide us with growth opportunities in new markets;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
provide attractive financial returns.</TD>
</TR>

</TABLE>

<P align="left"><B>Acquisitions</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To supplement our internal growth and implement our business
strategy, we have made several strategic acquisitions, including
the following:

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>UT Automotive Acquisition</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May 1999, we acquired UT Automotive for a purchase price of
approximately $2.3&nbsp;billion. UT Automotive was a leading
independent supplier of automotive electrical distribution
systems, producing a broad portfolio of automotive interior
products, including instrument panels, headliners and door
panels. With the acquisition of UT Automotive, we became the
third largest supplier of automotive electrical distribution

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<DIV align="left">
systems in the estimated $20&nbsp;billion global automotive
electrical distribution systems market. In addition, we
significantly increased our presence in the headliner and
instrument panel segments of the global automotive interiors
market, as a result of UT Automotive&#146;s position in North
America as the second largest headliner supplier and the fourth
largest instrument panel supplier. On June&nbsp;25, 1999, we sold
to Johnson Electric Holdings Limited, for $310 million, the
Electric Motor Systems (&#147;EMS&#148;) business we acquired in
the UT Automotive acquisition. EMS was a supplier of industrial
and automotive electric motors and starter motors for small
gasoline engines. The EMS business had net sales, operating
income and EBITDA of approximately $351&nbsp;million,
$29&nbsp;million and $48&nbsp;million, respectively, for the year
ended December&nbsp;31, 1998.
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Delphi Seating Acquisition</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September 1998, we acquired the seating business of Delphi
Automotive Systems, formerly a division of General Motors
Corporation. Delphi Seating was a leading supplier of seat
systems to General Motors with sixteen facilities located in ten
countries. The Delphi Seating acquisition strengthened our
relationship with General Motors and expanded our product lines,
technological capabilities and market share. The aggregate
purchase price for the Delphi Seating acquisition was
approximately $247&nbsp;million.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Borealis Acquisition</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 1996, we acquired Borealis Industrier, a leading
Western European supplier of instrument panels, door panels and
other automotive components. The Borealis acquisition provided us
with the technology and facilities to manufacture instrument
panels, giving us the ability to produce complete automotive
interior systems in Europe. Borealis also produced door panels,
climate systems, exterior trim and various components for the
Western European automotive, light truck and heavy truck
industries. In addition, the Borealis acquisition increased our
presence in Western Europe and strengthened our relationships
with Volvo, Saab and Scania.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Masland Acquisition</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In July 1996, we acquired Masland Corporation. The Masland
acquisition gave us the manufacturing capabilities to produce
flooring and acoustic systems. In 1999, primarily as a result of
the Masland acquisition, we held a 40%&nbsp;share of the
estimated $1.6&nbsp;billion North American flooring and acoustic
systems market. Also as a result of the Masland acquisition, we
became a major supplier of interior and luggage trim components
and other acoustical products which are designed to minimize
noise, vibration and harshness for passenger cars and light
trucks.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Automotive Industries Acquisition</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August 1995, we acquired Automotive Industries, a leading
designer and manufacturer of high quality automotive interior
systems and blow-molded plastic parts for automotive and light
truck manufacturers. Prior to the Automotive Industries
acquisition, we had participated primarily in the seat systems
segment of the automotive interior market. By providing us with
substantial manufacturing capabilities in the door panel and
headliner segments, the Automotive Industries acquisition made us
one of the largest independent direct suppliers of automotive
interior systems in the North American light vehicle market.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Other Acquisitions</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since January&nbsp;1, 1994, we have completed eleven acquisitions
in addition to the five described above. Most significantly, in
terms of size, geographic presence and contribution to our
product offerings, we acquired.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="6%"></TD>
<TD width="1%"></TD>
<TD width="93%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
the Italian automotive interiors manufacturers Pianfei and
Strapazzini in 1998;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
Keiper Car Seating in 1997;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
the primary automotive seat systems supplier to Fiat in 1994.</TD>
</TR>

</TABLE>

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<P align="left"><B>Products</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our products have evolved as a result of our many years of
manufacturing experience in the automotive seat frame market,
where we have been a supplier to Ford and General Motors since
our inception in 1917. The seat frame has structural and safety
requirements which make it the basis for overall seat design and
was the logical first step in our emergence as a premier supplier
of complete seat systems and seat components. Through the
acquisitions discussed above, we have expanded our product
offerings and can now manufacture and supply our customers with
completely integrated automotive interiors, including electrical
distribution systems and electronics, flooring and acoustic
systems, door panels, headliners and instrument panels. We also
produce a variety of blow-molded products and other automotive
components. Our sales for the year ended December&nbsp;31, 1999
were comprised of the following products: 60%&nbsp;seat systems;
28%&nbsp;interior trim products and components; and
12%&nbsp;electrical distribution systems and electronics. We
believe that automotive manufacturers will continue to seek ways
to improve vehicle quality and value, while reducing the costs of
vehicle components. As automotive manufacturers pursue these
objectives, we expect that they will increasingly look to
suppliers, such as Lear, with the capability to test, design,
engineer and deliver products for a complete vehicle interior. We
believe that we will be able to design fully-integrated
automotive interior modules to:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="6%"></TD>
<TD width="1%"></TD>
<TD width="93%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
reduce the number and complexity of parts used;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
improve quality and warranty performance;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
reduce the installation costs of automotive
manufacturers;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
add value at lower costs.</TD>
</TR>

</TABLE>

<P align="left">
We also believe that automotive manufacturers will continue their
move to modular integrated production by sourcing to key
suppliers, such as Lear, the development and manufacture of
complete automotive interior systems.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With the acquisition of UT Automotive, we strengthened our
position in certain of our existing product categories,
particularly the headliner and instrument panel categories. In
addition, the UT Automotive acquisition provided us with
extensive capabilities in automotive electrical distribution
systems and electrical/electronic products. We believe that this
broadened product portfolio substantially enhances our ability to
supply complete automotive interiors. Specifically, we believe
that we will be able to combine UT Automotive&#146;s electrical
distribution system capabilities with our existing interior
capabilities to design, develop and supply fully-integrated
modular assemblies, such as fully-integrated instrument panels or
&#147;cockpits,&#148; overhead systems and door panels.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal products fall into the following categories:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Seat Systems. </I>The seat system business
consists of the manufacture, assembly and supply of vehicle
seating requirements. Seat systems typically represent
approximately 50% of the cost of the total automotive interior.
We produce seat systems for automobiles and light trucks that are
fully-assembled and ready to install. Seat systems are fully
assembled seats, designed to achieve maximum passenger comfort by
adding a wide range of manual and power features such as lumbar
supports, cushion and back bolsters and leg and thigh supports.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of our product technology and product design
strengths, we have been a leader in incorporating convenience
features and safety improvements into seat designs as well as in
developing methods to reduce our customers&#146; costs throughout
the automotive interior. In 1998, we adopted a new methodology
for developing automotive interiors,
&#147;People-Vehicle-Interface&#148; or PVI Method&#153;. PVI
Method&#153; is the innovation development discipline that we use
to understand what consumers really want inside their vehicles,
while simultaneously developing automotive interiors that meet
both federal safety standards and customer requirements.
Additionally, we are producing a ventilated seat for Saab, which
draws heat and moisture away from the seat with fans that are
embedded in the seat cushions. We have also increased production
of our new integrated restraint seat system, which improves
occupant comfort and convenience. Exclusive to Lear, this

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<DIV align="left">
patented seating concept uses a special ultra high-strength steel
tower, a blow-molded seat back frame and a split-frame design to
improve occupant comfort and convenience.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our position as a market leader in seat systems is largely
attributable to seating programs on new vehicle models launched
in the past ten years. We are currently working with customers in
the development of a number of seat system products to be
introduced by automotive manufacturers in the future.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Electrical Distribution Systems and Electrical/
Electronic Products.</I> The function of a basic automotive
electrical distribution system is to provide the electrical
interconnections necessary to convey or distribute electrical
power and signals. The distribution of such power and signals is
essential for activating, controlling, operating and/or
monitoring electric devices and systems throughout the vehicle.
Electrical distribution systems consist primarily of wire harness
assemblies, terminal and connector products, fuse boxes and
junction boxes. This electrical network extends to virtually
every part of a vehicle, including powered comfort/convenience
accessories, lighting and signaling, heating and cooling systems,
powertrain, chassis, safety restraint systems, audio systems and
other devices. With the acquisition of UT Automotive, we have
the capability to design and supply complete electrical
distribution systems on a global basis.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The electrical/electronic products group consists of two related
groups of products: automotive electrical switches and automotive
electronic controls. The electrical switches group includes
products for the activation and control of lighting,
wiper/washers, turn signals, ignition, powered accessories
including windows, door locks, seats and mirrors, heating,
ventilation, air conditioning and keypad entry. The switch
products include designs for both low- and high-current, using a
variety of activation methods, including rotary, slide,
push-pull, momentary and latching. The switch products
increasingly focus on ergonomic and aesthetic considerations. The
electronic controls group includes a variety of body controllers
for the electronic control of many comfort and convenience
features, including memory functions and timer units. With the
acquisition of UT Automotive, we also acquired a significant
industry presence in remote keyless entry products employing
advanced encryption technology.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Electrical and electronic content per vehicle continues to grow
as the installation of powered accessories and new features such
as on-board phones and navigation systems increases. In addition,
many vehicle functions which had previously been hydraulically
or mechanically activated are being replaced by electrical/
electronic activation. This has resulted in a higher number of
circuits and switches and electromechanical and electronic
controls on most vehicles. For example, the 1993 top-of-the-line
Ford Explorer had 963&nbsp;electrical circuits, while a
comparable current model has more than&nbsp;1,800. With the
acquisition of UT Automotive, we believe that we are
well-positioned to capitalize on this trend by integrating UT
Automotive&#146;s broad range of electrical/electronic products
into our line of interior products and systems.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The automotive electrical distribution systems and electrical/
electronic products businesses have been rapidly evolving in
recent years as electronic functionality is added to traditional
wiring systems. This progression has involved the integration of
existing products as well as the development of new products,
competencies and technologies. We believe that the increase in
the content and complexity of electrical and electronic
components requires a broader, overall design perspective. This
shift in design philosophy is described as &#147;moving from the
wire itself to the wire ends,&#148; reflecting a view that design
should include both the wiring systems and the electromechanical
and electronic devices to which they are connected. We believe
that the migration from electrical distribution systems to
electrical and electronic distribution systems will both
facilitate the integration of wiring, electronics and switching/
control products within the overall electrical architecture of a
vehicle and generate significant design benefits for our
customers. For example, we expect this integrated approach to
help designers optimize the number of circuits and electronic
control modules/ microprocessors and to help program managers
validate the performance of all of the individual components in a
vehicle&#146;s electronic systems.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The migration from electrical distribution systems to electrical
and electronic distribution systems can be seen in a number of
new and next generation products. For example, our smart junction
box combines traditional junction box function with electronic
capabilities. Unlike earlier junction boxes which provided the
mechanical interconnection of electrical wire harnesses, smart
junction boxes can incorporate electronic

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<DIV align="left">
control functions traditionally located elsewhere in the vehicle.
We are also positioned to participate in the development of
advanced vehicle operating systems. Advanced vehicle operating
systems will combine technologies ranging from computer-based
communication to entertainment and traffic management.
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Flooring and Acoustic Systems. </I>Flooring
systems consist both of carpet and vinyl products, molded to fit
precisely the front and rear passenger compartments of cars and
trucks, and accessory mats. While carpet floors are used
predominately in passenger cars and trucks, vinyl floors, because
of their better wear and maintenance characteristics, are used
in commercial and fleet vehicles. We are one of the largest
independent suppliers of vinyl automotive flooring systems in
North America and one of the few suppliers of both carpet and
vinyl automotive flooring systems. With the Masland acquisition,
we acquired Maslite&#153;, a material that is 40% lighter than
vinyl, which has replaced vinyl accessory mats on selected
applications.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The automotive flooring system is a multi-purpose system.
Performance is based on the correct selection of materials to
achieve an attractive, quiet and durable interior compartment.
Automotive carpet requirements are more stringent than home and
office carpet requirements. For example, automotive carpet must
provide increased resistance to fading and wear, despite being
lighter in weight than home and office carpet. Our significant
experience in automotive flooring has enabled us to meet these
specialized needs. Automotive flooring systems generally consist
of tufted carpet with a thermoplastic backcoating which, when
heated, allows the carpet to be fitted precisely to the interior
of the vehicle. Additional insulation materials are added to
provide resistance to noise, vibration and harshness. Automotive
flooring systems are complex and are based on sophisticated
designs, which use specialized materials to achieve the desired
visual, acoustic and heat management requirements of the
automotive interior.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our primary acoustic product, after automotive flooring systems,
is the dash insulator. The dash insulator separates the passenger
compartment from the engine compartment and is the primary
component preventing engine noise and heat from entering the
passenger compartment. Our ability to produce both the dash
insulator and the automotive flooring system enables us to
accelerate the design process and supply an integrated system. We
believe that automotive manufacturers, recognizing the cost and
quality advantages of producing the dash insulator and the
automotive flooring system as an integrated system, will
increasingly seek suppliers to coordinate the design, development
and manufacture of the entire automotive flooring and acoustic
system.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Door Panels. </I>Door panels consist of several
component parts that are attached to a base molded substrate by
various methods. Specific components include vinyl or
cloth-covered appliqu&#233;s, armrests, radio speaker grilles,
map pocket compartments, carpet and sound-reducing insulation. In
addition, door panels often incorporate automotive electrical
distribution systems and electrical/ electronic products,
including switches and wire harnesses for the control of power
seats, windows, mirrors and door locks. Upon assembly, each
component must fit precisely and must match the color of the base
substrate. In 1997, we introduced the One-Step&#153; door and
One-Step&#153;liftgate, which consolidate all internal
mechanisms, including glass, window regulators and latches,
providing customers with a fully-assembled, higher-quality
product at a lower price. The One-Step&#153; door and
One-Step&#153; liftgate can be shipped to automotive
manufacturers fully assembled, tested and ready to install. To
date, we have been asked to supply the One-Step&#153; liftgate on
a future model, and we believe that both the One-Step&#153; door
and One-Step&#153; liftgate offer us significant opportunities
to capture a major share of the estimated $9&nbsp;billion modular
door market.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Instrument Panels. </I>The instrument panel is a
complex system of coverings, foams, plastics and metals designed
to house various components and act as a safety device for the
vehicle occupants. Specific components of the instrument panel
include the gage cluster, the heating, venting and air
conditioning module, air distribution ducts, air vents, cross car
structure, glove compartment assembly, electrical/ electronic
components, wire harness, radio system and driver and passenger
safety systems. As the primary occupant focal point of the
vehicle interior, the instrument panel is designed to be
aesthetically pleasing, while also housing various components.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Over the past several years, the automotive industry has seen a
rapid increase in the complexity of instrument panels. We believe
automotive manufacturers will begin to require suppliers to
produce integrated

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<DIV align="left">
instrument panels that combine electrical/ electronic products
with other traditional instrument panel components. This movement
will provide suppliers with the opportunity to capitalize on the
ability of instrument panels to incorporate more higher-margin,
value-added components, such as telecommunications and
navigational equipment. In addition to being responsible for the
overall design, integration and assembly of the cockpit system,
we will be able to supply the basic instrument panel, the
structural cross vehicle beam, numerous molded parts and a
variety of electrical/ electronic components. We believe that our
strength in designing and manufacturing automotive electrical
distribution systems and electrical/ electronic products will
enhance our position as a leading supplier of instrument panels
and better position us as automotive manufacturers continue to
demand more complex integrated systems.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Another trend in the instrument panel segment concerns safety
issues in air bag technologies. Through our research and
development efforts, we intend to introduce cost effective,
integrated, seamless airbag covers which increase occupant
safety. Future trends in the instrument panel segment will
continue to focus on safety with the introduction of innovations
such as knee restraints and energy-absorbing substructures.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Headliners. </I>Headliners consist of a substrate
as well as a finished interior layer made of a variety of
fabrics and materials. While headliners are an important
contributor to interior aesthetics, they also provide insulation
from road noise and can serve as carriers for a variety of other
components, such as visors, overhead consoles, grab handles, coat
hooks, electrical wiring, speakers, lighting and other
electrical/ electronic products. As electrical/ electronic
content available in vehicles has increased, headliners have
emerged as an important carrier of technology, since electronic
features ranging from garage door openers to lighting systems are
often optimally situated in the headliner system. The UT
Automotive acquisition provided us with the technical
capabilities and electrical/ electronic products to take
advantage of the significant integration opportunities that exist
in the headliner market.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The headliner market is highly fragmented, with no dominant
independent supplier. As automotive manufacturers continue to
seek ways to improve vehicle quality and simultaneously reduce
costs, we believe that headliners will increasingly be outsourced
to suppliers, such as Lear, with extensive technological and
systems integration capabilities. In addition, as with door
panels and instrument panels, the ability of headliners to
incorporate more components, provides us with the opportunity to
increase the number of high margin, value-added products we
supply to automotive manufacturers.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Component Products. </I>In addition to the
interior systems and other products described above, we are able
to supply a variety of interior trim, blow-molded plastic parts
and other automotive components.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We produce seat covers for integration into our own seat systems
and for delivery to external customers. Our major external
customers for seat covers are other independent seat system
suppliers as well as automotive manufacturers. The expansion of
our seat cover business has provided us with better control over
the costs and quality of one of the critical components of a seat
system. Typically, seat covers comprise approximately 30% of the
aggregate cost of a seat system.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We produce steel, aluminum, magnesium and composite seat frames
for passenger cars and light trucks. The manufacture of seat
frames must meet strict customer and government-specified safety
standards. Our seat frames are either delivered to our own
plants, where they are used in the manufacture of complete seat
systems that are sold to automotive manufacturers, or delivered
to other independent seat system suppliers where they are used in
the manufacture of complete seat systems.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We also produce a variety of interior trim products, such as
pillars, cowl panels, scuff plates, trunk liners, quarter panels
and spare tire covers, as well as blow-molded plastic products,
such as fluid reservoirs, vapor canisters and duct systems.

<P align="left"><B>Manufacturing</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Most of our manufacturing facilities use just-in-time
manufacturing techniques. Most of our seating-related products
and many of our other interior products are delivered to the
automotive manufacturers on a just-in-time basis. The
just-in-time concept, first broadly used by Japanese automotive
manufacturers, is the cornerstone of our manufacturing and supply
strategy. This strategy involves many of the principles of the

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<DIV align="left">
Japanese system but was adapted for compatibility with the
increased volume requirements and geographic distances of the
North American market. We first developed just-in-time operations
in the early 1980&#146;s at our seat frame manufacturing plants
in Morristown, Tennessee and Kitchener, Ontario, Canada. These
plants had previously operated under traditional manufacturing
practices, resulting in relatively low inventory turnover rates,
significant scrap and rework, a high level of indirect labor
costs and long production set-up times. As a result of
just-in-time manufacturing techniques, we have been able to
consolidate plants, increase capacity and significantly increase
inventory turnover, quality and productivity.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The just-in-time principles were later applied to our growing
seat system business and have now evolved into sequential parts
delivery principles. Our seating plants are typically no more
than 30&nbsp;minutes or 20&nbsp;miles from our customers&#146;
assembly plants and are able to manufacture seats for delivery to
the customers&#146; facilities in as little as 90&nbsp;minutes.
Orders for our seats are received on a weekly basis, pursuant to
blanket purchase orders for annual requirements. These orders
detail the customers&#146; needs for the following week.
Additionally, personnel at our locations and personnel at the
customers&#146; plants keep production current with the
customers&#146; needs via constant electronic communications.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As we have expanded our product line to include total automotive
interiors, we have also expanded our just-in-time facility
network. Our strategy is to leverage our just-in-time seat system
facilities by moving the final assembly and sequencing of other
interior components from our centrally-located facilities to our
just-in-time facilities.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A description of the manufacturing processes for each of our
product categories is set forth below.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Seat Systems. </I>Seat assembly techniques fall
into two major categories: traditional assembly methods, in which
fabric is affixed to the frame using Velcro, wire or other
material; and more advanced bonding processes. The principal
bonding technique involves our patented SureBond&#153; and
DryBond&#153; processes, in which fabric is affixed to the
underlying foam padding using adhesives. The SureBond&#153; and
DryBond&#153; processes have several major advantages when
compared to traditional methods, including design flexibility,
increased quality, lower cost and improved acoustical
performance. The SureBond&#153; and DryBond&#153; processes,
unlike alternative bonding processes, result in a more
comfortable seat in which air circulates freely. Moreover, the
SureBond&#153; and DryBond&#153; processes are reversible, so
that improperly installed seat covers can be removed and properly
installed with minimal materials cost. In addition, the
SureBond&#153; and DryBond&#153; processes are not capital
intensive when compared to competing bonding technologies.
Approximately one-fourth of our seats are manufactured using the
SureBond&#153; and DryBond&#153; processes.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each seat component&#146;s requirement is monitored on a daily
basis. This allows the plant to minimize production space but
also requires precise forecasts of the day&#146;s output. Seats
are assembled in modules, then tested and packaged for shipment.
We operate a specially-designed trailer fleet that accommodates
the off-loading of vehicle seats at the customers&#146; assembly
plants.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We obtain steel, aluminum and foam chemicals used in our seat
systems from several producers under various supply arrangements.
These materials are readily available. Leather, fabric and
certain purchased components are generally purchased from various
suppliers under contractual arrangements usually lasting no
longer than one year. Some of the purchased components are
obtained from our own customers.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Electrical Distribution Systems and Electrical/
Electronic Products.</I> Electrical distribution systems are
networks of wiring and associated control devices that route
electrical power and signals throughout the vehicle. Wire harness
assemblies consist of raw, coiled wire that is automatically cut
to length and terminated. Individual circuits are then assembled
together on a jig or table, inserted into connectors and wrapped
or taped to form the harness assemblies.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cell-based manufacturing techniques are extensively applied to
manufacture products on a just-in-time basis. Materials are
purchased, with the exception of a portion of the connectors that
are produced in-house. The assembly process is labor intensive,
and therefore, production is performed in low labor rate sites in
Mexico, the Philippines, Europe and North Africa.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of the principle components attached to the wire harnesses
that are manufactured by Lear include junction boxes, electronic
control modules and switches. Junction boxes are manufactured in
Europe and North America with a proprietary, capital intensive
assembly process that utilizes specially-produced, printed
circuit boards, purchased from selected suppliers. Electronic
modules are assembled using high-speed surface mount placement
equipment in Europe and North America. Custom-designed switches
are assembled from electrical, mechanical and decorated plastic
parts purchased in the United States, Mexico and Europe, using a
combination of manual and automated assembly and test methods.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Management believes that technology trends will result in
electronics and other products being combined to create
multiplexed electrical distribution systems, smart junction
boxes, mechatronic switches and integrated interior modules. Lear
is well-positioned to take advantage of these trends.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Flooring and Acoustics Systems. </I>Small
&#147;focused&#148; facilities are dedicated to specific groups
of customers and are strategically located near their production
facilities. This proximity improves our responsiveness to our
customers and the speed of product delivery, performed on a
just-in-time basis, to our customers&#146; assembly lines. Our
manufacturing operations are complemented by our research and
development efforts, which have led to the development of a
number of proprietary products, such as our EcoPlus&#153;
recycling process, Maslite&#153;, a lightweight proprietary
material used in the production of accessory mats and as a vinyl
floor alternative, and Coreweb&#153;, a unique construction
resulting in a lighter-weight and acoustically-optimized system.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Door Panels/Headliners. </I>We use numerous
molding, bonding, trimming and finishing manufacturing processes
in our door panel and headliner production. The wide variety of
manufacturing processes helps us to continue to satisfy a broad
range of customers&#146; cost and functionality specifications.
Our experience in producing automotive interior products for such
a vast array of applications enhances our ability to provide
total automotive interior solutions. To further support these
efforts, we are beginning to employ many of the same just-in-time
principles used at our seating facilities.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The core technologies used in our interior trim systems include
injection molding, low-pressure injection molding, rotational
molding and urethane foaming. In addition, we employ compression
molding of Wood-Stock&#153;, a process which combines
polypropylene and wood flour, glass-reinforced urethane and a
proprietary headliner process. One element of our strategy is to
focus on more complex, value-added integrated systems. We deliver
these integrated systems at attractive prices to our customers,
providing certain services, such as design, engineering and
sub-assembly, with a continuing focus on cost efficiencies. The
principal purchased components used in our interior trim systems
are polyethylene and polypropylene resins, which are generally
purchased under long-term agreements and are available from
multiple suppliers. We are continuing to develop recycling
methods, in light of future environmental requirements, to
maintain our competitive position in this segment.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The combined pressures of cost reduction and fuel economy have
caused automotive manufacturers to concentrate their efforts on
developing and employing lower cost, lighter materials. As a
result, plastic content in cars and light trucks has grown
significantly. Increasingly, automotive content requires large
plastic injection-molded assemblies for both the interior and
exterior. Plastics are now commonly used in such nonstructural
components as interior and exterior trim, door panels, instrument
panels, grilles, bumpers, duct systems, taillights and fluid
reservoirs. For interior trim applications, substitution of
plastics for other materials is largely complete, and little
growth through substitution is expected. However, further
advances in injection molding technologies are improving the
performance and appearance of parts molded in reinforced
thermoplastics.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Instrument Panels. </I>Our in-house process
capabilities for producing instrument panels include injection
molding, vacuum forming and various finishing methods. Our foil
and foam capabilities, in which molded vinyl is bonded to a
plastic substrate using an expandable foam, are used throughout
the world. The wide variety of manufacturing processes helps us
to continue to satisfy a broad range of customers&#146; cost and
functionality specifications. We are continuing to develop
recycling methods, in light of future environmental requirements,
to reduce costs and increase our presence in this segment.</TD>
</TR>

</TABLE>

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<P align="left"><B>Customers</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We serve the worldwide automotive and light truck market, which
produces over 50&nbsp;million vehicles annually. Our automotive
manufacturer customers currently include:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="20%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="24%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="26%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="21%">&nbsp;</TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
&#149;&nbsp;Ford</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;General Motors</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;DaimlerChrysler</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Fiat</FONT></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
&#149;&nbsp;Volkswagen</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;BMW</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Volvo</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Saab</FONT></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
&#149;&nbsp;Toyota</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Honda</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Mitsubishi</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Mazda</FONT></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
&#149;&nbsp;Subaru</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Nissan</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Isuzu</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Peugeot</FONT></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
&#149;&nbsp;Porsche</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Renault</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Gaz</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Mahindra&nbsp;&#38; Mahindra</FONT></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
&#149;&nbsp;Suzuki</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Hyundai</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Daewoo</FONT></TD>
<TD></TD>
<TD align="left" valign="bottom"><FONT size="2">
&#149;&nbsp;Jaguar</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended December&nbsp;31, 1999, Ford and General
Motors, the two largest automotive and light truck manufacturers
in the world, accounted for approximately 27% and 29%,
respectively, of our net sales. For additional information
regarding customers and foreign and domestic sales and
operations, see Note&nbsp;15, &#147;Segment Reporting,&#148; to
our 1999 consolidated financial statements included in this
Report.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the past ten years, in the course of retooling and
reconfiguring plants for new models and model changeovers,
certain automotive manufacturers have eliminated the production
of seat systems and other automotive interior systems and
components from certain of their facilities, thereby committing
themselves to purchasing these items from outside suppliers.
During this period, we became a supplier of these products for a
significant number of new models, many on a just-in-time basis.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The purchase of seat systems and other automotive interior
systems and components from full-service independent suppliers
such as Lear has allowed our customers to realize a competitive
advantage as a result of:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; a reduction in net overhead expenses and capital
investment due to the availability of significant floor space for
the expansion of other manufacturing operations;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; the elimination of working capital and personnel
costs associated with the production of automotive interior
systems by the automotive manufacturers;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; a reduction in labor costs since suppliers such as
Lear generally have lower direct labor and benefit
rates;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; a reduction in transaction costs through the
utilization of a limited number of sophisticated automotive
system suppliers instead of numerous individual automotive
component suppliers.</TD>
</TR>

</TABLE>

<P align="left">
In addition, we offer improved quality and cost efficiencies to
our customers through continuous Lear-initiated design
improvements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to reduce our reliance on any one model, we produce
automotive interior systems and components for a broad
cross-section of both new and more established models. Our sales
for the year ended December&nbsp;31, 1999 were comprised of the
following vehicle categories: 39%&nbsp;light truck; 26% mid-size;
18%&nbsp;luxury/sport; 14%&nbsp;compact; and 3%&nbsp;full-size.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because of the economic benefits inherent in outsourcing to
suppliers such as Lear and the costs associated with reversing a
decision to purchase seat systems and other automotive interior
systems and components from an outside supplier, we believe that
automotive manufacturers&#146; commitment to purchasing seat
systems and other automotive interior systems and components from
outside suppliers, particularly on a just-in-time basis, will
increase. However, under the labor contracts currently in effect
in the United States and Canada for General Motors, Ford and
DaimlerChrysler, in order for the automotive manufacturer to
outsource components that it currently produces, the automotive
manufacturer must first notify the United Auto Workers
(&#147;UAW&#148;) or the Canadian Auto Workers (&#147;CAW&#148;)
of such intention. If the UAW or the CAW objects to the proposed
outsourcing, an agreement will have to be reached between the UAW
or the

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<DIV align="left">
CAW and the automotive manufacturer. Factors that will normally
be taken into account by the UAW, the CAW and the automotive
manufacturer include:
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; whether the proposed new supplier is technologically
more advanced than the automotive manufacturer;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; whether the new supplier is unionized;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; whether cost benefits exist;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; whether the automotive manufacturer will be able to
reassign union members whose jobs are being displaced to other
jobs within the same factories.</TD>
</TR>

</TABLE>

<P align="left">
As part of our agreement with General Motors, we operate our
Rochester Hills, Michigan and Wentzville, Missouri facilities
with General Motors&#146; employees and reimburse General Motors
for the wages of such employees on the basis of our employee wage
structure. We enter into these arrangements to enhance our
relationship with our customers. As of January&nbsp;1, 1998, the
General Motors&#146; employees working at our Lordstown, Ohio
facility under this agreement became Lear employees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
General Motors and DaimlerChrysler have experienced work
stoppages over the past few years related to the outsourcing of
automotive components. These work stoppages halted the production
of certain vehicle models and adversely affected our operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The contracts with our major customers generally provide for an
annual productivity price reduction, as well as, in some
instances, the recovery of increases in material and labor costs.
Historically, cost reductions through design changes, increased
productivity and similar programs with our suppliers have
generally offset changes in selling prices, although no
assurances can be given that we will be able to achieve such cost
reductions in the future.

<P align="left"><B>Marketing and Sales</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We market our products by maintaining strong customer
relationships, developed through:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; extensive technical and product development
capabilities;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; reliable delivery of high quality products;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; strong customer service;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; innovative new products;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; a competitive cost structure.</TD>
</TR>

</TABLE>

<P align="left">
Close personal communications with the automotive manufacturers
is an integral part of our marketing strategy. Recognizing this,
we are organized into independent divisions, each with the
ability to focus on its customer and programs and each having
complete responsibility for the product, from design to
installation. By moving the decision-making process closer to the
customer and by instilling a philosophy of &#147;cooperative
autonomy,&#148; we are more responsive to and have further
strengthened our relationships with our customers. Automotive
manufacturers have generally continued to reduce the number of
their suppliers, as part of a strategy to purchase the automotive
interior systems rather than the individual automotive
components. This process favors suppliers such as Lear with
established ties to the automotive manufacturers and the
demonstrated ability to adapt to the new competitive environment
in the automotive industry.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our sales are originated almost entirely by our sales staff. This
marketing effort is augmented by design and manufacturing
engineers who work closely with the automotive manufacturers from
the preliminary design to the manufacture and the supply of the
automotive interior systems or components. Automotive
manufacturers have increasingly looked to suppliers such as Lear
to assume responsibility for introducing product innovation,
shortening the development cycle of new models, decreasing
tooling investment and labor costs, reducing the number of costly
design changes in the early phases of production and improving
automotive interior comfort and functionality. Once we are
engaged to develop the design for the automotive

<P align="center">12

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<DIV align="left">
interior system or component of a specific vehicle model, we are
also generally engaged to supply these items when the vehicle
goes into production. We have devoted substantial resources
toward improving our technical capabilities and developing
advanced technology centers in the United States and in Europe.
We have also developed full-scope engineering capabilities,
including all aspects of safety and functional testing, acoustics
testing and comfort assessment. In addition, we have established
numerous product engineering sites in close proximity to our
automotive manufacturer customers to support our customer
relationships as well as design activity. Finally, we have
implemented a program of dedicated teams consisting of seat
system and interior trim personnel who are able to meet all of a
customer&#146;s interior needs. These teams provide a single
interface for our customers and help avoid duplication of sales
and engineering efforts.
</DIV>

<P align="left"><B>Technology</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Advanced technology development is conducted at our advanced
technology center in Southfield, Michigan and at twenty-seven
worldwide product engineering centers. At these centers, we
engineer our products to comply with applicable safety standards,
meet quality and durability standards, respond to environmental
conditions and conform to customer requirements. We also have
state-of-the-art acoustics testing and instrumentation and data
analysis capabilities.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that in order to effectively develop total automotive
interior systems, it is necessary to integrate the engineering,
research, design, development and validation of all interior
subsystems. Accordingly, we expanded our advanced technology
center at our world headquarters in Southfield, Michigan.
Completed in 1999, this center gives us the distinction of being
the only global automotive supplier with engineering, research,
design, development and validation capabilities for all five
automotive interior systems at one location.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have dedicated, and will continue to dedicate, resources to
research and development in order to maintain our position as a
leading developer of technology in the automotive interior
industry. Research and development costs incurred in connection
with the development of new products and manufacturing methods,
to the extent not recoverable from the customer, are charged to
selling, general and administrative expenses as incurred. Such
costs amounted to approximately $181.2&nbsp;million,
$116.6&nbsp;million and $90.4&nbsp;million for the years ended
December&nbsp;31, 1999, 1998 and 1997, respectively.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have developed a number of designs for innovative interior
features which we have patented, including advances in interior
modularity. Examples include the TransG&#153; headliner system,
the OASys&#153; overhead audio system, the Revolution
Seating&#153; system and the One-Step&#153; door and
One-Step&#153; liftgate modules. In addition, we incorporate many
convenience, comfort and safety features into our interior
designs, including advanced storage systems, overhead integrated
modules, seat integrated restraint systems (3-point and 4-point
belt systems integrated into seats), side impact air bags and
child restraint seats. We continually invest in our
computer-aided-engineering and computer-aided-design/
computer-aided-manufacturing systems. Recent enhancements to
these systems include customer telecommunications and direct
exchange of engineering data with other worldwide divisions via
the establishment of our Virtual Technology Division
(VTD)&nbsp;web site.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have created brand identities which highlight products for our
customers. The Pro-tec brand identifies products optimized for
interior safety; the Sono-tec brand identifies products optimized
for interior acoustics; and the Enviro-tec brand identifies
environmentally friendly products.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have virtually all technologies and manufacturing processes
available for interior trim and under-the-hood applications.
These processes include, among other things, high and low
pressure injection molding, vacuum forming, blow molding, soft
foam molding, heat staking, water jet cutting, vibration welding,
ultrasonic welding and robotic painting. In 1998, two new
processes were developed, hydra-molding and twin-shell molding.
Both of these processes achieve the goals of reduced capital and
cycle time. This wide range of capabilities allows us to assist
our customers in selecting the technologies that are the most
cost effective for each application. Combined with our design and
engineering capabilities and our state-of-the-art technology and
engineering centers, we provide comprehensive support to our
automotive manufacturer customers from product development to
production.

<P align="center">13

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We own one of the few proprietary-design acoustical testing
chambers with four-wheel dynamometers capable of precision
acoustics testing of front, rear and four-wheel drive vehicles.
Together with our custom-designed reverberation room,
computer-controlled data acquisition and analysis capabilities
provide precisely controlled laboratory testing conditions for
sophisticated interior and exterior noise, vibration and
harshness testing of parts, materials and systems, including
powertrain, exhaust and suspension components.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We hold a number of mechanical and design patents covering our
products and have numerous applications for patents currently
pending. In addition, we hold several trademarks relating to
various manufacturing processes. We also license our technology
to a number of seating manufacturers. We continually strive to
identify and implement new technologies for use in the design and
development of our products.

<P align="left"><B>Joint Ventures and Minority Interests</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We pursue attractive joint ventures in order to assist our entry
into new markets, facilitate the exchange of technical
information, expand our product offerings and broaden our
customer base. We currently have thirty-seven joint ventures
located in seventeen countries. Twenty of these joint ventures
are consolidated, and seventeen are accounted for using the
equity method of accounting. In 1999, we acquired interests in
joint ventures in the United States, China and India in
conjunction with our acquisition of UT Automotive. We also
recently announced an agreement with Motorola to form a joint
venture to design integrated automotive interior systems for
Ford. This is an opportunity for us to leverage the strengths and
resources of both companies to create an expanded portfolio of
products and technologies which we believe will enhance our
leadership position in automotive interior system integration.

<P align="left"><B>Competition</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are the leading supplier of automotive interior products with
manufacturing capabilities in all five automotive interior
product groups: seat systems; flooring and acoustic systems; door
panels; headliners; and instrument panels. Within each segment,
we compete with a variety of independent suppliers and automotive
manufacturer in-house operations, primarily on the basis of
cost, product quality and service. Set forth below is a summary
of our primary independent competitors.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Seat Systems. </I>We are one of two primary
independent suppliers in the outsourced North American seat
systems market. Our main independent competitor in North America
is Johnson Controls. Our major independent competitors in Western
Europe are Johnson Controls and Faurecia (headquartered in
France).</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Electrical Distribution Systems and Electrical/
Electronic Products. </I>With the acquisition of UT Automotive,
we became one of the leading independent suppliers of automotive
electrical distribution systems in North America and Europe. Our
major competitors in the electrical distribution systems market
include Delphi, Yazaki and Sumitomo. The automotive
electrical/electronic products industry remains highly
fragmented. Other participants in the automotive
electrical/electronics products industry include Eaton, Tokai
Rika, Kostal, Methode, Pollack, Cherry, Niles, Omron and others.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Flooring and Acoustic Systems. </I>We are one of
the three primary independent suppliers in the outsourced North
American flooring and acoustic systems market. Our primary
independent competitors in North America are Collins&nbsp;&#38;
Aikman and the Magee Carpet Company. Our major independent
competitors in Western Europe include Sommer Allibert Industries,
Emfisint Automotive SA, Radici, Treves ETS and Rieter
Automotive.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#149;&nbsp; <I>Other Interior Systems and Components. </I>Our
major independent competitors in the door panel, instrument panel
and headliner segments include Johnson Controls, Magna
International, Textron, Delphi, Sommer Allibert Industries and a
large number of smaller operations. Visteon is also a major
competitor in this segment.</TD>
</TR>

</TABLE>

<P align="center">14

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<P align="left"><B>Seasonality</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal operations are directly related to the automotive
industry. Consequently, we may experience seasonal fluctuation to
the extent automotive vehicle production slows, such as in the
summer months when plants close for model year changeovers and
vacation. Historically, our sales and operating profit have been
the strongest in the second and fourth calendar quarters. See
Note&nbsp;17, &#147;Quarterly Financial Data,&#148; to our 1999
consolidated financial statements included in this Report.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our cost structure is comprised of a high percentage of variable
costs. We believe that this structure provides us with additional
flexibility during economic cycles.

<P align="left"><B>Employees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, Lear employed approximately 37,000
people in the United States and Canada, 37,000 in Mexico, 35,000
in Europe and 12,000 in other regions of the world. A substantial
number of our employees are members of unions. We have
collective bargaining agreements with several unions including:
the UAW; the CAW; UNITE; the International Brotherhood of
Teamsters, Chauffeurs, Warehousemen and Helpers of America; and
the International Association of Machinists and Aerospace
Workers. Virtually all of our unionized facilities in the United
States and Canada have a separate contract with the union which
represents the workers employed there, with each such contract
having an expiration date independent of our other labor
contracts. The majority of our European and Mexican employees are
members of industrial trade union organizations and
confederations within their respective countries. Many of these
organizations and confederations operate under national
contracts, which are not specific to any one employer. We have
occasionally experienced labor disputes at our plants, none of
which have significantly disrupted production or have had a
material adverse effect on our operations. We have been able to
resolve all such labor disputes and believe relations with our
employees are generally good. In addition, as part of our
long-term agreements with General Motors, we currently operate
two facilities with an aggregate of approximately 600 General
Motors&#146; employees and reimburse General Motors for the wages
of such employees on the basis of our wage structure. See
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&nbsp;&#151; Forward-Looking
Statements.&#148;

<P align="center">15

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<P align="left"><B>Item&nbsp;2&nbsp;&#151; Properties</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, our operations were conducted
through 330&nbsp;facilities, some of which are used for multiple
purposes, including 234&nbsp;manufacturing facilities,
27&nbsp;product engineering centers and 5&nbsp;advanced
technology centers, in 33&nbsp;countries. The remaining
facilities are primarily warehouses. Our world headquarters is
located in Southfield, Michigan. Our facilities range in size
from 1,500&nbsp;square feet to 1,000,000&nbsp;square feet.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No facility is materially underutilized. Of the
330&nbsp;facilities, which include facilities owned by our less
than majority-owned affiliates, 166 are owned and 164 are leased
with expiration dates ranging from 2000 through 2017. We believe
substantially all of our property and equipment is in good
condition and that we have sufficient capacity to meet our
current and expected manufacturing and distribution needs. See
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&nbsp;&#151; Liquidity and
Financial Condition&nbsp;&#151; Cash Flow.&#148;

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents the locations of our facilities:

<DIV align="left">
<B>Argentina</B>
</DIV>

<DIV align="left">
Berazategui
</DIV>

<DIV align="left">
Buenos Aires
</DIV>

<DIV align="left">
Cordoba
</DIV>

<DIV align="left">
Dragui
</DIV>

<DIV align="left">
Ferreira
</DIV>

<DIV align="left">
Pacheco
</DIV>

<DIV align="left">
<B>Australia</B>
</DIV>

<DIV align="left">
Adelaide
</DIV>

<DIV align="left">
Brooklyn
</DIV>

<DIV align="left">
<B>Austria</B>
</DIV>

<DIV align="left">
Koflach
</DIV>

<DIV align="left">
<B>Belgium</B>
</DIV>

<DIV align="left">
Houthalen
</DIV>

<DIV align="left">
<B>Brazil</B>
</DIV>

<DIV align="left">
Betim
</DIV>

<DIV align="left">
Cacapava
</DIV>

<DIV align="left">
Campo Largo
</DIV>

<DIV align="left">
Diadema
</DIV>

<DIV align="left">
Gravatai
</DIV>

<DIV align="left">
Juiz de Flora
</DIV>

<DIV align="left">
Port Alegre
</DIV>

<DIV align="left">
<B>Canada</B>
</DIV>

<DIV align="left">
Ajax
</DIV>

<DIV align="left">
Kitchener
</DIV>

<DIV align="left">
Maple
</DIV>

<DIV align="left">
Mississauga
</DIV>

<DIV align="left">
Oakville
</DIV>

<DIV align="left">
St. Thomas
</DIV>

<DIV align="left">
Whitby
</DIV>

<DIV align="left">
Windsor
</DIV>

<DIV align="left">
Woodstock
</DIV>

<DIV align="left">
<B>China</B>
</DIV>

<DIV align="left">
Nanchang
</DIV>

<DIV align="left">
Shanghai
</DIV>

<DIV align="left">
Wanchai
</DIV>

<DIV align="left">
Wuhan
</DIV>

<DIV align="left">
<B>Czech Republic</B>
</DIV>

<DIV align="left">
Prestice
</DIV>

<DIV align="left">
<B>England</B>
</DIV>

<DIV align="left">
Alfredon
</DIV>

<DIV align="left">
Basildon
</DIV>

<DIV align="left">
Bicester
</DIV>

<DIV align="left">
Coventry
</DIV>

<DIV align="left">
Dunton
</DIV>

<DIV align="left">
Middlemarch
</DIV>

<DIV align="left">
Nottingham
</DIV>

<DIV align="left">
Shepperton
</DIV>

<DIV align="left">
Tamworth
</DIV>

<DIV align="left">
Tipton
</DIV>

<DIV align="left">
<B>France</B>
</DIV>

<DIV align="left">
Garches
</DIV>

<DIV align="left">
Guipry
</DIV>

<DIV align="left">
Meaux
</DIV>

<DIV align="left">
Offranville
</DIV>

<DIV align="left">
<B>Germany</B>
</DIV>

<DIV align="left">
Besigheim
</DIV>

<DIV align="left">
Boblingen
</DIV>

<DIV align="left">
Bremen-Mahndorf
</DIV>

<DIV align="left">
Ebersberg
</DIV>

<DIV align="left">
Eisenach
</DIV>

<DIV align="left">
Enseldorf
</DIV>

<DIV align="left">
Gustavsburg
</DIV>

<DIV align="left">
Ingolstadt
</DIV>

<DIV align="left">
Koln
</DIV>

<DIV align="left">
Kronach
</DIV>

<DIV align="left">
Munich
</DIV>

<DIV align="left">
Plattling
</DIV>

<DIV align="left">
Quakenbruck
</DIV>

<DIV align="left">
Rietberg
</DIV>

<DIV align="left">
Russelsheim
</DIV>

<DIV align="left">
Saarlouis
</DIV>

<DIV align="left">
Sulzbach
</DIV>

<DIV align="left">
Wackersdorf
</DIV>

<DIV align="left">
Wolfsburg
</DIV>

<DIV align="left">
<B>Honduras</B>
</DIV>

<DIV align="left">
Choloma Cortez
</DIV>

<DIV align="left">
<B>Hungary</B>
</DIV>

<DIV align="left">
Godollo
</DIV>

<DIV align="left">
Gyonygos
</DIV>

<DIV align="left">
Gyor
</DIV>

<DIV align="left">
Mor
</DIV>

<DIV align="left">
<B>India</B>
</DIV>

<DIV align="left">
Chenai
</DIV>

<DIV align="left">
Dehli
</DIV>

<DIV align="left">
Gujarat
</DIV>

<DIV align="left">
Mumbai
</DIV>

<DIV align="left">
Nashik
</DIV>

<DIV align="left">
<B>Indonesia</B>
</DIV>

<DIV align="left">
Jakarta
</DIV>

<DIV align="left">
<B>Ireland</B>
</DIV>

<DIV align="left">
Naas
</DIV>

<DIV align="left">
<B>Italy</B>
</DIV>

<DIV align="left">
Caivano
</DIV>

<DIV align="left">
Cassino
</DIV>

<DIV align="left">
Cuneo
</DIV>

<DIV align="left">
Desio
</DIV>

<DIV align="left">
Dronero
</DIV>

<DIV align="left">
Grugliasco
</DIV>

<DIV align="left">
Ipa
</DIV>

<DIV align="left">
Melfi
</DIV>

<DIV align="left">
Orbassano
</DIV>

<DIV align="left">
Pesaro
</DIV>

<DIV align="left">
Pozzilli
</DIV>

<DIV align="left">
Pozzo D&#146;Adda
</DIV>

<DIV align="left">
Protos
</DIV>

<DIV align="left">
Strapazzini
</DIV>

<DIV align="left">
Termini Imerese
</DIV>

<DIV align="left">
Villastellone
</DIV>

<DIV align="left">
<B>Japan</B>
</DIV>

<DIV align="left">
Hiroshima
</DIV>

<DIV align="left">
Nagoya Aichi
</DIV>

<DIV align="left">
Tokyo
</DIV>

<DIV align="left">
<B>Mexico</B>
</DIV>

<DIV align="left">
Chihuahua
</DIV>

<DIV align="left">
Cuautitlan
</DIV>

<DIV align="left">
Fuentes
</DIV>

<DIV align="left">
Hermosillo
</DIV>

<DIV align="left">
Ipasa
</DIV>

<DIV align="left">
Juarez
</DIV>

<DIV align="left">
La&nbsp;Cuesta
</DIV>

<DIV align="left">
Naucalpan
</DIV>

<DIV align="left">
Puebla
</DIV>

<DIV align="left">
Ramos Arizpe
</DIV>

<DIV align="left">
Rio Bravo
</DIV>

<DIV align="left">
Saltillo
</DIV>

<DIV align="left">
San&nbsp;Lorenzo
</DIV>

<DIV align="left">
Santa Catarina
</DIV>

<DIV align="left">
Tlahuac
</DIV>

<DIV align="left">
Toluca
</DIV>

<DIV align="left">
<B>Philippines</B>
</DIV>

<DIV align="left">
Cebu
</DIV>

<DIV align="left">
<B>Poland</B>
</DIV>

<DIV align="left">
Gliwice
</DIV>

<DIV align="left">
Mielec
</DIV>

<DIV align="left">
Myslowice
</DIV>

<DIV align="left">
Plock
</DIV>

<DIV align="left">
Swidnicka
</DIV>

<DIV align="left">
Tychy
</DIV>

<DIV align="left">
<B>Portugal</B>
</DIV>

<DIV align="left">
Povoa de Lanhoso
</DIV>

<DIV align="left">
Setubal
</DIV>

<DIV align="left">
Valongo
</DIV>

<DIV align="left">
<B>Russia</B>
</DIV>

<DIV align="left">
Gaz
</DIV>

<DIV align="left">
<B>Scotland</B>
</DIV>

<DIV align="left">
Washington
</DIV>

<DIV align="left">
<B>Singapore</B>
</DIV>

<DIV align="left">
Singapore
</DIV>

<DIV align="left">
<B>South Africa</B>
</DIV>

<DIV align="left">
Borg-Cedria
</DIV>

<DIV align="left">
Brits
</DIV>

<DIV align="left">
East London
</DIV>

<DIV align="left">
Port Elizabeth
</DIV>

<DIV align="left">
<B>Spain</B>
</DIV>

<DIV align="left">
Avila
</DIV>

<DIV align="left">
Cervera
</DIV>

<DIV align="left">
Coslada
</DIV>

<DIV align="left">
Epila
</DIV>

<DIV align="left">
Pamplona
</DIV>

<DIV align="left">
Roquetes
</DIV>

<DIV align="left">
Valls
</DIV>

<DIV align="left">
Vigo
</DIV>

<DIV align="left">
<B>Sweden</B>
</DIV>

<DIV align="left">
Arendal
</DIV>

<DIV align="left">
Fargelanda
</DIV>

<DIV align="left">
Gnosjo
</DIV>

<DIV align="left">
Goteborg
</DIV>

<DIV align="left">
Ljungby
</DIV>

<DIV align="left">
Tanumshede
</DIV>

<DIV align="left">
Tidaholm
</DIV>

<DIV align="left">
Torslanda
</DIV>

<DIV align="left">
Trollhattan
</DIV>

<DIV align="left">
<B>Thailand</B>
</DIV>

<DIV align="left">
Bangkok
</DIV>

<DIV align="left">
Khorat
</DIV>

<DIV align="left">
Rayong
</DIV>

<DIV align="left">
<B>Tunisia</B>
</DIV>

<DIV align="left">
Tunisie
</DIV>

<DIV align="left">
<B>Turkey</B>
</DIV>

<DIV align="left">
Bursa
</DIV>

<DIV align="left">
<B>United States</B>
</DIV>

<DIV align="left">
Allen Park, MI
</DIV>

<DIV align="left">
Alma, MI
</DIV>

<DIV align="left">
Andrews, IN
</DIV>

<DIV align="left">
Arlington, TX
</DIV>

<DIV align="left">
Atlanta, GA
</DIV>

<DIV align="left">
Auburn Hills, MI
</DIV>

<DIV align="left">
Bay City, MI
</DIV>

<DIV align="left">
Berne, IN
</DIV>

<DIV align="left">
Bourbon, IN
</DIV>

<DIV align="left">
Bowling Green, OH
</DIV>

<DIV align="left">
Bridgeton, MO
</DIV>

<DIV align="left">
Byron Center, MI
</DIV>

<DIV align="left">
Carlisle, PA
</DIV>

<DIV align="left">
Coldwater, MI
</DIV>

<DIV align="left">
Columbus, OH
</DIV>

<DIV align="left">
Covington, VA
</DIV>

<DIV align="left">
Culver, IN
</DIV>

<DIV align="left">
Dayton, IN
</DIV>

<DIV align="left">
Dearborn, MI
</DIV>

<P align="center">17

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<B>United States&nbsp;&#151; Continued</B>
</DIV>

<DIV align="left">
Detroit, MI
</DIV>

<DIV align="left">
Duncan, SC
</DIV>

<DIV align="left">
El&nbsp;Paso, TX
</DIV>

<DIV align="left">
Elsie, MI
</DIV>

<DIV align="left">
Edinburgh, IN
</DIV>

<DIV align="left">
Fenton, MI
</DIV>

<DIV align="left">
Flint, MI
</DIV>

<DIV align="left">
Frankfort, IN
</DIV>

<DIV align="left">
Fremont, OH
</DIV>

<DIV align="left">
Grand Rapids, MI
</DIV>

<DIV align="left">
Greencastle, IN
</DIV>

<DIV align="left">
Greensboro, NC
</DIV>

<DIV align="left">
Hammond, IN
</DIV>

<DIV align="left">
Holland, MI
</DIV>

<DIV align="left">
Huron, OH
</DIV>

<DIV align="left">
Huntington, IN
</DIV>

<DIV align="left">
Iowa City, IA
</DIV>

<DIV align="left">
Janesville, WI
</DIV>

<DIV align="left">
Kansas City, MO
</DIV>

<DIV align="left">
Lansing, MI
</DIV>

<DIV align="left">
Lebanon, OH
</DIV>

<DIV align="left">
Lebanon, VA
</DIV>

<DIV align="left">
Lewistown, PA
</DIV>

<DIV align="left">
Liberty, MO
</DIV>

<DIV align="left">
Livonia, MI
</DIV>

<DIV align="left">
Lexington, KY
</DIV>

<DIV align="left">
Lordstown, OH
</DIV>

<DIV align="left">
Louisville, KY
</DIV>

<DIV align="left">
Luray, VA
</DIV>

<DIV align="left">
Madisonville, KY
</DIV>

<DIV align="left">
Manteca, CA
</DIV>

<DIV align="left">
Marlette, MI
</DIV>

<DIV align="left">
Marshall, MI
</DIV>

<DIV align="left">
Melvindale, MI
</DIV>

<DIV align="left">
Mendon, MI
</DIV>

<DIV align="left">
Midland, TX
</DIV>

<DIV align="left">
Morristown, TN
</DIV>

<DIV align="left">
New Castle, DE
</DIV>

<DIV align="left">
Newark, DE
</DIV>

<DIV align="left">
Niles, MI
</DIV>

<DIV align="left">
N. Manchester, IN
</DIV>

<DIV align="left">
Perrysburg, OH
</DIV>

<DIV align="left">
Peru, IN
</DIV>

<DIV align="left">
Plainwell, MI
</DIV>

<DIV align="left">
Plymouth, MI
</DIV>

<DIV align="left">
Pontiac, MI
</DIV>

<DIV align="left">
Port Huron, MI
</DIV>

<DIV align="left">
Riverside, IA
</DIV>

<DIV align="left">
Rochester Hills, MI
</DIV>

<DIV align="left">
Romulus, MI
</DIV>

<DIV align="left">
Roscommon, MI
</DIV>

<DIV align="left">
Sheboygan, WI
</DIV>

<DIV align="left">
Sidney, OH
</DIV>

<DIV align="left">
Southfield, MI
</DIV>

<DIV align="left">
St. Louis, MO
</DIV>

<DIV align="left">
Strasburg, VA
</DIV>

<DIV align="left">
Tampa, FL
</DIV>

<DIV align="left">
Taylor, MI
</DIV>

<DIV align="left">
Toledo, OH
</DIV>

<DIV align="left">
Traverse City, MI
</DIV>

<DIV align="left">
Union City
</DIV>

<DIV align="left">
Walker, MI
</DIV>

<DIV align="left">
Warren, MI
</DIV>

<DIV align="left">
Warren, OH
</DIV>

<DIV align="left">
Wauseon, OH
</DIV>

<DIV align="left">
Wentzville, MO
</DIV>

<DIV align="left">
Winchester, VA
</DIV>

<DIV align="left">
Zanesville, OH
</DIV>

<DIV align="left">
<B>Venezuela</B>
</DIV>

<DIV align="left">
Valencia
</DIV>

<P align="left"><B>Item&nbsp;3&nbsp;&#151; Legal Proceedings</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are involved in certain legal actions and claims arising in
the ordinary course of business. We do not believe that any of
the litigation in which we are currently engaged, either
individually or in the aggregate, will have a material adverse
effect on our business, consolidated financial position or future
results of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to local, state, federal and foreign laws,
regulations and ordinances, which govern activities or operations
that may have adverse environmental effects and which impose
liability for the costs of cleaning up certain damages resulting
from past spills, disposal or other releases of hazardous wastes
and environmental compliance. Our policy is to comply with all
applicable environmental laws and to maintain procedures to
ensure compliance. However, we have been, and in the future may
become, the subject of formal or informal enforcement actions or
procedures. See &#147;Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations&nbsp;&#151;
Environmental Matters.&#148;

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have been named as a potentially responsible party or are
voluntarily engaged in the cleanup of hazardous wastes at certain
sites owned, leased or operated by us, including certain
properties acquired in the UT Automotive acquisition. Certain
present and former properties of UT Automotive are subject to
environmental liabilities which may be significant. We obtained
certain agreements and indemnities with respect to possible
environmental liabilities from United Technologies Corporation in
connection with our acquisition of UT Automotive. While we do
not believe that the environmental liabilities associated with
our properties will have a material adverse effect on our
business, consolidated financial position or results of future
operations, no assurances can be given in this regard.

<P align="left"><B>Item&nbsp;4&nbsp;&#151; Submission of Matters to a Vote of
Security Holders</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No matters were submitted to a vote of security holders during
the fourth quarter of 1999.

<P align="center">18

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "EXECUTIVE OFFICERS OF THE REGISTRANT" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center"><B>EXECUTIVE OFFICERS OF THE REGISTRANT</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to General Instruction of G(3) of Form&nbsp;10-K, the
following information is included as an unnumbered Item in
Part&nbsp;I of the Report in lieu of being included in our Proxy
Statement for our Annual Meeting of Stockholders to be held on
May&nbsp;11, 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the names, ages and positions of
our executive officers. Each executive officer is elected
annually by our Board and serves at the pleasure of our Board and
our Chief Executive Officer.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="45%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="45%">&nbsp;</TD>
</TR>

<TR>
<TD align="center" nowrap><FONT size="2"><B>Name</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Age</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>Position</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Randall&nbsp;J. Carron</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">44</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Senior Vice President and President&nbsp;&#151; International
Operations</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Douglas&nbsp;G. DelGrosso</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">38</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Senior Vice President and President&nbsp;&#151; North American
and South American Operations</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Charles&nbsp;E. Fisher</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">46</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Vice President and President&nbsp;&#151; Ford Division</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Roger&nbsp;A. Jackson</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">53</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Senior Vice President&nbsp;&#151; Human Resources</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Joseph&nbsp;F. McCarthy</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">56</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Vice President, Secretary and General Counsel</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Robert&nbsp;E. Rossiter</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">54</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
President and Chief Operating Officer and Director</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Louis&nbsp;R. Salvatore</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">44</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Vice President and President&nbsp;&#151; DaimlerChrysler Division</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Donald&nbsp;J. Stebbins</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">42</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Senior Vice President and Chief Financial Officer</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
James&nbsp;H. Vandenberghe</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Vice Chairman of the Board</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Kenneth&nbsp;L. Way</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">60</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Chairman of the Board and Chief Executive Officer</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Paul&nbsp;J. Zimmer</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">41</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Vice President and President&nbsp;&#151; GM Division</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth below is a description of the business experience of
each of our executive officers.

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="24%"></TD>
<TD width="1%"></TD>
<TD width="75%"></TD>
</TR>

<TR>
<TD valign="top">
<I>Randall&nbsp;J. Carron:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Carron is our Senior Vice President and
President&nbsp;&#151; International Operations, a position he has
held since May 1999. Previously, he was our Vice President and
President&nbsp;&#151; APO and ISG Operations (Europe) since
December 1998, our President &nbsp;&#151; Far Eastern Operations
since May 1997, our Vice President Operations&nbsp;&#151; GM
Division since April 1997 and our Vice President
Sales&nbsp;&#151; GM Division since November 1995. Mr.&nbsp;
Carron served as our Director of Sales&nbsp;&#151; GM Business
Unit from February 1994 to November 1995 and as our Sales
Manager&nbsp;&#151; GM Business Unit from April 1993 to February
1994.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Douglas G. DelGrosso:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;DelGrosso is our Senior Vice President and
President&nbsp;&#151; North American and South American
Operations, a position he has held since May 1999. Previously, he
was our Senior Vice President&nbsp;&#151; Interior Systems Group
and Seat Trim Division since January 1999, our Vice President
and President&nbsp;&#151; GM Division since May 1997 and our Vice
President and President&nbsp;&#151; Chrysler Division since
December 1995. Mr.&nbsp;DelGrosso served as Vice President
Operations&nbsp;&#151; GM Business Unit from April 1995 to
December 1995 and as Director Engineering&nbsp;&#151; GM Business
Unit from February 1994 to April 1995.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Charles&nbsp;E. Fisher:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Fisher is our Vice President and President&nbsp;&#151;
Ford Division, a position he has held since January 1999.
Previously, he was our Vice President and President&nbsp;&#151;
Chrysler Division since May 1997. Mr.&nbsp;Fisher served as Vice
President&nbsp;&#151; Marketing and Sales from October 1996 to</TD>
</TR>

</TABLE>

<P align="center">19

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="24%"></TD>
<TD width="1%"></TD>
<TD width="75%"></TD>
</TR>

<TR>
<TD valign="top">
</TD>
<TD></TD>
<TD valign="top">
May 1997 and as Vice President&nbsp;&#151; Purchasing from May
1989 to September 1996.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Roger&nbsp;A. Jackson:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Jackson is our Senior Vice President&nbsp;&#151; Human
Resources, a position he has held since October 1995. Previously,
he served as Vice President&nbsp;&#151; Human Resources for
Allen Bradley, a wholly-owned subsidiary of Rockwell
International, since 1991. Mr.&nbsp;Jackson was employed by
Rockwell International or one of its subsidiaries from December
1977 to September 1995.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Joseph&nbsp;F. McCarthy:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;McCarthy is our Vice President, Secretary and General
Counsel, a position that he has held since April 1994.
Previously, he served as Vice President&nbsp;&#151; Legal and
Secretary for both Hayes Lemmerz International,&nbsp;Inc. (f/k/a
Hayes Wheels International,&nbsp;Inc.) and Kelsey-Hayes Company.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Robert&nbsp;E. Rossiter:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Rossiter is our President and Chief Operating Officer, a
position he has held since November 1998, and he has been a
director of Lear since 1988. Mr.&nbsp;Rossiter served as our
Chief Operating Officer&nbsp;&#151; International Operations from
April 1997 to November 1998. He also served as our President
from 1984 until the present and as our Chief Operating Officer
from 1988 to April 1997.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Louis&nbsp;R. Salvatore:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Salvatore is our Vice President and
President&nbsp;&#151; DaimlerChrysler Division, a position he has
held since November 1998. Previously, he was our Vice President
Global Purchasing since September 1996. Mr.&nbsp;Salvatore served
as Vice President of Procurement for MTD Products,&nbsp;Inc. for
2&nbsp;years and as a director for Ford Motor Company for
fourteen years.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Donald&nbsp;J. Stebbins:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Stebbins is our Senior Vice President and Chief
Financial Officer, a position he has held since April 1997.
Previously, he served as our Vice President and Treasurer since
1992.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>James H. Vandenberghe:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Vandenberghe is our Vice Chairman of the Board, a
position he has held since November 1998. Mr.&nbsp;Vandenberghe
has been a director of Lear since 1995. He served as our
President and Chief Operating Officer&nbsp;&#151; North American
Operations from April 1997 to November 1998. He also served as
our Chief Financial Officer from 1988 to April 1997 and as our
Executive Vice President from 1993 to April 1997.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Kenneth&nbsp;L. Way:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Way is our Chairman of the Board and Chief Executive
Officer, a position he has held since 1988. Mr.&nbsp;Way has been
with Lear for 33&nbsp;years. Mr.&nbsp;Way also serves as a
director of Comerica,&nbsp;Inc., CMS Energy Corporation and Wesco
International,&nbsp;Inc. and is a member of the board of
trustees for Kettering University and the Henry Ford Health
Systems.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR>
<TD valign="top">
<I>Paul&nbsp;J. Zimmer:</I></TD>
<TD></TD>
<TD valign="top">
Mr.&nbsp;Zimmer is our Vice President and President&nbsp;&#151;
GM Division, a position he has held since November 1998.
Previously, he was our Vice President&nbsp;&#151; GM North
American Operations since May 1998, our Vice
President&nbsp;&#151; GM Truck Operations since April 1997 and
our Director GMTG Operations&nbsp;&#151; GM Division since May
1996. Mr.&nbsp; Zimmer served as our Platform
Director&nbsp;&#151; Ford Division from July 1995 to May 1996 and
as our Ford Truck Business Unit Manager from April 1993 to July
1995.</TD>
</TR>

</TABLE>

<P align="center">20

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "PART II" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center"><B>PART&nbsp;II</B>

<P align="left"><B>Item 5&nbsp;&#151; Market for the Company&#146;s Common Stock
and Related Stockholder Matters</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lear&#146;s Common Stock is listed on the New&nbsp;York Stock
Exchange under the symbol &#147;LEA.&#148; The Transfer Agent and
Registrar for Lear&#146;s Common Stock is The Bank of
New&nbsp;York, located in New&nbsp;York, New&nbsp;York. On
March&nbsp;1, 2000, there were 1,136&nbsp;holders of record of
Lear&#146;s Common Stock.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To date, we have never paid a cash dividend on our Common Stock.
Any payment of dividends in the future is dependent upon our
financial condition, capital requirements, earnings and other
factors. Also, we are subject to the restrictions on the payment
of dividends contained in our primary credit facilities, the
indentures governing our subordinated notes and in certain other
contractual obligations. See Note&nbsp;10, &#147;Long-Term
Debt,&#148; to the 1999 consolidated financial statements
included in this Report.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the high and low sales prices per
share of Common Stock, as reported by the New&nbsp;York Stock
Exchange, for the periods indicated:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="78%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Price Range of</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Common Stock</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="center" nowrap><FONT size="2"><B>Year Ended December&nbsp;31, 1999:</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>High</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>Low</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
4th Quarter</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$36.81</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$28.75</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
3rd Quarter</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$52.00</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$33.50</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2nd Quarter</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$53.94</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$41.81</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
1st Quarter</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$44.44</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$32.50</FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="78%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Price Range of</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Common Stock</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="center" nowrap><FONT size="2"><B>Year Ended December&nbsp;31, 1998:</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>High</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>Low</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
4th Quarter</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$43.75</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$29.81</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
3rd Quarter</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$57.25</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$34.50</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2nd Quarter</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$57.75</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$48.25</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
1st Quarter</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$57.50</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">
$46.25</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">21

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><B>Item 6&nbsp;&#151; Selected Financial Data</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following income statement and balance sheet data was derived
from our consolidated financial statements. Our consolidated
financial statements for the years ended December&nbsp;31, 1999,
1998, 1997, 1996, and 1995, have been audited by Arthur
Andersen&nbsp;LLP. The selected financial data below should be
read in conjunction with our consolidated financial statements
and the notes thereto and &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations&#148;
included in this Report.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="46%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>For the year ended December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999(1)</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998(2)</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1996</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1995</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions (3))</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
<B>Operating Data:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$12,428.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$9,059.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$7,342.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$6,249.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$4,714.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Gross profit</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,269.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">861.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">809.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">619.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">403.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Selling, general and administrative expenses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">483.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">337.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">286.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">210.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">139.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Restructuring and other charges (credits)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">133.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amortization of goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">76.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">41.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Operating income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">713.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">342.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">481.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">375.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">244.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">235.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">110.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">101.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">102.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">75.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other expense, net(4)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">47.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">22.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">28.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income before income taxes and extraordinary items</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">431.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">209.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">351.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">253.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">157.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">174.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">93.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">143.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">101.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">63.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income before extraordinary items</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">208.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">151.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">94.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Extraordinary items(5)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;207.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;151.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;91.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Basic net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$3.84</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$1.73</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$3.13</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$2.51</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$1.87</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Diluted net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$3.80</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$1.70</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$3.04</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$2.38</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$1.74</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Actual shares outstanding</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">66,599,500</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">66,684,084</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">66,861,958</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">65,575,899</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">56,243,311</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Weighted average shares outstanding(6)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">67,743,152</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">68,023,375</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">68,248,083</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">63,761,634</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">52,488,938</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
<B>Balance Sheet Data:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;3,154.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$2,198.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$1,614.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$1,347.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$1,207.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,717.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,677.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,459.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,816.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,061.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current Liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,487.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,497.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,854.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,499.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,276.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,324.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,463.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,063.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,054.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,038.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Stockholders&#146; Equity</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,465.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,300.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,207.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,018.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">580.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
<B>Other Data:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
EBITDA(7)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;1,054.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;561.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;665.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;518.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;336.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Ratio of EBITDA to interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">x</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">x</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">x</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">x</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">x</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Cash flows from operating activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;560.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;285.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;449.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;462.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;132.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Cash flows from investing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$(2,538.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;(677.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;(519.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;(681.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;(985.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Cash flows from financing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;2,038.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;383.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;39.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;201.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;841.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Capital expenditures</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;391.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;351.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;187.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;153.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;110.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Employees at year end</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">121,102</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">65,316</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">51,025</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">43,902</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35,557</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Number of facilities(8)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">330</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">206</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">179</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">148</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">107</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
North American content per vehicle(9)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;478</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;369</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;320</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;292</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;227</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
North American vehicle production(10)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Western Europe content per vehicle(11)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;227</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;176</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;123</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;109</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;92</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Western Europe vehicle production(12)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
South American content per vehicle(13)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;101</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;134</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;129</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;74</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
South American vehicle production(14)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="31%" align="left">
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="4%"></TD>
<TD width="95%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(1)&nbsp;</TD>
<TD align="left">
Results include the effect of the $4.4&nbsp;million restructuring
and other credits ($2.6&nbsp;million after tax).</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(2)&nbsp;</TD>
<TD align="left">
Results include the effect of the $133.0&nbsp;million
restructuring and other charges ($92.5&nbsp;million after tax).</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(3)&nbsp;</TD>
<TD align="left">
Except per share data, actual and weighted average shares
outstanding, employees at year end, number of facilities, North
American content per vehicle, Western Europe content per vehicle
and South American content per vehicle.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(4)&nbsp;</TD>
<TD align="left">
Consists of foreign currency exchange, minority interests in
consolidated subsidiaries, equity in net (income) loss of
affiliates, state and local taxes and other expense.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(5)&nbsp;</TD>
<TD align="left">
The extraordinary items resulted from the prepayment of debt.</TD>
</TR>

</TABLE>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="4%"></TD>
<TD width="95%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(6)&nbsp;</TD>
<TD align="left">
Weighted average shares outstanding is calculated on a diluted
basis.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(7)&nbsp;</TD>
<TD align="left">
&#147;EBITDA&#148; is operating income plus depreciation and
amortization. We believe that the operating performance of
companies in our industry is measured, in part, by their ability
to generate EBITDA. In addition, we use EBITDA as an indicator of
our operating performance and as a measure of our cash
generating capabilities. EBITDA does not represent and should not
be considered as an alternative to net income, operating income,
net cash provided by operating activities or any other measure
for determining operating performance or liquidity that is
calculated in accordance with generally accepted accounting
principles. Further, EBITDA, as we calculate it, may not be
comparable to calculations of similarly-titled measures of other
companies. Excluding the $(4.4)&nbsp;million and
$133.0&nbsp;million restructuring and other charges
(credits)&nbsp;recorded in 1999 and 1998, respectively, EBITDA
would have been $1,049.8&nbsp;million and $694.9&nbsp;million in
1999 and 1998, respectively.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(8)&nbsp;</TD>
<TD align="left">
Includes facilities operated by Lear&#146;s less than
majority-owned affiliates and facilities under construction.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>(9)&nbsp;</TD>
<TD align="left">
&#147;North American content per vehicle&#148; is Lear&#146;s net
sales in North America divided by estimated total North American
vehicle production.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="5%"></TD>
<TD width="95%"></TD>
</TR>

<TR valign="top">
<TD>(10)&nbsp;</TD>
<TD align="left">
&#147;North American vehicle production&#148; includes car and
light truck production in the United States, Canada and Mexico
estimated from industry sources.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(11)&nbsp;</TD>
<TD align="left">
&#147;Western Europe content per vehicle&#148; is the Lear&#146;s
net sales in Western Europe divided by estimated total Western
Europe vehicle production.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(12)&nbsp;</TD>
<TD align="left">
&#147;Western Europe vehicle production&#148; includes car and
light truck production in Austria, Belgium, France, Germany,
Italy, The Netherlands, Portugal, Spain, Sweden and the United
Kingdom estimated from industry sources.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(13)&nbsp;</TD>
<TD align="left">
&#147;South American content per vehicle&#148; is Lear&#146;s net
sales in South America divided by estimated total South American
vehicle production.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(14)&nbsp;</TD>
<TD align="left">
&#147;South American vehicle production&#148; includes car and
light truck production in South America estimated form industry
sources.</TD>
</TR>

</TABLE>

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<P align="left"><B>Item 7&nbsp;&#151; Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations</B>

<P align="left"><B>Results of Operations</B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD align="left">
<B><I>Year Ended December&nbsp;31, 1999 Compared With Year Ended
December&nbsp;31, 1998</I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the eighteenth consecutive year, we achieved record sales.
Net sales for the year ended December&nbsp;31, 1999 were
$12.4&nbsp;billion, exceeding net sales for the year ended
December&nbsp;31, 1998 by $3.4&nbsp;billion, or 37.2%. Net sales
in the current year benefited from acquisitions, which
collectively accounted for approximately $2.9&nbsp;billion of the
increase. A combination of new business and product content
increases, which contributed approximately $.6&nbsp;billion, as
well as higher volumes in North America also contributed to the
increase. In addition, approximately $.2&nbsp;billion of the
increase reflects the adverse impact of the General Motors work
stoppage on 1998&nbsp;net sales. Partially offsetting the
increase were reduced volumes in South America and unfavorable
exchange rate fluctuations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and gross margin were $1.3&nbsp;billion and 10.2% in
1999 as compared to $.9&nbsp;billion and 9.5% in 1998. Gross
profit and gross margin for 1999 reflects the contribution of
acquisitions, which collectively accounted for approximately
$.3&nbsp;billion of the increase in gross profit and resulted in
a .7% increase in gross margin. New programs in North America and
Europe also contributed approximately $.1&nbsp;billion to the
increase in gross profit.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Selling, general and administrative expenses, including research
and development, as a percentage of net sales increased to 3.9%
for 1999 as compared to 3.7% for the previous year. The increase
in expenses for 1999 as compared to 1998 was due primarily to the
inclusion of expenses incurred as a result of acquisitions,
partially offset by the benefits from sales leveraging, the
positive impact of our restructuring efforts and continued
cost-cutting efforts.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Research and development costs incurred in connection with the
development of new products and manufacturing methods, to the
extent not recoverable from the customer, are charged to selling,
general and administrative expenses as incurred. Such costs
amounted to approximately $181.2&nbsp;million,
$116.6&nbsp;million and $90.4&nbsp;million for the years ended
December&nbsp;31, 1999, 1998 and 1997, respectively.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Including the $(4.4)&nbsp;million and $133.0&nbsp;million
restructuring and other charges (credits)&nbsp;in 1999 and 1998,
respectively, operating income and operating margin were
$713&nbsp;million and 5.7% for the year ended December&nbsp;31,
1999 as compared to $342&nbsp;million and 3.8% for the year ended
December&nbsp;31, 1998. Excluding the restructuring and other
charges (credits), operating income and operating margin for the
current year were $709&nbsp;million and 5.7% as compared to
$475&nbsp;million and 5.2% for the previous year. Operating
income in the current year reflects the contribution of
acquisitions, which collectively accounted for approximately
$195&nbsp;million of the increase. In addition, approximately
$39&nbsp;million of the increase in operating income reflects the
adverse impact of the General Motors work stoppage on 1998
operating income. The increase was partially offset by additional
launch costs in South America. The increase in operating margin
in 1999 as compared to 1998 is due primarily to the non-recurring
impact of the General Motors work stoppage which reduced
operating margin by .4% in 1998. Other factors which contributed
to the increase in operating margin include the performance of
our acquisitions, the positive impact of our restructuring
efforts and the improved performance of our European and Delphi
seating operations. Non-cash depreciation and amortization
charges were $341&nbsp;million and $220&nbsp;million for the
years ended December&nbsp;31, 1999 and 1998, respectively.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest expense in 1999 increased by $125&nbsp;million to
$235&nbsp;million as compared to 1998, primarily due to the debt
incurred to finance recent acquisitions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other expenses, which include state and local taxes and foreign
currency exchange gains and losses, increased to $35&nbsp;million
in 1999, as compared to $17&nbsp;million in 1998. This was due
to state and local taxes associated with our acquisitions and our
foreign locations, as well as foreign exchange losses.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Including the $(4.4)&nbsp;million and $133.0&nbsp;million
restructuring and other charges (credits)&nbsp;in 1999 and 1998,
respectively, net income for the year ended December&nbsp;31,
1999 was $257&nbsp;million, or $3.80&nbsp;per share, as compared
to $115&nbsp;million, or $1.70&nbsp;per share, for the year ended
December&nbsp;31, 1998. Excluding the

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<DIV align="left">
restructuring and other charges (credits), net income for the
current year was $255&nbsp;million, or $3.76&nbsp;per share, as
compared to $208&nbsp;million, or $3.06&nbsp;per share, for the
previous year.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Without the restructuring and other charges (credits), the
provision for income taxes in 1999 was $172&nbsp;million, an
effective tax rate of 40.4%, as compared to $134&nbsp;million, an
effective tax rate of 39.3 %, in 1998.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<B><I>Year Ended December&nbsp;31, 1998 Compared With Year Ended
December&nbsp;31, 1997</I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net sales in the year ended December&nbsp;31, 1998 were
$9.1&nbsp;billion, exceeding 1997&nbsp;net sales by
$1.7&nbsp;billion, or 23.4%. Net sales in 1998 benefited from
acquisitions, which collectively accounted for $1.2&nbsp;billion
of the increase, and a combination of new business and product
content increases in North America and Europe. Partially
offsetting the increase were unfavorable exchange rate
fluctuations in North America, Europe and South America and the
adverse impact of the General Motors work stoppage in North
America.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gross profit and gross margin were $861&nbsp;million and 9.5% in
1998 as compared to $809&nbsp;million and 11.0% in 1997. Gross
profit in 1998 reflects the contribution of acquisitions, new
sport utility and truck programs in North America and established
seat programs in Germany and Italy. The General Motors work
stoppage in North America, new program and facility costs in
Europe and the Asia/ Pacific Rim region and economic conditions
in South America partially offset the increase in gross profit
and resulted in a lower gross margin.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Selling, general and administrative expenses, including research
and development, as a percentage of net sales decreased to 3.7%
in the year ended December&nbsp;31, 1998 as compared to 3.9% in
the year ended December&nbsp;31, 1997. The increase in actual
expenses in comparison to 1997 was due to the inclusion of
expenses incurred as a result of acquisitions as well as
research, development and administrative expenses necessary to
support established and potential business opportunities.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Including the $133&nbsp;million restructuring and other charges,
operating income and operating margin were $342&nbsp;million and
3.8% in the year ended December&nbsp;31, 1998 as compared to
$481&nbsp;million and 6.6% in the year ended December&nbsp;31,
1997. Excluding the $133&nbsp;million restructuring and other
charges, operating income and operating margin in 1998 were
$475&nbsp;million and 5.2%. Operating income in 1998 reflects the
contribution of acquisitions and new programs. Offsetting the
increase in operating income were the General Motors work
stoppage, reduced market demand for certain mature programs and
increased engineering and administrative support expenses
associated with the expansion of domestic and international
business. The decrease in operating margin is due to the impact
of acquisitions and new program and facility costs in Europe and
the Asia/ Pacific Rim region. Non-cash depreciation and
amortization charges were $220&nbsp;million and $184&nbsp;million
for the years ended December&nbsp;31, 1998 and 1997,
respectively.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest expense in 1998 increased by $10&nbsp;million over 1997
to $111&nbsp;million. Interest incurred to finance 1998
acquisitions was partially offset by savings from the redemption
of our 11&nbsp;1/4%&nbsp;senior subordinated notes in July 1997.
We also benefited from reduced interest rates in the United
States and in Europe, as higher rate European currencies
converged into the lower rate eurodollar.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other expenses, which include state and local taxes and foreign
currency exchange gains and losses, decreased to $17&nbsp;million
in 1998 as compared to $34&nbsp;million in 1997, driven by the
benefit of reduced state and local taxes.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Including the $133&nbsp;million restructuring and other charges,
net income for the year ended December&nbsp;31, 1998 was
$115&nbsp;million, or $1.70&nbsp;per share, as compared to
$207&nbsp;million, or $3.04&nbsp;per share, for the year ended
December&nbsp;31, 1997. Excluding the restructuring and other
charges, net income in 1998 was $208&nbsp;million, or
$3.06&nbsp;per share. In 1998, the General Motors work stoppage
also reduced our earnings.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Without the restructuring and other charges, the provision for
income taxes in 1998 was $134&nbsp;million, an effective tax rate
of 39.3%, as compared to $143&nbsp;million, an effective tax
rate of 40.7%, in 1997.

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<B><I>Restructuring and Other Charges (Credits)</I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the fourth quarter of 1998, Lear began to implement a
restructuring plan designed to lower our cost structure and
improve our long-term competitive position. As a result of this
restructuring plan, we recorded pre-tax charges of
$133.0&nbsp;million, consisting of $110.5&nbsp;million of
restructuring charges and $22.5&nbsp;million of other charges.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The plan originally called for the closure of or exit from
13&nbsp;facilities, of which 11 had been closed as of
December&nbsp;31, 1999. In addition, the plan called for the
termination of approximately 3,000&nbsp;employees, of which 2,579
had been terminated as of December&nbsp;31, 1999. The closure of
a European facility and the related termination of
280&nbsp;employees has been delayed until the third quarter of
2001 due to a request from a customer to continue supplying
product until that time. Further, we cancelled the termination of
certain manufacturing and engineering personnel in Italy and
Germany due to increased demand for the related programs. There
have been no other significant changes to the original
restructuring plan.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1999, we realized approximately $20&nbsp;million in savings as
a direct result of the restructuring and other activities. In
future years, we expect to realize annual savings of
approximately $40&nbsp;million. See Note&nbsp;5,
&#147;Restructuring and Other Charges (Credits),&#148; to the
1999 consolidated financial statements included in this Report.

<P align="left"><B>Liquidity and Financial Condition</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our primary liquidity needs are to fund capital expenditures,
service indebtedness and support working capital requirements.
Our primary sources of liquidity are cash flow from operating
activities and borrowing availability under our primary credit
facilities. A substantial portion of our operating income is
generated by our subsidiaries. As a result, we are dependent on
the earnings and cash flows of, and dividends, distributions or
advances from, our subsidiaries to provide the funds necessary to
meet our obligations. There are no material restrictions on the
ability of our subsidiaries to pay dividends or make other
distributions to Lear.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Cash Flow</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash flows from operating activities remain strong. Operating
activities generated $560&nbsp;million of cash flow in 1999 as
compared to $285&nbsp;million in 1998. Net income increased to
$257&nbsp;million in 1999. An increase in non-cash depreciation
and goodwill amortization charges from $220&nbsp;million in 1998
to $341&nbsp;million in 1999 was partially offset by spending
related to recoverable customer engineering and tooling, which
increased from $119&nbsp;million in 1998 to $134&nbsp;million in
1999 to support new programs.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The net change in working capital improved from a source of
$62&nbsp;million in 1998 to a source of $130&nbsp;million in
1999, due primarily to higher activity levels resulting in
increased accounts payable which was partially offset by the
associated increase in accounts receivable and inventories.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net cash used in investing activities increased from
$0.7&nbsp;billion in 1998 to $2.5&nbsp;billion in 1999. In 1999,
the acquisition of UT&nbsp;Automotive for $2.3&nbsp;billion, net
of cash acquired, combined with investments in Peregrine,
Polovat, Ovatex and Lear-Donnelly Overhead Systems, resulted in
net acquisition costs of $2.5&nbsp;billion. Further, in 1999, the
EMS business of the former UT&nbsp;Automotive was sold for
$310&nbsp;million. In 1998, the acquisitions of Delphi, Chapman,
Pianfei and Strapazzini resulted in net acquisition costs of
$328&nbsp;million. Capital expenditures increased from
$351&nbsp;million in 1998 to $391&nbsp;million in 1999 as a
result of new programs, on-going capital programs at acquired
companies and the expansion of facilities worldwide to
accommodate new and existing interior system programs. Based on
our existing operations, we currently anticipate capital
expenditures for 2000 of approximately $375&nbsp;million.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Capitalization</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The purchase price of $2.3&nbsp;billion, net of cash acquired,
for the UT&nbsp;Automotive acquisition was financed by borrowings
under our primary credit facilities. In connection with the
acquisition, we amended and restated our $2.1&nbsp;billion senior
credit facility and entered into new senior credit facilities.
The $2.1&nbsp;billion amended and restated senior credit facility
matures on September&nbsp;30, 2001. The new senior credit
facilities consist of a

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<DIV align="left">
$500&nbsp;million revolving credit facility which matures on
May&nbsp;4, 2004, a $500&nbsp;million term loan having scheduled
amortization beginning on October&nbsp;31, 2000 and a final
maturity on May&nbsp;4, 2004 and a $1.4&nbsp;billion interim term
loan. The $310&nbsp;million proceeds from the sale of the
EMS&nbsp;business were used to reduce borrowings under the
$2.1&nbsp;billion senior credit facility.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of the additional leverage incurred for the
UT&nbsp;Automotive acquisition, Standard&nbsp;&#38; Poor&#146;s
and Moody&#146;s Investors Service lowered their credit ratings
on Lear Corporation. S&#38;P lowered its corporate credit rating
to BB+ from BBB- and the subordinated debt rating to BB- from
BB+. Moody&#146;s lowered its senior credit rating to Ba1 from
Baa3 and disclosed a negative outlook.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;18, 1999, we issued $1.4&nbsp;billion aggregate
principal amount of senior notes, the proceeds of which were used
to repay the interim term loan. The offering included
$800&nbsp;million in aggregate principal amount of ten-year notes
bearing interest at an annual rate of 8.11% and
$600&nbsp;million in aggregate principal amount of six-year notes
bearing interest at an annual rate of 7.96%. The senior notes
were not registered under the Securities Act of 1933, as amended.
On December&nbsp;15, 1999, we completed an exchange offer of the
senior notes for substantially identical notes registered under
the Securities Act of 1933, as amended.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our primary credit facilities contain operating and financial
covenants that, among other things, could limit our ability to
obtain additional sources of capital. The primary credit
facilities are guaranteed by certain of our significant domestic
subsidiaries and are secured by the pledge of all or a portion of
the capital stock of certain of our significant subsidiaries.
The senior notes are guaranteed by the same domestic subsidiaries
that guarantee our primary credit facilities.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, we had $1.5&nbsp;billion
outstanding under the primary credit facilities and
$52&nbsp;million committed under outstanding letters of credit,
resulting in approximately $1.5&nbsp;billion unused and
available. In addition to debt outstanding under the primary
credit facilities, we had $2.0&nbsp;billion of debt, including
short-term borrowings, outstanding as of December&nbsp;31, 1999,
consisting primarily of $1.4&nbsp;billion of senior notes due
between 2005 and 2009 and $336&nbsp;million of subordinated notes
due between 2002 and 2006. As a result of our leveraged
position, we will continue to have significant cash requirements
to service debt.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In each of December&nbsp;1999 and September&nbsp;1998, we
purchased 500,000&nbsp;shares of our outstanding Common Stock at
an average purchase price of $30.46 and $36.50&nbsp;per share,
respectively. In March 2000, our Board of Directors approved a
share repurchase program, authorizing the repurchase of up to an
additional 6.7&nbsp;million shares of our outstanding Common
Stock over a 24-month period.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We believe that cash flows from operations and available credit
facilities will be sufficient to meet our anticipated debt
service obligations, projected capital expenditures and working
capital requirements.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Market Risk Sensitivity</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the normal course of business, we are exposed to market risk
associated with fluctuations in foreign exchange rates and
interest rates. We conservatively manage these risks through the
use of derivative financial instruments in accordance with
management&#146;s guidelines. We enter into all hedging
transactions for periods consistent with the underlying
exposures. We do not enter into derivative instruments for
trading purposes.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Foreign Exchange. </I>We enter into foreign currency forward,
swap and option contracts to mitigate our exposure to adverse
currency rate fluctuations. Our foreign currency exposures are
related to commitments to buy, sell and finance in currencies
other than the local currencies in which we operate. These
commitments are generally for terms of less than one year. The
foreign currency contracts are executed with banks that we
believe are creditworthy and are denominated in currencies of
major industrialized countries. The gains and losses relating to
the foreign currency forward contracts are deferred and included
in the measurement of the foreign currency transaction subject to
the hedge. We believe that any gain or loss incurred on a
foreign currency forward contract is offset by the direct effects
of currency movements on the underlying transactions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our most significant foreign currency exposures relate to Mexico,
Canada, Sweden and the European Monetary Union. We have
performed a quantitative analysis of our overall currency rate
exposure as of

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<DIV align="left">
December&nbsp;31, 1999. The potential adverse earnings impact
from a hypothetical 10% weakening of the U.S.&nbsp;dollar
relative to all other currencies for calendar year&nbsp;2000 is
approximately $3.0&nbsp;million.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, contracts representing a notional
amount of $217.4&nbsp;million were outstanding with maturities of
less than one year. The fair value of these foreign exchange
contracts as of December&nbsp;31, 1999 was approximately a
negative $1.3&nbsp;million. A 10%&nbsp;change in exchange rates
would result in a $2.0&nbsp;million change in market value.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are certain shortcomings inherent to the sensitivity
analysis presented. The analysis assumes that all currencies
would uniformly strengthen or weaken relative to the
U.S.&nbsp;dollar. In reality, some currencies may weaken while
others may strengthen causing the earnings impact to increase or
decrease depending on the currency and the direction of the rate
movement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Interest Rates. </I>We use a combination of fixed rate debt
and interest rate swap and option contracts to manage our
exposure to interest rate movements. Our exposure is a result of
variable interest rates on outstanding floating rate debt
instruments that are indexed to U.S.&nbsp;or European Monetary
Union short-term money market rates. We use interest rate swap
agreements to convert variable rate debt to fixed rate debt,
matching effective and maturity dates to specific debt issuances.
These interest rate derivative contracts are executed with banks
that we believe are creditworthy and are denominated in
currencies that match the underlying debt instrument. Net
interest payments or receipts from interest rate swap agreements
are recorded as adjustments to interest expense in our
consolidated statements of income on an accrual basis.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have performed a quantitative analysis of our overall interest
rate exposure as of December&nbsp;31, 1999. The analysis assumes
an instantaneous 100&nbsp;basis point parallel shift in interest
rates at all points of the yield curve. The potential adverse
earnings impact from this hypothetical increase for calendar
year&nbsp;2000 is approximately $13.0&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, contracts representing a notional
amount of $800&nbsp;million were outstanding with maturity dates
of March&nbsp;2000 through August&nbsp;2008. The fair value of
these interest rate swap agreements is subject to changes in
value due to changes in interest rates. The fair value of
outstanding interest rate swap agreements as of December&nbsp;31,
1999 was approximately $1.7&nbsp;million. A 100&nbsp;basis point
parallel increase in interest rates would increase the market
value of these instruments by approximately $2.5&nbsp;million. A
similar decrease in rates would result in a $5.6&nbsp;million
decline in market value.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additional information relating to our outstanding financial
instruments is included in Note&nbsp;10, &#147;Long-Term
Debt&#148; and Note&nbsp;16 &#147;Financial Instruments&#148; to
the 1999 consolidated financial statements included in this
Report.

<P align="left"><B>Other Matters</B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Environmental Matters</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are subject to local, state, federal and foreign laws,
regulations and ordinances, which govern activities or operations
that may have adverse environmental effects and which impose
liability for the costs of cleaning up certain damages resulting
from past spills, disposal or other releases of hazardous wastes
and environmental compliance. Our policy is to comply with all
applicable environmental laws and to maintain procedures to
ensure compliance. However, we have been, and in the future may
become, the subject of formal or informal enforcement actions or
procedures. We have been named a potentially responsible party or
are voluntarily engaged in the cleanup of hazardous wastes at
certain sites owned, leased or operated by us, including certain
properties acquired in the UT Automotive acquisition. Certain
present and former properties of UT Automotive are subject to
environmental liabilities which may be significant. We obtained
certain agreements and indemnities with respect to possible
environmental liabilities from United Technologies Corporation in
connection with our acquisition of UT&nbsp;Automotive. While we
do not believe that the environmental liabilities associated with
our properties will have a material adverse effect on our
business, consolidated financial position or results of future
operations, no assurances can be given in this regard.

<P align="center">28

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<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Accounting Policies</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Pre-Production Costs Related to Long-Term Supply Arrangements.
</B> We incur pre-production engineering, research and
development costs related to the products that we supply to our
customers under long-term supply agreements. Historically, we
have capitalized these costs when reimbursable from the customer
and amortized them over the term of the related supply agreement
in order to match revenues and expenses. Provisions for losses
were provided at the time that we anticipated engineering costs
would exceed customer recovery. On September&nbsp;23, 1999, the
Emerging Issues Task Force (&#147;EITF&#148;) issued a consensus
on EITF&nbsp;Issue No.&nbsp;99-5, &#147;Accounting for
Pre-Production Costs Related to Long-Term Supply
Agreements.&#148; The consensus requires that beginning
January&nbsp;1, 2000, all pre-production engineering, research
and development costs for products under long-term supply
arrangements be expensed as incurred unless the reimbursement of
such costs is contractually guaranteed by the customer. As such,
beginning January&nbsp;1, 2000, we will expense all
pre-production engineering, research and development costs for
products under long-term supply arrangements as incurred and for
which reimbursement is not guaranteed by our customer. Although
compliance with these requirements of EITF&nbsp;Issue
No.&nbsp;99-5 would have a material impact on our future results
of operations, we have taken steps to mitigate this impact, and
as a result, we anticipate that this impact will be largely
offset through both commercial and operational efforts.
EITF&nbsp;Issue No.&nbsp;99-5 will have no impact on our cash
flows from operations. The EITF&nbsp;consensus allows for the
continued amortization of pre-production engineering, research
and development costs incurred and capitalized on or prior to
December&nbsp;31, 1999. As such, we will continue to amortize
these costs over the terms of the related supply agreements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, we incur pre-production tooling costs related to the
products that we supply to our customers under long-term supply
agreements. Historically, we have capitalized these costs when
reimbursable from the customer. Provisions for losses were
provided at the time that we anticipated tooling costs would
exceed customer recovery. EITF&nbsp;Issue No.&nbsp;99-5 requires
that beginning January&nbsp;1, 2000, all pre-production tooling
costs for tools that the supplier will not own and that will be
used in producing products under long-term supply arrangements be
expensed as incurred unless the supply arrangement provides the
supplier the noncancelable right to use the tools or the
reimbursement of such costs is contractually guaranteed by the
customer. As the reimbursement of pre-production tooling costs is
generally contractually guaranteed by our customers, compliance
with this requirement of EITF&nbsp;Issue No.&nbsp;99-5 will not
have a material impact on our future results of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Loss Contract Accrual. </B>We enter into supply agreements
with our customers at the beginning of a given vehicle&#146;s
production life. In certain instances, we may be committed under
existing agreements to supply product to our customers at selling
prices which are not sufficient to cover the direct cost to
produce such product. In such situations, we record a liability
for the estimated future amount of such losses. Such losses are
recognized at the time that the loss is probable and reasonably
estimable and are recorded at the minimum amount necessary to
fulfill our obligations to our customers. Losses are determined
on a separate agreement basis and are estimated based upon
information available at the time of the estimate, including
future production volume estimates, length of the program and
selling price and production cost information.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the Delphi acquisition, we recorded a loss
contract accrual of $53.3&nbsp;million in purchase accounting.
During 1999, we utilized $16.1&nbsp;million of the accrual to
offset current losses. As of December&nbsp;31, 1999, the
remaining loss contract accrual was $31.9&nbsp;million. The loss
contract accrual was not recorded in Delphi&#146;s historical
operating results. The losses included in the accrual have not
been, and will not be, included in our operating results since
the acquisition date. Further, our future operating results will
benefit as a result of accruing these contract losses in the
Delphi purchase price allocation. Set forth below is an estimate
of the utilization of the Delphi loss contract accrual by
calendar year:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="68%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>2000</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>2001</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>2002</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>2003</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>(in millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Loss contract accrual utilization</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10.1</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">29

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Derivative Instruments and Hedging Activities. </B>The
Financial Accounting Standards Board has issued Statement of
Financial Accounting Standards No.&nbsp;133, &#147;Accounting for
Derivative Instruments and Hedging Activities,&#148; which, as
amended by SFAS No.&nbsp;137, is effective for fiscal years
beginning after June&nbsp;15, 2000. It requires all derivative
instruments to be recorded in the balance sheet at their fair
value. Changes in the fair value of derivative instruments are
required to be recorded each period in current earnings or
accumulated other comprehensive income, depending on whether or
not the derivative instrument is designated as part of a hedge
transaction. We do not expect the effects of adoption to be
significant.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Year&nbsp;2000</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We established a process to identify and resolve the business
issues associated with Year&nbsp;2000 and expended considerable
resources to ensure that our critical processes were
Year&nbsp;2000 compliant. We established global monitoring and
response teams during the December&nbsp;31, 1999 to
January&nbsp;1, 2000 transition period to ensure systems
&#147;rolled over&#148; appropriately.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All of our critical processes have been tested and are fully
operational. We did not experience any business disruptions
associated with Year&nbsp;2000. We will continue to monitor our
computer applications and those of our key suppliers throughout
Year&nbsp;2000 to ensure that any latent Year&nbsp;2000 matters
are addressed promptly.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Shareholder Rights Plan</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March&nbsp;2000, our Board of Directors adopted a Shareholder
Rights Plan, declaring a dividend of one Preferred Share Purchase
Right per share of our outstanding Common Stock to stockholders
of record on March&nbsp;17, 2000. The Preferred Share Purchase
Rights are designed to assure that all of our stockholders
receive fair and equal treatment in any proposed takeover and
were not adopted in response to any specific takeover threat.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Preferred Share Purchase Rights will be exercisable only if a
person or group acquires 20% or more of our outstanding Common
Stock or announces a tender offer, the consummation of which
would result in ownership by a person or group of 20% or more of
our outstanding Common Stock. Each Preferred Share Purchase Right
will entitle stockholders to buy one one-thousandth of a share
of a new series of junior participating preferred stock at any
exercise price of $125. If a person or group acquires 20% or more
of our outstanding Common Stock, each Preferred Share Purchase
Right will entitle its holder to purchase, at the Preferred Share
Purchase Right&#146;s then-current exercise price, a number of
our common shares having a market value of twice such price. In
addition, if we are acquired in a merger or other business
combination transaction after a person or group has acquired 20%
or more of our outstanding Common Stock, each Preferred Share
Purchase Right will entitle its holder to purchase, at the
Preferred Share Purchase Right&#146;s then-current exercise
price, a number of the acquiring company&#146;s common shares
having a market value of twice such price. The acquiring person
or group will not be entitled to exercise these Rights. Prior to
the acquisition by a person or group of beneficial ownership of
20% or more of our outstanding Common Stock, the Preferred Share
Purchase Rights are redeemable for one cent per right at the
option of our Board of Directors. The Preferred Share Purchase
Rights will expire on March&nbsp;1, 2010.

<P align="left"><B>Forward-Looking Statements</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This report contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that any forward-looking statements,
including statements regarding our intent, belief or current
expectations, are not guarantees of future performance and
involve risks and uncertainties. Actual results may differ
materially from those in forward-looking statements as a result
of various factors including, but not limited to:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="1%"></TD>
<TD width="96%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
general economic conditions in the markets in which we operate,</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
fluctuation in worldwide or regional automotive and light truck
production,</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
labor disputes involving us or our significant customers,</TD>
</TR>

</TABLE>

<P align="center">30

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="1%"></TD>
<TD width="96%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
changes in practices and/or policies of our significant customers
toward outsourcing automotive components and systems,</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
our success in achieving cost reductions that offset or exceed
customer-mandated selling price reductions,</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
unanticipated liabilities arising from legal proceedings to which
we are a party or unexpected claims against us or our products,</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
fluctuations in currency exchange rates&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
other risks detailed from time to time in our Securities and
Exchange Commission filings.</TD>
</TR>

</TABLE>

<P align="left">
We do not intend to update these forward-looking statements.

<P align="center">31

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<P align="left"><B>Item&nbsp;8&nbsp;&#151; Consolidated Financial Statements and
Supplementary Data</B>

<!-- link1 "INDEX TO CONSOLIDATED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="center"><B>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="90%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Page</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Report of Independent Public Accountants</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Consolidated Balance Sheets as of December&nbsp;31, 1999 and 1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">34</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Consolidated Statements of Income for the years ended
December&nbsp;31, 1999, 1998 and 1997</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Consolidated Statements of Stockholders&#146; Equity for the
years ended December&nbsp;31, 1999, 1998 and 1997</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">36</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Consolidated Statements of Cash Flows for the years ended
December&nbsp;31, 1999, 1998 and 1997</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">37</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Notes to Consolidated Financial Statements</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">38</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">32

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="center"><B>REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS</B>

<P align="left">To Lear Corporation:

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have audited the accompanying consolidated balance sheets of
LEAR CORPORATION AND SUBSIDIARIES (&#147;the Company&#148;) as of
December&nbsp;31, 1999 and 1998, and the related consolidated
statements of income, stockholders&#146; equity and cash flows
for each of the three years in the period ended December&nbsp;31,
1999. These financial statements are the responsibility of the
Company&#146;s management. Our responsibility is to express an
opinion on these financial statements based on our audits.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We conducted our audits in accordance with auditing standards
generally accepted in the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of the Company as of December&nbsp;31, 1999 and 1998, and the
results of its operations and its cash flows for each of the
three years in the period ended December&nbsp;31, 1999 in
conformity with accounting principles generally accepted in the
United States.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="38%"></TD>
<TD width="62%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
/s/&nbsp;&nbsp;ARTHUR ANDERSEN&nbsp;LLP</TD>
</TR>

</TABLE>

<P align="left">
Detroit, Michigan,

<DIV align="left">
January&nbsp;28, 2000.
</DIV>

<P align="center">33

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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "LEAR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="center"><B>LEAR CORPORATION AND SUBSIDIARIES</B>

<P align="center">
<B>CONSOLIDATED BALANCE SHEETS</B>

<P align="center">
ASSETS

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="68%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>(In millions,</B></FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>except share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Current Assets:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Cash and cash equivalents</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">106.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Accounts receivable, net of reserves of $18.3 in 1999 and $16.0
in 1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,866.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,373.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Inventories</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">577.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">349.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Recoverable customer engineering and tooling</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">304.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">221.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">299.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">223.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total current assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,154.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,198.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Long-Term Assets:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Property, plant and equipment, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,970.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,182.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Goodwill, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,210.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,019.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">382.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">277.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total long-term assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,563.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,479.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,717.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,677.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="11" align="center" valign="top"><FONT size="2">LIABILITIES AND STOCKHOLDERS&#146; EQUITY</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Current Liabilities:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Short-term borrowings</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">103.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">82.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Accounts payable and drafts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,245.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,600.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Accrued liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,074.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">797.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Current portion of long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">63.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total current liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,487.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,497.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Long-Term Liabilities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Deferred national income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,324.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,463.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">423.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">377.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total long-term liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,764.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,879.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Stockholders&#146; Equity:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Common Stock, par value $.01&nbsp;per share, 150,000,000&nbsp;
shares authorized and 67,609,730 and 67,194,314&nbsp;shares
issued at December&nbsp;31, 1999 and 1998, respectively</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Additional paid-in capital</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">870.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">859.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Notes receivable from sale of common stock</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Common stock held in treasury, 1,010,230 and 510,230&nbsp; shares
at December&nbsp;31, 1999 and 1998, respectively, at cost</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(33.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Retained earnings</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">761.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">504.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Accumulated other comprehensive income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(133.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(46.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total stockholders&#146; equity</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,465.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,300.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,717.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,677.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these consolidated
balance sheets.

<P align="center">34

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "LEAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME" -->
<DIV align="left"><A NAME="008"></A></DIV>

<P align="center"><B>LEAR CORPORATION AND SUBSIDIARIES</B>

<P align="center">
<B>CONSOLIDATED STATEMENTS OF INCOME</B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="60%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>For the Year Ended December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>(In millions, except per share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,428.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9,059.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7,342.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Cost of sales</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11,159.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,198.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,533.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Selling, general and administrative expenses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">483.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">337.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">286.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Restructuring and other charges (credits)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">133.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Amortization of goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">76.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">41.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Operating income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">713.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">342.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">481.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">235.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">110.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">101.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other expense, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">34.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income before provision for national income taxes, minority
interests in consolidated subsidiaries, equity in net (income)
loss of affiliates and extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">443.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">214.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">345.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Provision for national income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">174.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">93.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">143.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Minority interests in consolidated subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Equity in net (income) loss of affiliates</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(8.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income before extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">208.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Extraordinary loss on early extinguishment of debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">207.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Basic net income per share:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income before extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$3.84</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.73</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.14</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Extraordinary loss</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.01</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Basic net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$3.84</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.73</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.13</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Diluted net income per share:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income before extraordinary items</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$3.80</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.70</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.05</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Extraordinary loss</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.01</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Diluted net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$3.80</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.70</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.04</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these consolidated
statements.

<P align="center">35

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<!-- link1 "LEAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS&#146; EQUITY" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="center"><B>LEAR CORPORATION AND SUBSIDIARIES</B>

<P align="center">
<B>CONSOLIDATED STATEMENTS OF STOCKHOLDERS&#146; EQUITY</B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="61%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>(In millions, except share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Common Stock</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at beginning of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at end of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Additional Paid-in Capital</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at beginning of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">859.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">851.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">834.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Stock options exercised</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Stock options cancelled</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Tax benefit of stock options exercised</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at end of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">870.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">859.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">851.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Notes Receivable from Sale of Common Stock</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at beginning of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Repayment of stockholders&#146; notes receivable</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at end of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Treasury Stock</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at beginning of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Purchases, 500,000&nbsp;shares at an average price of
$30.46&nbsp; per share in 1999 and $36.50&nbsp;per share in 1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(15.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at end of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(33.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Retained Earnings</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at beginning of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">504.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">401.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">194.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">207.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net loss from change in consolidation policy</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(12.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at end of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">761.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">504.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">401.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Accumulated Other Comprehensive Income</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Minimum Pension Liability</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at beginning of period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(11.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Minimum pension liability adjustment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(11.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at end of period</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(11.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cumulative Translation Adjustments</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at beginning of period</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(34.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(46.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(8.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cumulative translation adjustments</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(93.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(37.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Balance at end of period</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(128.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(34.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(46.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Accumulated other comprehensive income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(133.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(46.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(46.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Total Stockholders&#146; Equity</B></FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,465.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,300.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,207.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Comprehensive income</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">207.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net loss from change in consolidation policy, including tax of
$1.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(12.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Minimum pension liability adjustment, net of tax of $(4.4), $6.1
and $(.2) in 1999, 1998 and 1997, respectively</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(11.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cumulative translation adjustments</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(93.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(37.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Comprehensive income</B></FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">169.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">103.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">170.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these consolidated
statements.

<P align="center">36

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "LEAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS" -->
<DIV align="left"><A NAME="010"></A></DIV>

<P align="center"><B>LEAR CORPORATION AND SUBSIDIARIES</B>

<P align="center">
<B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="57%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>For the year ended December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Cash Flows from Operating Activities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">207.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Adjustments to reconcile net income to net cash provided by
operating activities&nbsp;&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Depreciation and amortization of goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">340.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">219.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">184.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Postretirement benefits accrued, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Loss on long-lived assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net loss from change in consolidation policy</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(12.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Recoverable customer engineering and tooling, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(133.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(119.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(48.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Extraordinary loss</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(43.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(28.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net change in working capital items</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">130.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">61.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">100.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net cash provided by operating activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">560.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">285.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">449.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Cash Flows from Investing Activities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Additions to property, plant and equipment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(391.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(351.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(187.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Acquisitions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,478.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(328.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(332.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Proceeds from disposition of business segment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">310.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Other, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net cash used in investing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,538.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(677.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(519.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Cash Flows from Financing Activities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Senior notes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,400.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Long-term revolving credit borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">560.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">317.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">136.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Other long-term debt borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(26.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">58.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(133.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Short-term borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">43.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">24.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Proceeds from sale of common stock, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Purchase of treasury stock, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(15.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Increase (decrease) in drafts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">118.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(19.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Other, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(24.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net cash provided by financing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,038.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">383.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Effect of foreign currency translation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Net Change in Cash and Cash Equivalents</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">76.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(13.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Cash and Cash Equivalents at Beginning of Year</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">26.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Cash and Cash Equivalents at End of Year</B></FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">106.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Changes in Working Capital, Net of Effects of Acquisitions:
</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Accounts receivable, net</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(91.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(218.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(72.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Inventories</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(57.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(59.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(10.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Accounts payable</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">310.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">322.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">150.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Accrued liabilities and other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(30.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Net change in working capital items</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">130.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">61.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">100.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
<B>Supplementary Disclosure:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Cash paid for interest</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">218.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">109.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">109.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Cash paid for income taxes</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">152.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">119.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">91.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
The accompanying notes are an integral part of these consolidated
statements.

<P align="center">37

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>LEAR CORPORATION AND SUBSIDIARIES</B>

<DIV>&nbsp;</DIV>

<!-- link1 "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<DIV align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B>
</DIV>

<P align="left"><B>(1)&nbsp; Basis of Presentation</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements include the accounts of
Lear Corporation, a Delaware corporation, and the wholly-owned
and majority-owned subsidiaries controlled by Lear. Unless the
context otherwise requires, references herein to &#147;Lear&#148;
or the &#147;Parent&#148; are to Lear Corporation, and
references to the &#147;Company&#148; are to Lear and the
wholly-owned and majority-owned subsidiaries controlled by Lear.
Investments in affiliates, other than wholly-owned and
majority-owned subsidiaries controlled by Lear, in which Lear
owns a 20% or greater interest are accounted for under the equity
method (Note&nbsp;8).

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company and its affiliates are involved in the design and
manufacture of interior systems and components for automobiles
and light trucks. The Company&#146;s main customers are
automotive original equipment manufacturers. The Company operates
facilities worldwide (Note&nbsp;15). Effective December&nbsp;31,
1998, certain international operating facilities, which had
previously been included in the consolidated financial statements
based on fiscal years ending November&nbsp;30, are included in
the consolidated financial statements based on fiscal years
ending December&nbsp;31. Net sales at these international
facilities for December 1998 were $339.9&nbsp;million, and the
December 1998&nbsp;net loss of $12.1&nbsp;million from these
international facilities was charged to retained earnings.

<P align="left"><B>(2)&nbsp; Summary of Significant Accounting Policies</B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Inventories</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Inventories are stated at the lower of cost or market. Cost is
determined using the first-in, first-out method. Finished goods
and work-in-process inventories include material, labor and
manufacturing overhead costs. Inventories are comprised of the
following (in millions):

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="76%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Raw materials</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">317.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">253.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Work-in-process</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">88.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">23.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Finished goods</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">171.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">71.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Inventories</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">577.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">349.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Recoverable Customer Engineering and Tooling</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Costs incurred for certain engineering and tooling projects for
which the Company will receive customer recovery have been
capitalized and are classified as either recoverable customer
engineering and tooling or other long-term assets, dependent upon
when recovery is anticipated. Provisions for losses have been
provided at the time the Company anticipates engineering and
tooling costs will exceed anticipated customer recovery.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;23, 1999, the Emerging Issues Task Force
(&#147;EITF&#148;) issued a consensus on EITF Issue
No.&nbsp;99-5, &#147;Accounting for Pre-Production Costs Related
to Long-Term Supply Agreements.&#148; The consensus requires that
beginning January&nbsp;1, 2000, all pre-production engineering,
research and development costs for products under long-term
supply arrangements be expensed as incurred unless the
reimbursement of such costs is contractually guaranteed by the
customer. As such, beginning January&nbsp;1, 2000, the Company
will expense all pre-production engineering, research and
development costs for products under long-term supply
arrangements as incurred and for which reimbursement is not
guaranteed by its customer. Although compliance with these
requirements of EITF Issue No.&nbsp;99-5 would have a material
impact on the Company&#146;s future results of operations, the
Company has taken steps to mitigate this impact, and as a result,
the Company anticipates that this impact will be largely offset
through both commercial and operational efforts. EITF Issue
No.&nbsp;99-5 will have no impact on the Company&#146;s cash
flows from operations. The EITF consensus allows for the
continued amortization of pre-production engineering, research
and development costs incurred

<P align="center">38

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
and capitalized on or prior to December&nbsp;31, 1999. As such,
the Company will continue to amortize these costs over the terms
of the related supply agreements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, EITF Issue No.&nbsp;99-5 requires that beginning
January&nbsp;1, 2000, all pre-production tooling costs for tools
that the supplier will not own and that will be used in producing
products under long-term supply arrangements be expensed as
incurred unless the supply arrangement provides the supplier the
noncancelable right to use the tools or the reimbursement of such
costs is contractually guaranteed by the customer. As the
reimbursement of pre-production tooling costs is generally
contractually guaranteed by the Company&#146;s customers,
compliance with this requirement of EITF No.&nbsp;99-5 will not
have a material impact on its future results of operations.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Property, Plant and Equipment</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Property, plant and equipment is stated at cost. Depreciable
property is depreciated over the estimated useful lives of the
assets, using principally the straight-line method as follows:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="79%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Buildings and improvements</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20 to 25 years</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Machinery and equipment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5 to 15 years</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A summary of property, plant and equipment is shown below (in
millions):

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="75%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Land</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">84.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">70.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Buildings and improvements</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">577.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">429.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Machinery and equipment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,878.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,197.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Construction in progress</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">114.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">78.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Total property, plant and equipment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,653.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,776.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Less&nbsp;&#151; accumulated depreciation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(683.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(594.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net property, plant and equipment</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,970.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,182.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Goodwill</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Goodwill is amortized on a straight-line basis over
40&nbsp;years. Accumulated amortization of goodwill amounted to
$279.8&nbsp;million and $206.3&nbsp;million at December&nbsp;31,
1999 and 1998, respectively. The Company evaluates the carrying
value of goodwill for potential impairment if the facts and
circumstances of the operations to which goodwill relates suggest
that the goodwill may be impaired. Such evaluations consider
significant declines in sales, earnings or cash flows or material
adverse changes in the business climate. If any impairment is
indicated, the Company compares the undiscounted cash flows of
the business to its book value, including goodwill.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Long-Term Assets</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company reevaluates the carrying values of its long-term
assets whenever circumstances arise which call into question the
recoverability of such carrying values. The evaluation takes into
account all future estimated cash flows from the use of assets,
with an impairment being recognized if the evaluation indicates
that the future cash flows will not be greater than the carrying
value. An impairment charge of $33.2&nbsp;million was recognized
in 1998 in connection with the restructuring (Note&nbsp;5).

<P align="center">39

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Revenue Recognition and Sales Commitments</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company recognizes revenue as its products are shipped to its
customers. The Company enters into supply agreements with its
customers at the beginning of a given vehicle&#146;s production
life. Once such agreements are entered into by the Company,
fulfillment of the customers&#146; purchasing requirements is the
obligation of the Company for the entire production life of the
vehicle, with terms of up to 10&nbsp;years. These agreements
generally may be terminated by the customer (but not by the
Company) at any time, but in general are not. The Company, in
certain instances, may be committed under existing agreements to
supply product to its customers at selling prices which are not
sufficient to cover the direct cost to produce such product. In
such situations, the Company records a liability for the
estimated future amount of such losses. Such losses are
recognized at the time that the loss is probable and reasonably
estimable and are recorded at the minimum amount necessary to
fulfill the Company&#146;s obligations to its customer. Losses
are determined on a separate agreement basis and are estimated
based upon information available at the time of the estimate,
including future production volume estimates, length of the
program and selling price and production cost information.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Research and Development</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Costs incurred in connection with the development of new products
and manufacturing methods to the extent not recoverable from the
Company&#146;s customers are charged to selling, general and
administrative expenses as incurred. These costs amounted to
$181.2&nbsp;million, $116.6&nbsp;million and $90.4&nbsp;million
for the years ended December&nbsp;31, 1999, 1998 and 1997,
respectively.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Foreign Currency Translation</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With the exception of foreign subsidiaries operating in highly
inflationary economies, which are measured in U.S.&nbsp;dollars,
assets and liabilities of foreign subsidiaries are translated
into U.S.&nbsp;dollars at the exchange rates in effect at the end
of the period. Revenues and expenses of foreign subsidiaries are
translated using an average of exchange rates in effect during
the period. Translation adjustments that arise from translating a
foreign subsidiary&#146;s financial statements from the
functional currency to U.S.&nbsp;dollars are reflected in
accumulated other comprehensive income in the consolidated
balance sheets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Transaction gains and losses that arise from exchange rate
fluctuations on transactions denominated in a currency other than
the functional currency, except those transactions which operate
as a hedge of a foreign currency investment position, are
included in the results of operations as incurred.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Net Income Per Share</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Basic net income per share is computed using the weighted average
common shares outstanding during the period. Diluted net income
per share is computed using the average share price during the
period when calculating the dilutive effect of stock options.
Options to purchase 760,950&nbsp;shares of common stock of the
Company at an exercise price of $54.22 were outstanding during
1999 but were not included in the computation of diluted shares
outstanding, as inclusion would have resulted in antidilution.
Shares outstanding were as follows:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="53%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>For the Year Ended December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Weighted average common shares<BR>
outstanding</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">66,922,844</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">66,947,135</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">66,304,770</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Dilutive effect of stock options</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">820,308</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,076,240</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,943,313</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Diluted shares outstanding</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">67,743,152</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">68,023,375</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">68,248,083</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">40

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Use of Estimates</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preparation of the consolidated financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the
consolidated financial statements and the reported amounts of
revenues and expenses during the reporting period. Generally,
assets and liabilities subject to estimation and judgment include
amounts related to unsettled pricing discussions with customers
and suppliers, pension and other postretirement costs
(Note&nbsp;12), plant consolidation and reorganization reserves
(Notes&nbsp;5 and 6), self-insurance accruals, asset valuation
reserves and accruals related to litigation and environmental
remediation costs. Management does not believe that the ultimate
settlement of any such assets or liabilities will materially
affect the Company&#146;s financial position or future results of
operations.

<P align="left"><B>(3)&nbsp; Acquisitions and Sales</B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<B><I>1999 Acquisitions</I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>UT Automotive</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May 1999, the Company acquired UT&nbsp;Automotive, Inc., a
wholly owned operating segment of United Technologies Corporation
(&#147;UT Automotive&#148;), for approximately
$2.3&nbsp;billion, net of cash acquired. UT Automotive was a
supplier of electrical, electronic, motor and interior products
and systems to the global automotive industry. Headquartered in
Dearborn, Michigan, UT Automotive had 1998 annual sales of
approximately $3.0&nbsp;billion, 44,000&nbsp;employees and 90
facilities in 18 countries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The UT&nbsp;Automotive Acquisition was accounted for as a
purchase, and accordingly, the assets purchased and liabilities
assumed have been reflected in the accompanying consolidated
balance sheet as of December&nbsp;31, 1999. The operating results
of UT Automotive have been included in the consolidated
financial statements of the Company since the date of
acquisition. The consideration paid to the former owner of UT
Automotive was increased by $79.9&nbsp;million in the third
quarter of 1999 to reflect a revised estimate of the working
capital acquired. Further, the allocation of the purchase price
was revised in the fourth quarter of 1999, resulting in a
decrease in goodwill of $77.2&nbsp;million from the original
allocation. The decrease was primarily due to a revision of
$52.0&nbsp;million of amounts recorded related to property, plant
and equipment. Such revision was based on an appraisal of the
property, plant and equipment. The purchase price and related
allocation are as follows (in millions):

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Consideration paid to former owner, net of cash acquired of
$83.5&nbsp;million</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,296.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Debt assumed</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Estimated fees and expenses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Cost of acquisition</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,313.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Property, plant and equipment</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">685.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Value assigned to assets sold</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">310.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net working capital</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">106.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other assets purchased and liabilities assumed, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(20.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,232.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total cost allocation</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,313.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The purchase price and related allocation may be revised up to
one year from the date of acquisition, as a result of obtaining
additional information regarding liabilities assumed, including
contingent liabilities, and revisions of preliminary estimates of
fair values made at the date of purchase. Additionally, the
Company has not finalized plans for the restructuring of certain
acquired operations. The restructuring plans include potential
plant closings and the termination or relocation of employees.
While there may be revisions, the

<P align="center">41

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
Company does not know whether there will be a material change as
additional information on issues such as those noted above is not
available at this time. The final purchase price and related
allocation will be completed by the end of April 2000. See
Note&nbsp;4 for pro forma financial information.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Other 1999 Acquisitions</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September 1999, the Company purchased Donnelly
Corporation&#146;s fifty-percent interest in Lear-Donnelly
Overhead Systems,&nbsp;L.L.C. (&#147;Lear-Donnelly&#148;), the
joint venture in which the two automotive suppliers had been
equal partners. The joint venture had been formed in 1997, with
Donnelly and Lear contributing certain assets. Lear-Donnelly
designed and manufactured overhead systems for the automotive
industry, and its product line included headliners, sun visors,
lighting and overhead consoles.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In April 1999, the Company purchased certain assets of Peregrine
Windsor,&nbsp;Inc., a division of Peregrine Incorporated
(&#147;Peregrine&#148;). Peregrine produced just-in-time seat
assemblies and door panels for several General Motors models.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In February 1999, the Company purchased Polovat and the
automotive business of Ovatex. Polovat and Ovatex supplied
flooring and acoustic products for the automotive market. The
acquired operations have three plants in Poland and two plants in
Italy and employ more than 600 people.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Lear-Donnelly, Peregrine, Polovat and Ovatex acquisitions
were accounted for as purchases, and accordingly, the assets
purchased and liabilities assumed have been reflected in the
accompanying balance sheet as of December&nbsp;31, 1999. The
operating results of the acquired companies have been included in
the consolidated financial statements of the Company since the
date of each acquisition. The aggregate cash paid for these
acquisitions was $134.5&nbsp;million, with funds provided by
borrowings under the Company&#146;s primary credit facilities
(Note&nbsp;10). The pro forma effects of these acquisitions would
not be materially different from reported results.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Sale of Electric Motor Systems</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June 1999, the Company completed the sale of the recently
acquired Electric Motor Systems (&#147;EMS&#148;) business to
Johnson Electric Holdings Limited for $310&nbsp;million. Lear
acquired the EMS business in conjunction with the acquisition of
UT Automotive. The EMS business was sold for an amount that was
approximately equal to the fair value which had been allocated to
the EMS business at the date of acquisition. As such, no gain or
loss on the sale was recognized. Although the sale of the EMS
business qualified as a discontinued operation, the results of
the EMS business operations during the ownership period were not
material and are included in other expense, net. See Note&nbsp;4
for pro forma financial information.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<B><I>1998 Acquisitions</I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Delphi Seating Systems</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September 1998, the Company purchased the seating business of
Delphi Automotive Systems, a division of General Motors
Corporation (&#147;Delphi Seating&#148;). Delphi Seating was a
leading supplier of seat systems to General Motors with sixteen
facilities located throughout ten countries. The aggregate
purchase price for the acquisition of Delphi Seating (the
&#147;Delphi Acquisition&#148;) was $246.6&nbsp;million. Funds
for the Delphi Acquisition were provided by borrowings under the
Company&#146;s then existing credit agreements (Note&nbsp;10).

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Delphi Seating acquisition was accounted for as a purchase,
and accordingly, the assets purchased and liabilities assumed
have been reflected in the accompanying consolidated balance
sheets. The operating results of Delphi Seating have been
included in the consolidated financial statements of the Company
since the date of acquisition. The purchase price and related
allocation was finalized in August 1999 and resulted in

<P align="center">42

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
an increase in goodwill of $28.0&nbsp;million from the
preliminary allocation as of December&nbsp;31, 1998. The increase
was primarily due to the revision of amounts recorded of
approximately $13.3&nbsp;million related to loss contracts
existing at the date of acquisition to provide products to its
customers at selling prices which are not sufficient to cover the
direct costs to produce such products and a decrease of
approximately $12.1&nbsp;million in the amount allocated to the
fixed assets acquired to reflect the final determination of their
fair value. The final purchase price and related allocation are
as follows (in millions):

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="86%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Consideration paid to former owner, net of cash acquired of
$6.0&nbsp;million</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">242.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Debt assumed</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Fees and expenses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Cost of acquisition</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">246.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Property, plant and equipment</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">38.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net working capital</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other assets purchased and liabilities assumed, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(28.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">224.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total cost allocation</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">246.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See Note&nbsp;4 for pro forma financial information.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Other 1998 Acquisitions</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May 1998, the Company acquired, in separate transactions,
Gruppo Pianfei&nbsp;S.r.L. (&#147;Pianfei&#148;), Strapazzini
Resine&nbsp;S.r.L. (&#147;Strapazzini&#148;) and the
A.W.&nbsp;Chapman&nbsp;Ltd. and A.W.&nbsp;Chapman Belgium
NV&nbsp;subsidiaries of the Rodd Group Limited
(&#147;Chapman&#148;). Each of the acquired companies was a
supplier of automotive interiors to the European automotive
market. These acquisitions were accounted for as purchases, and
accordingly, the assets purchased and liabilities assumed have
been reflected in the accompanying consolidated balance sheets.
The operating results of these acquired companies have been
included in the consolidated financial statements of the Company
since the date of each acquisition. The aggregate cash paid for
these acquisitions was $115.3&nbsp;million, with funds provided
by borrowings under the Company&#146;s then existing credit
agreements (Note&nbsp;10). The pro forma effects of these
acquisitions would not be materially different from reported
results.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<B><I>1997 Acquisitions</I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August 1997, the Company acquired the Seat Sub-Systems Unit of
ITT Automotive, a division of ITT Industries (&#147;ITT Seat
Sub-Systems&#148;). ITT Seat Sub-Systems was a North American
supplier of power seat adjusters and power recliners.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In July 1997, the Company acquired certain equity and partnership
interests in Keiper Car Seating GmbH&nbsp;&#38;&nbsp;Co. and
certain of its subsidiaries and affiliates (collectively,
&#147;Keiper Seating&#148;) for approximately
$252.5&nbsp;million. Keiper Seating was a leading supplier of
automotive vehicle seat systems with operations in Germany,
Italy, Hungary, Brazil and South&nbsp;Africa.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As part of the Keiper Seating acquisition, the Company acquired a
25%&nbsp;ownership interest in Euro&nbsp;American Seating
Corporation (&#147;EAS&#148;). On December&nbsp;12, 1997, the
Company acquired the remaining 75% of EAS. EAS was a supplier of
automotive seat systems to original equipment manufacturers.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June 1997, the Company acquired all of the outstanding shares
of common stock of Dunlop Cox Limited (&#147;Dunlop Cox&#148;).
Dunlop Cox, based in Nottingham, England, provided Lear with the
ability to design and manufacture manual and
electronically-powered automotive seat adjusters.

<P align="center">43

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The ITT Seat Sub-Systems, Keiper Seating and Dunlop Cox
acquisitions (collectively, the &#147;1997 Acquisitions&#148;)
were accounted for as purchases, and accordingly, the assets
purchased and liabilities assumed in the acquisitions have been
reflected in the accompanying consolidated balance sheets. The
operating results of the 1997 Acquisitions have been included in
the consolidated financial statements of the Company since the
date of each acquisition. Funds for the 1997 Acquisitions were
provided by borrowings under the Company&#146;s then existing
credit agreements. The aggregate purchase price of the 1997
Acquisitions and final allocation, which were not materially
different than preliminary estimates, were as follows (in
millions):

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="86%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Consideration paid to former owners, net of cash acquired of
$9.2&nbsp;million</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">332.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Deferred purchase price</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">28.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Debt assumed</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Fees and expenses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Cost of acquisitions</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">368.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Property, plant and equipment</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">85.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net working capital</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other assets purchased and liabilities assumed, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">275.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total cost allocation</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">368.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The pro forma effects of these acquisitions would not be
materially different from reported results.

<P align="left"><B>(4)&nbsp; Pro Forma Financial Information</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following pro forma financial information is presented to
illustrate the estimated effect of the Transactions, as if such
Transactions had occurred as of January&nbsp;1, 1998.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Transactions are:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="6%"></TD>
<TD width="1%"></TD>
<TD width="93%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
the acquisition of Delphi Seating;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
the acquisition of UT Automotive;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
the sale of EMS and the application of the proceeds therefrom;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
the amendment and restatement of the Company&#146;s existing
senior credit facility in connection with the acquisition of UT
Automotive;</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
borrowings under the Company&#146;s new senior credit facilities,
which it entered into in May 1999, in connection with the
acquisition of UT Automotive;&nbsp;and</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>&#149;&nbsp;</TD>
<TD align="left">
the offering and sale of the Company&#146;s 7.96%&nbsp;Senior
Notes due 2005 and 8.11%&nbsp; Senior Notes due 2009 and the
application of the net proceeds therefrom in May 1999.</TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="30%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="23"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="23"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1999</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="23"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>UT</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating and</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Elimination</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating and</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Lear</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Automotive</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Financing</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>of EMS</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Financing</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Historical</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Historical(1)</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustments</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Historical(3)</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustments</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Pro Forma</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="23"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="23"><FONT size="2"><B>(Unaudited; in millions, except per share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,428.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,091.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(114.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13,405.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">36.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(41.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)(4)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">(7)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">252.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Basic net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.84</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.77</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Diluted net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.80</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.72</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">44

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<TABLE width="80%" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="30%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>UT</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating and</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Delphi</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Lear</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Automotive</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Financing</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Seating</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Historical</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Historical(1)</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustments</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Historical(2)</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>(Unaudited; in millions, except per share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9,059.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,900.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">777.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">80.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(125.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)(4)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(133.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Basic net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.73</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Diluted net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.70</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="80%" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="30%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating and</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Elimination</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Operating and</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Financing</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>of EMS</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Financing</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustments</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Historical(3)</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustments</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Pro Forma</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>(Unaudited; in millions, except per share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(108.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)(5)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(351.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,277.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">59.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">&nbsp;(6)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(16.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">(7)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(8.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Basic net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.12</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Diluted net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.12</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>

<P align="left"><HR size="1" width="31%" align="left">
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="4%"></TD>
<TD width="96%"></TD>
</TR>

<TR valign="top">
<TD>(1)&nbsp;</TD>
<TD align="left">
The UT Automotive historical information represents amounts
derived from the audited results of operations for the year ended
December&nbsp;31, 1998 and the unaudited results of operations
for the period from January&nbsp;1, 1999 through May&nbsp;4,
1999, the date on which UT Automotive was acquired by the
Company.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(2)&nbsp;</TD>
<TD align="left">
The Delphi Seating historical information represents amounts
derived from the unaudited results of operations for the period
from January&nbsp;1, 1998 through September&nbsp;1, 1998, the
date on which Delphi Seating was acquired by the Company.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(3)&nbsp;</TD>
<TD align="left">
The EMS historical information represents amounts derived from
the unaudited results of operations for the period from
January&nbsp;1, 1999 through June&nbsp;25, 1999, the date on
which EMS was sold by the Company, and the fiscal year ended
December&nbsp;31, 1998. The EMS business was sold for an amount
that was approximately equal to the fair value which had been
allocated to the EMS business at the date of acquisition. As
such, no gain or loss on the sale was recognized.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(4)&nbsp;</TD>
<TD align="left">
The Operating and Financing Adjustments that resulted from the
acquisition of UT Automotive include:</TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="68%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Year Ended</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of goodwill from the acquisition of UT Automotive
(over 40&nbsp;years)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Incremental interest expense incurred as a result of the
acquisition of UT Automotive</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">52.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">161.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Impact on tax provision due to incremental interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(56.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net impact of adjustments on net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">41.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">125.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="4%"></TD>
<TD width="96%"></TD>
</TR>

<TR valign="top">
<TD>(5)&nbsp;</TD>
<TD align="left">
The adjustment to net sales reflects the elimination of
intercompany sales between the Company and Delphi Seating.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>(6)&nbsp;</TD>
<TD align="left">
The Delphi Seating pro forma financial data does not reflect
adjustments for the anticipated results of certain activities and
actions that the Company feels will benefit continuing
operations, as such adjustments represent adjustments to the
historical operating results of Delphi Seating. These adjustments
were determined using allocation methods consistent with those
used in deriving Delphi Seating&#146;s audited financial
statements and include operating losses of approximately
$27.3&nbsp;million related to plants closed by the former owner
prior to the date of acquisition where the Company did not
acquire or assume any of the related obligations, a charge of
approximately $15.3&nbsp;million related to employee benefit
obligations which were not assumed by the Company and charges of
approximately $56.1&nbsp;million related to general corporate
allocations which had previously been allocated by the former
owner. Based upon the Company&#146;s experience of operating
Delphi Seating since September&nbsp;1, 1998, the Company believes
that a</TD>
</TR>

</TABLE>

<P align="center">45

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="4%"></TD>
<TD width="96%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD align="left">
reasonable estimate of Delphi Seating&#146;s general corporate
costs on a stand-alone basis would have been approximately
$15.4&nbsp;million.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Operating and Financing Adjustments that resulted from the
acquisition of Delphi Seating include:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="80%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Year Ended</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of goodwill from the acquisition of Delphi Seating
(over 40&nbsp;years)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Incremental interest expense incurred as a result of the
acquisition of Delphi Seating</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Capitalization of fixed asset purchases originally expensed</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(31.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Depreciation expense on fixed assets previously written off</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Impact on tax provision due to utilization of domestic Delphi
losses against the Company&#146;s pre-tax income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(49.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net impact of adjustments on net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">59.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
(7)&nbsp; The Operating and Financing Adjustments that resulted
from the sale of EMS include:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="81%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Year Ended</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Reduction of interest expense incurred as a result of the sale
of&nbsp;EMS</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Impact on tax provision due to reduction of interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net impact of adjustments on net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The pro forma information above does not purport to be indicative
of the results that actually would have been achieved if the
Transactions had occurred prior to the years presented and is not
intended to be a projection of future results or trends.

<P align="left"><B>(5)&nbsp; Restructuring and Other Charges (Credits)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the fourth quarter of 1998, the Company began to implement a
restructuring plan designed to lower its cost structure and
improve the long-term competitive position of the Company. As a
result of this restructuring plan, the Company recorded pre-tax
charges of $133.0&nbsp;million, consisting of $110.5&nbsp;million
of restructuring charges and $22.5&nbsp;million of other
charges. Included in this total are the costs to consolidate the
Company&#146;s European operations of $78.9&nbsp;million, charges
resulting from the consolidation of certain manufacturing and
administrative operations in North and South America of
$31.6&nbsp;million, other asset impairment charges of
$15.0&nbsp;million and contract termination fees and other of
$7.5&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has procedures in place to monitor variances from the
costs included in the original restructuring plan. As a result,
during 1999, the Company made adjustments to the original
restructuring provision, resulting in net restructuring credits
of approximately $10.1&nbsp;million. Adjustments are attributable
to several factors including severance benefits in excess of
amounts originally accrued, reduced severance benefits due to
employee reductions attained through attrition, sub-lessor
arrangements and decisions to delay or cancel certain actions.
Additionally, during 1999, the Company expensed as incurred
approximately $5.7&nbsp;million of employee and equipment
relocation costs incurred in connection with the implementation
of the restructuring plan. The net effect of the adjustments to
the original restructuring provision and the costs expensed as
incurred is reflected as restructuring and other charges
(credits)&nbsp;in the consolidated statement of income for 1999.

<P align="center">46

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidation of the European operations included the closing
of six manufacturing facilities and two administrative offices.
With the exception of two manufacturing facilities, all
facilities were closed as of December&nbsp;31, 1999. An
additional closure is expected to occur in the first quarter of
2000. In the fourth quarter of 1999, the final closure and the
related termination of 280 employees at a European facility was
delayed until the third quarter of 2001 due to a request from the
Company&#146;s customer to continue supplying product until that
time. The Company notified union and government officials and
took other appropriate actions in the fourth quarter of 1999 as a
result of the decision to delay the closure and related
terminations. Further, in the fourth quarter of 1999, the Company
cancelled the termination of certain manufacturing and
engineering personnel in Italy and Germany due to increased
demand for the related programs. As a result, the Company reduced
the restructuring accrual related to severance and asset
impairments by $3.1&nbsp;million and $2.1&nbsp;million,
respectively. There have been no other significant changes to the
original restructuring plan.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The majority of the European countries in which the Company
operates have statutory requirements with regards to the minimum
severance payments that must be made to employees upon
termination. The Company accrued $37.7&nbsp;million of severance
costs for approximately 210 salaried and 1,040&nbsp;hourly
employees under SFAS No.&nbsp;112, &#147;Employers&#146;
Accounting for Postemployment Benefits,&#148; as of
December&nbsp;31, 1998, as the Company anticipated this to be the
minimum aggregate severance payments that will be made in
accordance with these statutory requirements. The accrual of
$37.7&nbsp;million of severance costs recorded under SFAS
No.&nbsp;112 included employees in two countries, Italy and
Sweden. The accrual in Italy included $5.3&nbsp;million for 220
manufacturing and support personnel and $1.7&nbsp;million for 131
engineering and administrative personnel of which 147 and 87,
respectively, were terminated as of December&nbsp;31, 1999, and
of which 3 and 44, respectively, will no longer be severed. The
remaining terminations will be completed in the first quarter of
2000. The accrual in Sweden included $27.7&nbsp;million for 820
manufacturing and support personnel and $3.0&nbsp;million for 79
engineering and administrative personnel of which 570 and 49,
respectively, were terminated as of December&nbsp;31, 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the Company accrued $5.5&nbsp;million for separation
pay for approximately 450&nbsp;employees at other European
locations where the individuals had been notified of their
planned termination as of December&nbsp;31, 1998. Of these
employees, 426 were terminated as of December&nbsp;31, 1999. The
remaining 24&nbsp;employees are in Germany and will not be
severed. The European consolidation also resulted in lease
cancellation costs with a net present value of $22.1&nbsp;million
and asset impairment charges of $11.7&nbsp;million. The asset
impairment charges included a $3.6&nbsp;million write-down to
fair value less disposal costs of land and buildings based upon
appraisals and a $8.1&nbsp;million write-down to fair value less
disposal costs of machinery and equipment made obsolete or
redundant due to the decision to close or consolidate European
facilities. Other costs incurred to consolidate these facilities
amount to $1.9&nbsp;million, consisting mainly of government
grant repayments.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidation of the North and South American operations
included the closing of two manufacturing facilities in North
America and three manufacturing facilities in South America.
Management feels that these consolidations better position the
Company in terms of capacity, location and utilization. The
charge consisted of severance of $5.2&nbsp;million for
approximately 470&nbsp;employees notified prior to
December&nbsp;31, 1998, a $6.5&nbsp;million write-down of assets
to their fair value less disposal costs, lease cancellation costs
of $4.5&nbsp;million and other costs to close the facilities of
$.4&nbsp;million. The asset impairment charges included a
$2.1&nbsp;million write-down to fair value less disposal costs of
land and buildings based upon appraisals and a $4.4&nbsp;million
write-down to fair value less disposal costs of machinery and
equipment made obsolete or redundant due to the decision to close
or consolidate facilities. As of December&nbsp;31, 1999, all
facilities were closed and all terminations were completed.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company also implemented a plan to consolidate certain
administrative functions and to reduce the U.S.&nbsp;salaried
workforce. The Company recorded a charge of $15.0&nbsp;million
for severance and benefits related to approximately
830&nbsp;salaried employees who were notified that their
positions were being eliminated and were

<P align="center">47

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
presented with severance packages that they would receive upon
their departure from the Company. As of December&nbsp;31, 1999,
all terminations were completed.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company reevaluated the carrying value of its long-lived
assets as a result of changes in the economic condition of
certain countries in which the Company operates and the
consolidation of specific operations in North and South America.
The carrying values of those assets were determined to be
impaired as the separately identifiable, anticipated,
undiscounted future cash flows from such assets were less than
their respective carrying values. The resulting asset impairment
charges of $15.0&nbsp;million, included in other charges, consist
of a valuation allowance on the collectibility of a note
receivable from a South American supplier of $6.5&nbsp;million,
the write-down of equipment of $5.6&nbsp;million and the
write-down of costs related to the termination of an information
systems project of $2.9&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The costs of contract termination fees and other of
$7.5&nbsp;million are comprised primarily of a contract
termination penalty related to a sales representation contract.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the restructuring and other
charges (in millions):

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="41%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Utilized</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Original</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Accrual at</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Provision</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustments</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Cash</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Noncash</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dec.&nbsp;31, 1999</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
European Operations Consolidation:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Severance</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">43.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(28.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Asset impairments</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(8.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lease cancellation costs</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">22.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other closure costs</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
North and South America Operations Consolidation:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Severance</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(20.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Asset impairments</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(7.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lease cancellation costs</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other closure costs</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other charges:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Asset impairments</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(14.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(7.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">133.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(66.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(30.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">32.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left"><B>(6)&nbsp; Restructuring Charges Related to 1998 Acquisitions
</B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<B><I>Pianfei, Strapazzini and Chapman</I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the second quarter of 1998, the Company began to implement
restructuring plans designed to integrate the operations of
recently acquired Pianfei, Strapazzini and Chapman, which was
finalized during the second quarter of 1999. As a result of these
restructuring plans, the Company recorded an adjustment to the
original purchase price allocations of $24.1&nbsp;million,
consisting of $12.2&nbsp;million of lease cancellation costs,
$6.8&nbsp;million of asset impairment charges and
$5.1&nbsp;million of severance costs. The asset impairment
charges represent the write-down to fair value less disposal
costs of machinery and equipment made obsolete or redundant due
to the decision to close or exit facilities. The plans originally
called for the termination of 503&nbsp;employees and the closure
of or exit from six facilities. Favorable business conditions
have prompted the Company to remain at one of the facilities. As
a result, the related restructuring accrual and goodwill were
reduced in the fourth quarter of 1999, and the plans now call for
the termination of 342&nbsp;employees, of which 336 were
terminated as of December&nbsp;31, 1999, and the closure of or
exit from five facilities, of which four were closed or vacated
as of December&nbsp;31, 1999. The remaining employee terminations
and facility closure are

<P align="center">48

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
expected to be completed by the third quarter of 2000. The
following table summarizes the restructuring activity related to
these acquisitions (in millions):

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="30%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Utilized</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Accrual at</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Original</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>December 31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustment</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustments</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Cash</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Noncash</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Lease cancellation costs</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(9.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Asset impairment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Severance</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Total</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">24.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(12.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<B><I>Delphi Seating</I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the third quarter of 1998, the Company began to implement
restructuring plans designed to integrate the operations of
Delphi Seating, which were finalized during the third quarter of
1999. As a result of these restructuring plans, the Company
recorded an adjustment to the original purchase price allocation
of $10.6&nbsp;million. The adjustment consisted of
$3.2&nbsp;million of severance costs, $3.3&nbsp;million of asset
impairment charges, $2.5&nbsp;million of lease cancellation costs
and $1.6&nbsp;million of other costs, consisting mainly of
government grant repayments. The asset impairment charges
represent the write-down to fair value less disposal costs of
equipment made obsolete or redundant due to the decision to close
or exit facilities. The plan originally called for the
termination of 796 employees and the closure of or exit from four
facilities, of which all were closed or vacated as of
December&nbsp;31, 1999. As a result of the Company&#146;s ability
to relocate certain of the employees, the plan calls for the
termination of 434 employees, of which 410 were terminated as of
December&nbsp;31, 1999. The remaining employee terminations are
expected to be completed by the second quarter of 2000. The
following table summarizes the restructuring activity related to
the Delphi Seating acquisition (in millions):

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="43%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD colspan="3"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Utilized</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Accrual at</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Original</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Adjustment</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Cash</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Noncash</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Lease cancellation costs</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Asset impairment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Severance</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Total</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left"><B>(7)&nbsp; Secondary Public Stock Offerings</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June 1997, the Company&#146;s then-largest stockholders,
certain merchant banking partnerships affiliated with Lehman
Brothers Holdings,&nbsp;Inc., (the &#147;Lehman Funds&#148;),
sold all 10,284,854 of their remaining shares of common stock of
Lear in a secondary offering. Prior to the offering, the Lehman
Funds held approximately 16% of the outstanding common stock of
the Company. The Company received no proceeds from the sale of
these shares.

<P align="center">49

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(8)&nbsp; Investments in Affiliates</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The investments in affiliates, which are accounted for using the
equity method, are as follows:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="73%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Percent Beneficial</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Ownership as of</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Lear Furukawa Corporation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">51</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Sommer Masland U.K.&nbsp;Ltd.</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Industrias Cousin Freres, S.L. (Spain)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Lear&nbsp;&#151; Donnelly Overhead Systems,&nbsp;L.L.C.</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
SALBI, A.B. (Sweden)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Detroit Automotive Interiors,&nbsp;L.L.C.</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Autoform Kunstoffteile GmbH (Germany)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
North American Interiors,&nbsp;L.L.C.</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Autoform Kunstoffteile GmbH&nbsp;&#38;&nbsp;Co. KG (Germany)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
NTTF Industries&nbsp;Ltd. (India)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">46</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Saturn Electronics Texas,&nbsp;L.L.C.</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Interiores Automotrices Summa,&nbsp;S.A. de C.V. (Mexico)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Lear-Air International Holdings Pty&nbsp;Ltd. (Australia)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">40</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
U.P.M. S.r.L. (Italy)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Markol Otomotiv Yan Sanayi Ve Ticaret A.S. (Turkey)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Pianfei Glass&nbsp;S.A. (Spain)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Jiangxi Jiangling Lear Interior Systems&nbsp;Co.,&nbsp;Ltd.
(China)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Guildford Kast Plastifol Dynamics,&nbsp;Ltd. (U.K.)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Precision Fabrics Group</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Interni&nbsp;S.A. (Brazil)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Pacific Trim Corporation&nbsp;Ltd. (Thailand)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate investment in affiliates was $54.9&nbsp;million and
$73.9&nbsp;million as of December&nbsp;31, 1999 and 1998,
respectively.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Summarized group financial information for affiliates accounted
for under the equity method as of December&nbsp;31, 1999 is as
follows (unaudited, in millions):

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="76%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Balance sheet data:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current assets</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">120.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">162.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Non-current assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">88.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">137.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">75.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">128.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Non-current liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">41.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">54.2</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="67%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Year Ended December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Income statement data:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">335.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">579.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">493.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Gross profit</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">44.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">80.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">75.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income (loss) before provision for income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net income (loss)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20.3</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">50

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company had sales to affiliates of approximately
$32.0&nbsp;million, $62.9&nbsp;million and $28.1&nbsp;million for
the years ended December&nbsp;31, 1999, 1998 and 1997,
respectively. Dividends of approximately $1.8&nbsp;million,
$2.3&nbsp;million and $3.9&nbsp;million were received by the
Company for the years ended December&nbsp;31, 1999, 1998 and
1997, respectively.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lear Furukawa Corporation is accounted for under the equity
method; as shareholder resolutions require a two-thirds majority
vote, Lear does not control this affiliate.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 1999, the Company acquired Donnelly Corporation&#146;s
50%&nbsp;interest in Lear&nbsp;&#151; Donnelly Overhead
Systems,&nbsp;L.L.C. (Note&nbsp;3). In addition, during 1999, the
Company sold its interest in Sommer Masland U.K.&nbsp;Ltd. and
Guildford Kast Plastifol Dynamics,&nbsp;Ltd. (U.K.). Finally,
during 1999, the Company contributed the equity of Lear
Corporation Australia Pty&nbsp;Ltd. for a 40%&nbsp;interest in
Lear-Air International Holdings Pty&nbsp;Ltd. (Australia). An
outside party contributed capital for the remaining
60%&nbsp;interest in the holding company.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 1998, the Company increased its ownership of General
Seating of America,&nbsp;Inc., General Seating of
Canada,&nbsp;Ltd. and Lear Corporation Thailand. As a result of
these ownership increases, the Company acquired majority control
and included the results of operations and financial position of
these entities in its consolidated financial statements from the
date of majority control.

<P align="left"><B>(9)&nbsp; Short-Term Borrowings</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lear utilizes uncommitted lines of credit to satisfy short-term
working capital requirements. At December&nbsp;31, 1999, the
Company had unsecured lines of credit available from banks of
approximately $340&nbsp;million, subject to certain restrictions
imposed by the primary credit facilities (Note&nbsp;10). Weighted
average interest rates on the outstanding borrowings at
December&nbsp;31, 1999 and 1998 were 6.6% and 4.7%, respectively.

<P align="left"><B>(10)&nbsp; Long-Term Debt</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Long-term debt is comprised of the following (in millions):

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="75%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Credit facilities</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,506.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">970.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">145.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">173.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,652.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,143.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Less&nbsp;&#151; Current Portion</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">63.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,588.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,127.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
8.11%&nbsp;Senior Notes, due 2009</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">800.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
7.96%&nbsp;Senior Notes, due 2005</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">600.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
9.50%&nbsp;Subordinated Notes, due 2006</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">200.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">200.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
8.25%&nbsp;Subordinated Notes, due 2002</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">136.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">136.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,736.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">336.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Long-Term Debt</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,324.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,463.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The purchase price for the acquisition of UT Automotive was
financed by borrowings under the Company&#146;s primary credit
facilities. In connection with the acquisition, the Company
amended and restated its $2.1&nbsp;billion senior credit facility
and entered into new senior credit facilities. The
$2.1&nbsp;billion amended and restated senior credit facility
matures on September&nbsp;30, 2001. The new senior credit
facilities consist of a

<P align="center">51

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
$500&nbsp;million revolving credit facility which matures on
May&nbsp;4, 2004, a $500&nbsp;million term loan having scheduled
amortization beginning on October&nbsp;31, 2000 and a final
maturity on May&nbsp;4, 2004 and a $1.4&nbsp;billion interim term
loan. The $310&nbsp;million proceeds from the sale of the EMS
business were used to reduce borrowings under the
$2.1&nbsp;billion senior credit facility.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;18, 1999, the Company issued $1.4&nbsp;billion
aggregate principal amount of senior notes, the proceeds of which
were used to repay the interim term loan. The offering included
$800&nbsp;million in aggregate principal amount of ten-year notes
bearing interest at an annual rate of 8.11% and
$600&nbsp;million in aggregate principal amount of six-year notes
bearing interest at an annual rate of&nbsp;7.96%. Interest on
the senior notes is payable on May&nbsp;15 and November&nbsp;15
of each year. The senior notes were not registered under the
Securities Act of 1933, as amended. On December&nbsp;15, 1999,
the Company completed an exchange offer of the senior notes for
substantially identical notes registered under the Securities Act
of 1933, as amended.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The senior notes are senior unsecured obligations of Lear and
rank pari passu in right of payment with all of Lear&#146;s
existing and future unsubordinated unsecured indebtedness.
Lear&#146;s obligations under the senior notes are guaranteed, on
a joint and several basis, by certain of its domestic
subsidiaries. Lear&#146;s primary credit facilities are
guaranteed by the same domestic subsidiaries that guarantee
Lear&#146;s obligations under the senior notes and are secured by
the pledge of all or a portion of the capital stock of certain
of its significant subsidiaries. Pursuant to the terms of the
primary credit facilities, the guarantees and stock pledges shall
be released when and if Lear achieves a certain leverage ratio
or its senior long-term unsecured debt rating is at or above
&#147;BBB-&#148; from Standard&nbsp;&#38; Poor&#146;s Ratings
Group or at or above &#147;Baa3&#148; from Moody&#146;s Investors
Service,&nbsp;Inc. and certain other conditions are satisfied.
In the event that any such subsidiary ceases to be a guarantor
under the primary credit facilities, such subsidiary will be
released as a guarantor of the senior notes. Lear may redeem all
or part of either series of the senior notes, at its option, at
any time, at the redemption price equal to the greater of
(a)&nbsp;100% of the principal amount of the notes to be redeemed
or (b)&nbsp;the sum of the present values of the remaining
scheduled payments of principal and interest thereon from the
redemption date to the maturity date discounted to the redemption
date on a semiannual basis at the applicable treasury rate plus
50 basis points, in each case, together with any interest accrued
but not paid to the date of the redemption.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary credit facilities contain numerous restrictive
covenants relating to the maintenance of certain financial ratios
and to the management and operation of the Company. The
covenants include, among other restrictions, limitations on
indebtedness, guarantees, mergers, acquisitions, fundamental
corporate changes, asset sales, investments, loans and advances,
liens, dividends and other stock payments, transactions with
affiliates and optional payments and modification of debt
instruments. The senior notes also contain covenants restricting
the ability of Lear and its subsidiaries to incur liens and to
enter into sale and leaseback transactions and restricting the
ability of Lear to consolidate with, to merge with or into or to
sell to or otherwise dispose of all or substantially all of its
assets to any person.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, the Company had $1.5&nbsp;billion
outstanding under the primary credit facilities and
$52&nbsp;million committed under outstanding letters of credit,
resulting in approximately $1.5&nbsp;billion unused and
available. The weighted average interest rate across all
currencies was approximately 6.6% and 5.4% at December&nbsp;31,
1999 and 1998, respectively. Borrowings and repayments under the
primary credit facilities were as follows (in millions):

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="69%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR>
<TD align="center" nowrap><FONT size="2"><B>Year</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Borrowings</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Repayments</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
1999</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9,274.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,701.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,994.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,677.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
1997</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,422.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,260.3</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">52

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other senior debt at December&nbsp;31, 1999 is principally made
up of amounts outstanding under U.S.&nbsp;term loans, industrial
revenue bonds and capital leases.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The 8.25%&nbsp;Subordinated Notes, due in 2002, require interest
payments semi-annually on February&nbsp;1 and August&nbsp;1 and
became callable at par on February&nbsp;1, 1999. The
9.50%&nbsp;Subordinated Notes, due in 2006, require interest
payments semi-annually on January&nbsp;15 and July&nbsp;15 and
are callable at par beginning July&nbsp;15, 2001. The indentures
related to the Company&#146;s subordinated debt restrict the
Company&#146;s ability to, among other things, incur additional
indebtedness, declare dividends, create liens, make investments
and advances and sell assets.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In July 1997, the Company redeemed all of its 11.25%&nbsp;Senior
Subordinated Notes at par with borrowings under the
Company&#146;s then existing credit agreements. The accelerated
amortization of deferred financing fees related to the notes
totaled approximately $1.6&nbsp;million. This amount, net of the
related tax benefit of $.6&nbsp;million, has been reflected as an
extraordinary loss in the consolidated statement of income in
1997.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The scheduled maturities of long-term debt at December&nbsp;31,
1999 for the five succeeding years are as follows (in millions):

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="82%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
</TR>

<TR>
<TD align="center" nowrap><FONT size="2"><B>Year</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Maturities</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
2000</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">63.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2001</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">685.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2002</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">128.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2003</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">289.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2004</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">576.9</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">53

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(11)&nbsp; National Income Taxes</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A summary of income before provision for national income taxes
and components of the provision for national income taxes is as
follows (in millions):

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="68%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Year Ended December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Income before provision for national income taxes, minority
interests in consolidated subsidiaries, equity in net (income)
loss of affiliates and extraordinary item:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Domestic</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">208.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">98.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">213.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Foreign</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">235.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">132.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">443.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">214.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">345.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Domestic provision for national income taxes:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current provision</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">109.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">72.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">109.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Deferred&nbsp;&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Deferred benefit</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(39.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(14.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Benefit of previously unbenefitted net operating loss
carryforwards</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(39.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(14.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(24.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total domestic provision</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">69.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">58.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">85.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Foreign provision for national income taxes:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current provision</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">85.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">58.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">65.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Deferred&nbsp;&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Deferred provision (benefit)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">36.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(17.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Benefit of previously unbenefitted net operating loss
carryforwards</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(17.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(22.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(7.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total foreign provision</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">104.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">57.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Provision for national income taxes</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">174.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">93.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">143.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The differences between tax provisions calculated at the United
States Federal statutory income tax rate of 35% and the
consolidated national income tax provision are summarized as
follows (in millions):

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="65%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Year Ended December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Income before provision for national income taxes, minority
interests in consolidated subsidiaries, equity in net (income)
loss of affiliates and extraordinary item multiplied by the
United States Federal statutory rate</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">155.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">75.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">121.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Differences between domestic and effective foreign tax rates</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(22.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net operating losses not tax benefited</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Decrease in valuation allowance</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Foreign subsidiary basis adjustment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(13.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Utilization of net operating losses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(17.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(10.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">174.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">93.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">143.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">54

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred national income taxes represent temporary differences in
the recognition of certain items for income tax and financial
reporting purposes. The components of the net deferred national
income tax (asset)&nbsp;liability are summarized as follows (in
millions):

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="71%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Deferred national income tax liabilities:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Long-term asset basis differences</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">120.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">52.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Deferred finance fees</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Recoverable customer engineering and tooling</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">48.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.7</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">184.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">118.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Deferred national income tax assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Tax credit carryforwards</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(28.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Tax loss carryforwards</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(135.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(128.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Retirement benefit plans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(36.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(28.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accruals</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(81.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(97.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Self-insurance reserves</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(22.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(12.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Asset valuations</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(36.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Minimum pension liability</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Deferred compensation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(346.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(281.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Valuation allowance</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">98.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">95.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(248.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(186.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net deferred national income tax asset</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(64.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(68.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred national income tax assets have been fully offset by a
valuation allowance in certain foreign tax jurisdictions due to a
history of operating losses. The classification of the net
deferred national income tax asset is summarized as follows (in
millions):

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="70%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Deferred national income tax assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(126.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(100.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Long-term</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(13.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Deferred national income tax liabilities:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">47.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Long-term</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net deferred national income tax asset</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(64.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(68.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred national income taxes have not been provided on the
undistributed earnings of the Company&#146;s foreign subsidiaries
as such amounts are either considered to be permanently
reinvested or would not create any additional U.S.&nbsp;tax upon
repatriation. The cumulative undistributed earnings at
December&nbsp;31, 1999 on which the Company had not provided
additional national income taxes were approximately
$219.5&nbsp;million.

<P align="center">55

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;31, 1999, the Company had tax loss
carryforwards of $313.4&nbsp;million which relate to certain
foreign subsidiaries. Of the total loss carryforwards,
$236.8&nbsp;million has no expiration and $76.6&nbsp;million
expires in 2000 through 2007.

<P align="left"><B>(12)&nbsp; Pension and Other Postretirement Benefit Plans</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has noncontributory defined benefit pension plans
covering certain domestic employees and certain employees in
foreign countries. The Company&#146;s salaried plans provide
benefits based on a five-year average earnings formula. Hourly
pension plans provide benefits under flat benefit formulas. The
Company also has contractual arrangements with certain employees
which provide for supplemental retirement benefits. In general,
the Company&#146;s policy is to fund these plans based on legal
requirements, tax considerations and local practices.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has postretirement plans covering a portion of the
Company&#146;s domestic and Canadian employees. The plans
generally provide for the continuation of medical benefits for
all eligible employees who complete 10 years of service after
age&nbsp;45 and retire from the Company at age&nbsp;55 or older.
The Company does not fund its postretirement benefit obligation.
Rather, payments are made as costs are incurred by covered
retirees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with SFAS No.&nbsp;132, &#147;Employers&#146;
Disclosure about Pension and Other Postretirement Benefits,&#148;
the following tables provide a reconciliation of the change in
benefit obligation, the change in plan assets and the net amount
recognized in the consolidated balance sheets (based on a
September&nbsp;30 measurement date, in millions):

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="54%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Pension</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Other Postretirement</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Change in benefit obligation:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Benefit obligation at beginning of year</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">223.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">201.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">70.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">70.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Service cost</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Interest cost</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amendments</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Actuarial (gain)&nbsp;loss</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(15.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(9.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Acquisitions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Benefits paid</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(10.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(7.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Curtailment gain</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Translation adjustment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Benefit obligation at end of year</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">246.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">223.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">83.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">70.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Change in plan assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Fair value of plan assets at beginning of year</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">138.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">138.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Actual return on plan assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Employer contributions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Acquisitions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Benefits paid</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(9.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Translation adjustment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Fair value of plan assets at end of year</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">171.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">138.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">56

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="54%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Pension</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Other Postretirement</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Funded status</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(75.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(85.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(83.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(70.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Unrecognized net actuarial (gain)&nbsp;loss</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(13.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(13.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Unrecognized net transition (asset)&nbsp;obligation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Unrecognized prior service cost</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">26.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net amount recognized</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(50.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(39.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(70.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(60.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Amounts recognized in the consolidated balance sheets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Prepaid benefit cost</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accrued benefit liability</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(94.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(93.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(70.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(60.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Intangible asset</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">22.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">23.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Deferred tax asset</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accumulated other comprehensive income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Net amount recognized</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(50.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(39.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(70.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(60.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1999, the Company recognized a curtailment gain of
approximately $1.8&nbsp;million and $.1&nbsp;million with respect
to pension and other postretirement benefits, respectively, in
conjunction with the employee terminations associated with the
restructuring plan (Note&nbsp;5).

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The projected benefit obligation, accumulated benefit obligation
and fair value of plan assets for the pension plans with
accumulated benefit obligations in excess of plan assets were
$164.4&nbsp;million, $158.2&nbsp;million and $101.7&nbsp;million,
respectively, as of December&nbsp;31, 1999, and
$161.9&nbsp;million, $156.8&nbsp;million and $89.0&nbsp;million,
respectively, as of December&nbsp;31, 1998.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Components of the Company&#146;s net periodic benefit costs are
as follows (in millions):

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="41%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="23"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="23"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="23"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Pension</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Other Postretirement</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Components of net periodic benefit cost:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Service cost</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">20.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Interest cost</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Expected return on plan assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(11.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(10.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(8.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of actuarial (gain)&nbsp; loss</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of transition (asset)&nbsp; obligation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of prior service cost</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Curtailment (gain)&nbsp;loss</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net periodic benefit cost</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">26.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">57

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The actuarial assumptions used in determining the funded status
information and net periodic benefit cost information shown above
were as follows:

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="60%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Other</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Pension</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><FONT size="2"><B>Postretirement</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="7"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Weighted-average assumptions:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Discount rate:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Domestic plans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7&nbsp;3/4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6&nbsp;3/4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7&nbsp;3/4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6&nbsp;3/4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Foreign plans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5&nbsp;1/2- 7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6- 7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Expected return on plan assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Domestic plans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8&nbsp;1/4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Foreign plans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Rate of compensation increase:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Domestic plans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5&nbsp;1/4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4&nbsp;1/4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Foreign plans</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3- 4&nbsp;1/2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3- 4&nbsp;1/2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For measurement purposes, domestic health care costs were assumed
to increase 8.25% in 2000, grading down over time to 5.75% in
six years. Foreign health care costs were assumed to increase
6.3% in 2000, grading down over time to 4.7% in sixteen years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Assumed healthcare cost trend rates have a significant effect on
the amounts reported for the postretirement plans. A 1% rise in
the assumed rate of healthcare cost increases each year would
increase the postretirement benefit obligation as of
December&nbsp;31, 1999 by $13.8&nbsp;million and increase the
postretirement net periodic benefit cost by $2.6&nbsp;million for
the year ended December&nbsp;31, 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company also sponsors defined contribution plans and
participates in government sponsored programs in certain foreign
countries. Contributions are determined as a percentage of each
covered employee&#146;s salary. The Company also participates in
multi-employer pension plans for certain of its hourly employees
and contributes to those plans based on collective bargaining
agreements. The aggregate cost of the defined contribution and
multi-employer pension plans charged to income was
$14.3&nbsp;million, $12.1&nbsp;million and $10.4&nbsp;million for
the years ended December&nbsp;31, 1999, 1998 and 1997,
respectively.

<P align="left"><B>(13)&nbsp; Commitments and Contingencies</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is involved in certain legal actions and claims
arising in the ordinary course of business. The Company does not
believe that these matters, either individually or in the
aggregate, will have a material adverse effect on the
Company&#146;s consolidated financial position or future results
of operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is subject to local, state, federal and foreign laws,
regulations and ordinances, which govern activities or
operations that may have adverse environmental effects and which
impose liability for the costs of cleaning up certain damages
resulting from past spills, disposal or other releases of
hazardous wastes and environmental compliance. The Company&#146;s
policy is to comply with all applicable environmental laws and
to maintain procedures to ensure compliance. However, the Company
has been, and in the future may become, the subject of formal or
informal enforcement actions or procedures. The Company has been
named as a potentially responsible party or is voluntarily
engaged in the cleanup of hazardous wastes at certain sites it
owns, leases or operates, including certain properties acquired
in the UT Automotive acquisition. Certain present and former
properties of UT Automotive are subject to environmental
liabilities which may be significant. The Company obtained
certain agreements and indemnities with respect to possible
environmental liabilities from United Technologies Corporation in
connection with the acquisition of UT Automotive. While the
Company does not believe that the environmental liabilities
associated with its properties will have a

<P align="center">58

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">
material adverse effect on its business, consolidated financial
position or results of future operations, no assurances can be
given in this regard.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Approximately 107,000 of the Company&#146;s workforce worldwide
are subject to collective bargaining agreements. Relationships
with all unions are good, and management does not anticipate any
difficulties with respect to the agreements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lease commitments at December&nbsp;31, 1999 under noncancelable
operating leases with terms exceeding one year are as follows (in
millions):

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="86%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
2000</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">48.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
2001</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
2002</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">32.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
2003</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">26.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
2004</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">22.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
2005 and thereafter</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">203.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s operating leases cover principally buildings
and transportation equipment. Rent expense incurred under all
operating leases and charged to operations was
$56.2&nbsp;million, $60.6&nbsp;million and $37.8&nbsp;million for
the years ended December&nbsp;31, 1999, 1998 and 1997,
respectively.

<P align="left"><B>(14)&nbsp; Stock Option Plans</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has four plans under which it has issued stock
options, the 1992 Stock Option Plan, the 1994 Stock Option Plan,
the 1996 Stock Option Plan and the Long-Term Stock Incentive
Plan. Options issued to date under these plans generally vest
over a three-year period and expire ten years from the original
plan date.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A summary of options transactions during each of the three years
in the period ended December&nbsp;31, 1999 is shown below:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="60%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="8%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Stock Options</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Price Range</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Outstanding at December&nbsp;31,1996</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,685,242</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.29 - $33.00</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Granted</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">554,000</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$37.25</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Expired or cancelled</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(166,685</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.29 - $37.25</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exercised</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,286,059</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.29 - $33.00</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Outstanding at December&nbsp;31, 1997</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,786,498</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.29 - $37.25</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Granted</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">880,350</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$54.22</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Expired or cancelled</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(84,378</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19.26 - $54.22</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exercised</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(320,379</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.29 - $37.25</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Outstanding at December&nbsp;31, 1998</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,262,091</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.00 - $54.22</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Granted</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,059,350</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">$39.00</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Expired or cancelled</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(307,299</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.00 - $54.22</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exercised</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(415,416</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.00 - $37.25</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Outstanding at December&nbsp;31, 1999</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,598,726</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.00 - $54.22</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">59

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes information about options
outstanding as of December&nbsp;31, 1999:

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="29%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>Range of exercise prices</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>$5.00</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>$11.62 - 19.26</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>$20.41 - 25.53</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>$30.25 - 39.00</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>$54.22</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Number outstanding</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">564,410</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">301,032</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">125,134</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,847,200</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">760,950</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Weighted average:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Remaining contractual life (years)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.57</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.24</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.43</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.18</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.38</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Exercise price</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.00</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.49</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">23.83</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">37.35</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">54.22</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Options exercisable:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Number exercisable</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">564,410</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">301,032</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">125,134</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">369,700</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Weighted average exercise price</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.00</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.49</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">23.83</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">32.81</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">N/A</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Long-Term Stock Incentive Plan also permits the grants of
stock appreciation rights, restricted stock, restricted units,
performance shares and performance units (collectively
&#147;Incentive Units&#148;) to officers and other key employees
of the Company. As of December&nbsp;31, 1999, the Company had
outstanding Incentive Units convertible into a maximum of
183,156&nbsp;shares of common stock of the Company, of which
102,974&nbsp;shares are at no cost to the employee and
80,182&nbsp;shares are at an average cost to the employee of
$34.52. Total compensation expense under these plans was
$1.2&nbsp;million, $1.5&nbsp;million and $1.7&nbsp;million for
the years ended December&nbsp;31, 1999, 1998 and 1997,
respectively.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="1%"></TD>
<TD width="99%"></TD>
</TR>

<TR valign="top">
<TD></TD>
<TD>
<I>Pro Forma</I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At December&nbsp;31, 1999 the Company had several stock option
plans, which are described above. The Company applies APB
Opinion&nbsp;25 and related Interpretations in accounting for its
stock option plans. Accordingly, compensation cost was
calculated as the difference between the exercise price of the
option and the market value of the stock at the date the option
was granted. If compensation cost for the Company&#146;s stock
option plans was determined based on the fair value at the grant
dates consistent with the method prescribed in SFAS No.&nbsp;123,
&#147;Accounting for Stock-Based Compensation,&#148; the
Company&#146;s net income and net income per share would have
been reduced to the pro forma amounts indicated below (unaudited,
in millions, except per share data).

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="62%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
As Reported</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income before extraordinary item</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">208.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">207.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Basic income per share before extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.84</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.73</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.14</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Basic net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.84</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.73</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.13</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Diluted income per share before extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.80</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.70</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.05</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Diluted net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.80</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.70</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.04</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Pro forma</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Income before extraordinary item</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">246.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">107.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">204.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">246.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">107.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">203.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Basic income per share before extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.69</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.61</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.08</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Basic net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.69</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.61</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.07</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Diluted income per share before extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.64</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.59</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.99</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Diluted net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.64</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.59</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.98</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">60

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fair value of each option grant is estimated on the date of
grant using the Black-Scholes option pricing model with the
following weighted average assumptions used for grants in 1999,
1998 and 1997: expected dividend yields of 0.0% and expected
lives of 10&nbsp;years. The risk-free interest rates used were
7.75% in 1999, 6.75% in 1998 and 7.5% in 1997. The expected
volatility used was 34.8% in 1999, 33.9% in 1998 and 30.2% in
1997.

<P align="left"><B>(15)&nbsp; Segment Reporting</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company complies with the provisions of SFAS No.&nbsp;131,
&#147;Disclosures about Segments of an Enterprise and Related
Information.&#148; SFAS No.&nbsp;131 establishes standards for
reporting information about operating segments in annual
financial statements and requires selected information about
operating segments in interim financial reports issued to
stockholders. It also establishes standards for related
disclosures about products and services, geographic areas and
major customers.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is organized based on customer-focused and geographic
divisions. Each division reports its results from operations and
makes requests for capital expenditures directly to the chief
operating decision making group. This group is comprised of the
Chairman&nbsp;&#38; Chief Executive Officer, the Vice-Chairman,
the President and Chief Operating Officer and the Chief Financial
Officer. Under this organizational structure, the Company&#146;s
operating segments have been aggregated into one reportable
segment. This aggregated segment consists of ten divisions, each
with separate management teams and infrastructures dedicated to
providing complete automotive interiors to its respective
automotive OEM customers. Each of the Company&#146;s ten
divisions demonstrate similar economic performance, mainly driven
by automobile production volumes in the geographic regions in
which they operate. Also, each division operates in the
competitive &#147;Tier&nbsp;1&#148; automotive supplier
environment and is continually working with its customers to
manage costs without sacrificing quality. The Company&#146;s
manufacturing facilities generally use just-in-time manufacturing
techniques to produce and distribute their automotive interior
products. These techniques include maintaining constant computer
and other communication connections between personnel at the
Company&#146;s plants and personnel at the customers&#146; plants
to keep production current with the customers&#146; demand. The
Other category includes the corporate office, geographic
headquarters, technology division and elimination of intercompany
activities, none of which meet the requirements of being
classified as an operating segment.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The accounting policies of the operating segments are the same as
those described in the summary of significant accounting
policies described in Note&nbsp;2. The Company evaluates the
performance of its operating segments based primarily on sales,
operating income before amortization and cash flow, being defined
as EBITA less capital expenditures plus depreciation.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents revenues and other financial
information by business segment (in millions):

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="53%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Automotive</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Interiors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Other</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Revenues</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,386.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">42.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,428.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
EBITA</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">912.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(122.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">789.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Depreciation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">253.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">264.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Capital expenditures</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">382.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">391.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Total assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,650.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,067.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,717.6</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">61

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="53%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Automotive</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Interiors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Other</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Revenues</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9,050.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9,059.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
EBITA</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">537.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(145.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">391.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Depreciation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">161.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">170.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Capital expenditures</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">307.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">44.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">351.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Total assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,812.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,864.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,677.3</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="53%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Automotive</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Interiors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Other</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Revenues</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7,330.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7,342.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
EBITA</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">652.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(130.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">522.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Depreciation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">135.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">143.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Capital expenditures</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">168.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">187.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Total assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,937.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,521.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,459.1</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents revenues and long-lived assets for
each of the geographic areas in which the Company operates (in
millions):

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="51%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Revenues:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
United States</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,084.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,413.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,609.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Canada</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,612.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">957.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,056.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Germany</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,416.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,345.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">559.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other foreign countries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,316.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,342.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,117.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,428.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9,059.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7,342.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="51%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="3" align="left" valign="top"><FONT size="2">
Long-lived assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
United States</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,274.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">705.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">608.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Canada</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">82.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">82.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">62.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Germany</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">184.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">132.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">101.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Other foreign countries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">659.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">392.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">248.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Total</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,199.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,313.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,021.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A majority of the Company&#146;s consolidated revenues are from
four automotive manufacturing companies. The following is a
summary of the percentage of revenues from major customers:

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="73%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="11"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>Year Ended</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><FONT size="2"><B>December&nbsp;31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="11"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
General Motors Corporation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Ford Motor Company</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
DaimlerChrysler</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Fiat S.p.A</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">62

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, a significant portion of the remaining revenues are
from the above automotive manufacturing companies through various
other automotive suppliers or to affiliates of these automobile
manufacturing companies.

<P align="left"><B>(16)&nbsp; Financial Instruments</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company hedges certain foreign currency risks through the use
of forward foreign exchange contracts and options. Such
contracts are generally deemed as, and are effective as, hedges
of the related transactions. As such, gains and losses from these
contracts are deferred and are recognized on the settlement
date, consistent with the related transactions. The Company
contracted to exchange notional United States dollar equivalent
principal amounts of $217.4&nbsp;million as of December&nbsp;31,
1999 and $289.8&nbsp;million as of December&nbsp;31,&nbsp;1998.
All contracts outstanding as of December&nbsp;31, 1999 mature in
2000. The deferred loss on such contracts as of December&nbsp;31,
1999 was $1.3&nbsp;million compared to a deferred gain of
$.5&nbsp;million as of December&nbsp;31,&nbsp;1998.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The carrying values of the Company&#146;s senior and subordinated
notes vary from the fair values of these instruments. The fair
values were determined by reference to market prices of the
securities in recent public transactions. As of December&nbsp;31,
1999, the aggregate carrying value of the Company&#146;s senior
notes was $1.4&nbsp;billion compared to an estimated fair value
of $1.3&nbsp;billion. As of December&nbsp;31, 1999 and 1998, the
aggregate carrying value of the Company&#146;s subordinated notes
was $336.0&nbsp;million compared to an estimated fair value of
$334.2&nbsp;million and $356.7&nbsp;million, respectively. The
carrying value of the Company&#146;s other senior indebtedness
approximates its fair value which was determined based on rates
currently available to the Company for similar borrowings with
like maturities.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company uses interest rate swap contracts to hedge against
interest rate risks in future periods. As of December&nbsp;31,
1999, the Company had entered into swap contracts with an
aggregate notional value of $800.0&nbsp;million with maturities
between one month and nine years. Pursuant to each of the
contracts, the Company will make payments calculated at a fixed
base rate of between 5.5% and 6.0% of the notional value and will
receive payments calculated at the Libor rate. This effectively
fixes the Company&#146;s interest rate on the portion of the
indebtedness under the primary credit facilities covered by the
contracts. The fair value of these contracts as of
December&nbsp;31, 1999 was a positive $1.7&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Several of the Company&#146;s European subsidiaries factor their
accounts receivable with financial institutions subject to
limited recourse provisions. The amount of such factored
receivables, which is not included in accounts receivable in the
consolidated balance sheets at December&nbsp;31, 1999 and 1998,
was approximately $189.7&nbsp;million and $200.0&nbsp;million,
respectively.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 1998, the Financial Accounting Standards Board issued SFAS
No.&nbsp;133, &#147;Accounting for Derivative Instruments and
Hedging Activities,&#148; which, as amended by SFAS No.&nbsp;137,
is effective for fiscal years beginning after June&nbsp;15,
2000. It requires all derivative instruments to be recorded in
the balance sheet at their fair value. Changes in the fair value
of derivatives are required to be recorded each period in current
earnings or other comprehensive income, depending on whether the
derivative is designated as part of a hedge transaction. We do
not expect the effects of adoption to be significant.

<P align="center">63

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(17)&nbsp; Quarterly Financial Data</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="54%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>Thirteen Weeks Ended</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>April 3,</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>July 3,</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Oct. 2,</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dec. 31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>(Unaudited, in millions, except per share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,687.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,233.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,046.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,461.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Gross profit</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">218.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">339.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">304.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">406.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">74.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">92.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Basic net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.75</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.12</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.59</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.38</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Diluted net income per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.75</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.10</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.58</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.37</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="54%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>Thirteen Weeks Ended</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>March 28,</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>June 27,</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Sept. 26,</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Dec. 31,</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="15"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="15"><FONT size="2"><B>(Unaudited, in millions, except per share data)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,032.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,175.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,946.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,905.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Gross profit</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">200.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">231.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">162.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">267.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income (loss)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">47.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">65.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(19.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Basic net income (loss) per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.71</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.98</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.32</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.29</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Diluted net income (loss) per share</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.69</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.96</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.32</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.28</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">64

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(18)&nbsp; Supplemental Guarantor Condensed Consolidating
Financial Statements</B>

<P align="center">
ASSETS

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="31%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>December&nbsp;31, 1999</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Non-</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Parent</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Current Assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Cash and cash equivalents</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">105.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">106.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accounts receivable, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">102.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">276.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,487.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,866.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Inventories</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">529.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">577.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Recoverable customer engineering and tooling</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">38.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">258.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">304.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">68.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">36.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">193.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">299.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total current assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">223.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">355.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,575.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,154.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Long-Term Assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Property, plant and equipment, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">101.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">249.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,619.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,970.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Goodwill, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">108.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">404.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,697.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,210.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Investment in subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,200.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,701.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5,902.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">252.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">22.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">108.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">382.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total long-term assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,663.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,378.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,424.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5,902.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,563.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,887.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,733.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,999.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5,902.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,717.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>

<TD colspan="22" align="center" valign="top"><FONT size="2"><BR>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</FONT></TD>
</TR>

<TR>
<TD colspan="22">&nbsp;</TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Current Liabilities:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Short-term borrowings</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">78.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">103.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accounts payable and drafts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">201.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">249.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,794.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,245.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accrued liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">205.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">140.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">728.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,074.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current portion of long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">63.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total current liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">535.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">389.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,562.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,487.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Long-Term Liabilities:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Deferred national income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(34.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,054.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">259.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,324.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Intercompany accounts, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,392.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,875.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(482.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">212.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">28.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">182.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">423.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total long-term liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,885.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,953.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(74.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,764.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Stockholders&#146; Equity</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,465.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,390.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,511.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5,902.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,465.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,887.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,733.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,999.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5,902.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,717.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">65

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(18) Supplemental Guarantor Condensed Consolidating Financial
Statements&nbsp;&#151; (continued)</B>

<P align="center">
ASSETS

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="37%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>December&nbsp;31, 1998</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Non-</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Parent</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Current Assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Cash and cash equivalents</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">32.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accounts receivable, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">138.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">294.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">941.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,373.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Inventories</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">45.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">286.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">349.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Recoverable customer engineering and tooling</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">28.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">180.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">221.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">44.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">29.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">149.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">223.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total current assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">224.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">383.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,590.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,198.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Long-Term Assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Property, plant and equipment, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">110.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">320.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">751.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,182.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Goodwill, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">274.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">615.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,129.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,019.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Investment in subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,794.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,815.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">82.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">184.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">277.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total long-term assets</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,261.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">968.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,065.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,815.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,479.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,486.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,351.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,655.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,815.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,677.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>

<TD colspan="22" align="center" valign="top"><FONT size="2"><BR>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current Liabilities:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Short-term borrowings</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">55.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">82.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accounts payable and drafts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">191.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">254.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,155.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,600.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Accrued liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">133.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">141.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">521.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">797.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Current portion of long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total current liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">383.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">396.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,717.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,497.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Long-Term Liabilities:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Deferred national income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(15.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">31.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">23.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,168.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">294.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,463.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Intercompany accounts, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(484.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">666.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(182.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Other</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">134.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">53.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">190.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">377.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Total long-term liabilities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">802.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">751.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">325.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,879.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
Stockholders&#146; Equity</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,300.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">202.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,612.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,815.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,300.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,486.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,351.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,655.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,815.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5,677.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">66

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(18)&nbsp; Supplemental Guarantor Condensed Consolidating
Financial Statements&nbsp;&#151;&nbsp;(continued)</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="35%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1999</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Non-</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Parent</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,147.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,159.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11,542.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,420.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12,428.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cost of sales</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,069.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,889.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10,621.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,420.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11,159.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Selling, general and administrative expenses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">174.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">32.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">276.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">483.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Restructuring and other charges (credits)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">11.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">61.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">76.6</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Operating income (loss)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(99.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">224.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">587.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">713.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">80.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">135.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">235.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Intercompany charges, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(293.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">156.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">137.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other (income) expense, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(13.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">43.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Income (loss) before provision (credit) for national income
taxes, minority interests in consolidated subsidiaries, and
equity in net (income) loss of affiliates and subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">127.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(73.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">388.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">443.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Provision (credit)&nbsp;for national income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">34.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(19.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">159.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">174.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Minority interests in consolidated subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Equity in net (income) loss of affiliates</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Equity in net income of subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(167.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(262.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">430.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">209.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">220.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(430.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">257.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">67

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(18)&nbsp; Supplemental Guarantor Condensed Consolidating
Financial Statements&nbsp;&#151; (continued)</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="40%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Non-</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Parent</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,213.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,629.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,951.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,734.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9,059.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cost of sales</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,210.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,279.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,442.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1,734.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8,198.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Selling, general and administrative expenses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">122.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">31.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">182.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">337.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Restructuring and other charges</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">109.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">133.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">28.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">49.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Operating income (loss)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(139.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">292.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">188.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">342.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">35.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">47.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">110.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Intercompany charges, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(161.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">45.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other (income) expense, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(11.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">24.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Income (loss) before provision (credit) for national income
taxes, minority interests in consolidated subsidiaries and equity
in net income of affiliates and subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(17.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">141.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">91.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">214.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Provision (credit)&nbsp;for national income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">48.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">93.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Minority interests in consolidated subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Equity in net income of affiliates</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Equity in net income of subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(126.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(7.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">133.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">100.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(133.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">115.5</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">68

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="5%"></TD>
<TD width="95%"></TD>
</TR>

<TR valign="top">
<TD><B>(18)&nbsp;</B></TD>
<TD>
<B>Supplemental Guarantor Condensed Consolidating Financial
Statements&nbsp;&#151; (continued)</B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="36%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Non-</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Parent</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net sales</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">746.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,039.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,577.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(21.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7,342.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cost of sales</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">735.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,753.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4,065.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(21.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6,533.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Selling, general and administrative expenses</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">79.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">74.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">133.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">286.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Amortization of goodwill</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">41.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Operating income (loss)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(71.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">194.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">358.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">481.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Interest expense</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">31.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">67.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">101.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Intercompany charges, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(108.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">56.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">52.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other (income) expense, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">34.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Income (loss) before provision (credit) for national income
taxes, minority interests in consolidated subsidiaries, equity in
net income of affiliates and subsidiaries and extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">121.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">228.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">345.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Provision (credit)&nbsp;for national income taxes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">55.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">89.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">143.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Minority interests in consolidated subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Equity in net income of affiliates</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(8.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Equity in net income of subsidiaries</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(204.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(20.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">224.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Income before extraordinary item</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">207.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">87.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">138.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(224.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">208.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Extraordinary loss on early extinguishment of debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net income</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">207.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">87.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">137.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(224.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">207.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">69

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(18)&nbsp; Supplemental Guarantor Condensed Consolidating
Financial Statements&nbsp;&#151;&nbsp;(continued)</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="35%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1999</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Non-</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Parent</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net Cash Provided by Operating Activities</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">218.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">335.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">560.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cash Flows from Investing Activities:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Additions to property, plant and equipment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(56.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(40.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(295.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(391.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cost of acquisitions, net of cash acquired</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,296.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(182.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,478.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Proceeds from disposition of business segment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">310.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">310.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">21.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net cash used in investing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(54.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,023.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(460.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,538.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Cash Flows from Financing Activities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Senior notes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,400.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,400.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Long-term revolving credit borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">560.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">560.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other long-term debt borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(27.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(8.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(26.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Short-term borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">23.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Change in intercompany accounts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2,094.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,005.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">89.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Proceeds from sale of common stock, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">7.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Purchase of treasury stock, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(15.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(15.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Increase (decrease) in drafts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">10.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">107.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">118.8</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(24.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(24.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net cash provided by (used in) financing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(160.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,016.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">181.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2,038.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Effect of foreign currency translation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net Change in Cash and Cash Equivalents</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">72.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">76.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cash and Cash Equivalents at Beginning of Period</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">32.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cash and Cash Equivalents at End of Period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">105.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">106.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">70

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(18)&nbsp; Supplemental Guarantor Condensed Consolidating
Financial Statements &#151; (continued)</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="38%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Non-</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Parent</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Net Cash Provided by Operating Activities</B></FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">46.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">177.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">61.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">285.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Cash Flows from Investing Activities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Additions to property, plant and<BR>
equipment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(69.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(54.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(227.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(351.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Acquisitions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(89.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(238.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(328.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net cash used in investing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(156.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(54.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(467.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(677.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Cash Flows from Financing Activities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Long-term revolving credit borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">365.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(48.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">317.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other long-term debt borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">46.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">58.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Short-term borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">43.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Proceeds from sale of common stock, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Purchase of treasury stock, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(18.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Decrease in drafts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(19.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(19.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Change in intercompany accounts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(317.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(122.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">439.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net cash provided by (used in) financing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">106.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(122.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">399.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">383.8</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Effect of foreign currency translation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">25.7</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net Change in Cash and Cash Equivalents</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">19.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cash and Cash Equivalents at Beginning of Period</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cash and Cash Equivalents at End of Period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">32.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">71

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(18) Supplemental Guarantor Condensed Consolidating Financial
Statements&nbsp;&#151; (continued)</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="40%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>For the Year Ended December&nbsp;31, 1997</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="7"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Non-</B></FONT></TD>
<TD></TD>
<TD colspan="7"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Parent</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Guarantors</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Eliminations</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Consolidated</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net Cash Provided by (Used in) Operating Activities</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(26.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">156.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">319.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">449.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Cash Flows from Investing Activities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Additions to property, plant and equipment</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(12.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(49.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(125.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(187.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Acquisitions</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(36.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(295.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(332.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(14.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">17.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net cash used in investing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(64.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(51.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(404.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(519.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Cash Flows from Financing Activities:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Long-term revolving credit borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(53.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">190.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">136.9</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other long-term debt borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(134.5</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(133.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Short-term borrowings, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">24.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Proceeds from sale of common stock, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Increase (decrease) in drafts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Change in intercompany accounts</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">237.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(100.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(137.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other, net</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.3</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net cash provided by (used in) financing activities</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">88.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(99.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">39.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Effect of foreign currency translation</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;&nbsp;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.2</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Net Change in Cash and Cash Equivalents</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">4.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(16.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(13.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
<B>Cash and Cash Equivalents at Beginning of Period</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(4.1</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">29.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">26.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Cash and Cash Equivalents at End<BR>
of Period</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">13.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">72

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left"><B>(18)&nbsp; Supplemental Guarantor Condensed Consolidating
Financial Statements&nbsp;&#151; (continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Basis of Presentation&nbsp;&#151; In connection with the
acquisition of UT&nbsp;Automotive, Inc., a wholly-owned
subsidiary of United Technologies Corporation
(&#147;UT&nbsp;Automotive&#148;)(see Notes&nbsp;3 and 10), the
Company issued $1.4&nbsp;billion in securities, which consist of
$600&nbsp;million aggregate principal amount of 7.96%&nbsp;Senior
Notes due May&nbsp;15, 2005 and $800&nbsp;million aggregate
principal amount of 8.11%&nbsp;Senior Notes due May&nbsp;15,
2009. Certain of the Company&#146;s domestic wholly-owned
subsidiaries (the &#147;Guarantors&#148;) irrevocably and
unconditionally fully guaranteed on a joint and several basis the
punctual payment when due, whether at stated maturity, by
acceleration or otherwise, of all of the Company&#146;s
obligations under the senior notes indenture, including the
company&#146;s obligations to pay principal, premium, if any, and
interest with respect to the senior notes. The Guarantors on the
date of the indenture and as of December&nbsp;31, 1999 were Lear
Operations Corporation and Lear Corporation Automotive Holdings
(formerly, UT&nbsp;Automotive). In lieu of providing separate
audited financial statements for the Guarantors, the Company has
included the audited consolidating condensed financial statements
on pages&nbsp;65 to 72. Management does not believe that
separate financial statements of the Guarantors are material to
investors. Therefore, separate financial statements and other
disclosures concerning the Guarantors are not presented.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Distributions</I>&nbsp;&#151; There are no significant
restrictions on the ability of the Company to sell or otherwise
dispose of any or all of the assets of any of the Guarantors or
on the ability of the Guarantors to make distributions to the
Company.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, General and Administrative Expenses</I>&nbsp;&#151;
During 1999, 1998 and 1997, the Parent allocated
$62.2&nbsp;million, $64.5&nbsp;million and $67.4&nbsp;million,
respectively, of corporate selling, general and administrative
expenses to its operating subsidiaries. The allocations were
based on various factors which estimate usage of particular
corporate functions, and in certain instances, other relevant
factors were used, such as the revenues or headcount of the
Company&#146;s subsidiaries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Long-term debt of the Parent and the Guarantors</I>
&nbsp;&#151; Long-term debt of the Parent and the Guarantors on a
combined basis consisted of the following at December&nbsp;31
(in millions):

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="72%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1999</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>1998</B></FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
Senior Notes</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,400.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Credit agreement</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,275.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">755.1</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Other long-term debt</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">104.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">81.5</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Subordinated notes</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">336.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">336.0</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,115.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,172.6</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
Less current portion</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(50.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3,064.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">1,168.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The obligations of foreign subsidiary borrowers under the primary
credit facilities are guaranteed by the Parent.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For a more detailed description of the above indebtedness, see
Note&nbsp;10 to the Consolidated Financial Statements.

<P align="center">73

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B>LEAR CORPORATION AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Aggregate minimum principal payment requirements on long-term
debt of the Parent and the Guarantors, including capital lease
obligations, in each of the five years subsequent to
December&nbsp;31, 1999 are as follows:

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="83%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
</TR>

<TR>
<TD align="center" nowrap><FONT size="2"><B>Year</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Maturities</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD align="left" valign="top"><FONT size="2">
2000</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">50.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2001</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">450.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2002</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">125.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2003</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">286.2</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD align="left" valign="top"><FONT size="2">
2004</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">575.1</FONT></TD>
<TD></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">74

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS" -->
<DIV align="left"><A NAME="012"></A></DIV>

<P align="center"><B>REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS</B>

<P align="left">To Lear Corporation:

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have audited in accordance with auditing standards generally
accepted in the United States, the consolidated financial
statements of LEAR CORPORATION AND SUBSIDIARIES (&#147;the
Company&#148;) included in this Form&nbsp;10-K, and have issued
our report thereon dated January&nbsp;28, 2000. Our audit was
made for the purpose of forming an opinion on the basic
consolidated financial statements taken as a whole. The schedule
on page&nbsp;76 is the responsibility of the Company&#146;s
management and is presented for purposes of complying with the
Securities and Exchange Commission&#146;s rules and is not part
of the basic consolidated financial statements. This schedule has
been subjected to the auditing procedures applied in the audit
of the basic consolidated financial statements and, in our
opinion, fairly states in all material respects the financial
data required to be set forth therein in relation to the basic
consolidated financial statements taken as a whole.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="38%"></TD>
<TD width="62%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
/s/ ARTHUR ANDERSEN&nbsp;LLP</TD>
</TR>

</TABLE>

<P align="left">
Detroit, Michigan

<DIV align="left">
January&nbsp;28, 2000.
</DIV>

<P align="center">75

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><B>LEAR CORPORATION AND SUBSIDIARIES</B>

<DIV>&nbsp;</DIV>

<!-- link1 "SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS" -->
<DIV align="left"><A NAME="013"></A></DIV>

<DIV align="center">
<B>SCHEDULE&nbsp;II&nbsp;&#151; VALUATION AND QUALIFYING ACCOUNTS
</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="3%">&nbsp;</TD>
<TD width="44%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Balance at</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Balance</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Beginning</B></FONT></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Other</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>at End</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Of Period</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Additions</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Retirements</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Changes</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>of Period</B></FONT></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD colspan="19"></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="center" nowrap colspan="19"><FONT size="2"><B>(In millions)</B></FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
<B>For the Year Ended December&nbsp;31, 1997:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Valuation of accounts deducted from related assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Allowance for doubtful accounts</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">5.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(2.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.7</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Reserve for unmerchantable inventories</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">9.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(3.7</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(6.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27.1</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
<B>For the Year Ended December&nbsp;31, 1998:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Valuation of accounts deducted from related assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Allowance for doubtful accounts</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.8</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.3</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.0</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Reserve for unmerchantable inventories</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">12.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">8.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(5.6</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">27.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(11.4</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(1.2</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.9</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2" align="left" valign="top"><FONT size="2">
<B>For the Year Ended December&nbsp;31, 1999:</B></FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Valuation of accounts deducted from related assets:</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Allowance for doubtful accounts</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">16.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(15.0</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">2.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.3</FONT></TD>
<TD></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Reserve for unmerchantable inventories</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">14.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(14.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">15.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">34.4</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="1"></TD>
<TD></TD>

</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">30.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">33.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">(29.9</FONT></TD>
<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">18.0</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
<TD align="right" valign="bottom" nowrap><FONT size="2">52.7</FONT></TD>
<TD></TD>
</TR>

<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>
<TD></TD>
<TD></TD>
<TD align="left"><HR size="4" noshade></TD>
<TD></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">76

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><B>Item&nbsp;9&nbsp;&#151; Changes in and Disagreements with
Accountants on Accounting and Financial Disclosure</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There has been no disagreement between the management of the
Company and the Company&#146;s accountants on any matter of
accounting principles or practices or financial statement
disclosures.

<!-- link1 "PART III" -->
<DIV align="left"><A NAME="014"></A></DIV>

<P align="center"><B>PART&nbsp;III</B>

<P align="left"><B>Item&nbsp;10&nbsp;&#151; Directors and Executive Officers of
the Company</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Incorporated by reference from the Proxy Statement sections
entitled &#147;Election of Directors&#148; and
&#147;Management.&#148; Required information on our executive
officers appears on pages&nbsp;19-20 of Part&nbsp;I of this
Report.

<P align="left"><B>Item 11&nbsp;&#151; Executive Compensation</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Incorporated by reference from the Proxy Statement section
entitled &#147;Executive Compensation.&#148;

<P align="left"><B>Item&nbsp;12&nbsp;&#151; Security Ownership of Certain
Beneficial Owners and Management</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Incorporated by reference from the Proxy Statement section
entitled &#147;Management&nbsp;&#151; Security Ownership of
Certain Beneficial Owners and Management.&#148;

<P align="left"><B>Item&nbsp;13&nbsp;&#151; Certain Relationships and Related
Transactions</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Incorporated by reference from the Proxy Statement section
entitled &#147;Certain Transactions.&#148;

<P align="center">77

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "PART IV" -->
<DIV align="left"><A NAME="015"></A></DIV>

<P align="center"><B>PART&nbsp;IV</B>

<P align="left"><B>ITEM 14&nbsp;&#151; Exhibits, Financial Statement Schedule and
Reports on Form 8-K</B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>(a)</TD>
<TD align="left">
The following documents are filed as part of this Form&nbsp;10-K.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="3%"></TD>
<TD width="94%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>1.&nbsp;</TD>
<TD align="left">
Consolidated Financial Statements:</TD>
</TR>

</TABLE>

<P align="left">
Report of Independent Public Accountant

<P align="left">
Consolidated Balance Sheets as of December&nbsp;31, 1999 and
1998.

<P align="left">
Consolidated Statements of Income for the years ended
December&nbsp;31, 1999, 1998 and 1997.

<P align="left">
Consolidated Statements of Stockholders&#146; Equity for the
years ended December&nbsp; 31, 1999, 1998 and 1997.

<P align="left">
Consolidated Statements of Cash Flows for the years ended
December 31, 1999, 1998 and 1997.

<P align="left">
Notes to Consolidated Financial Statements
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="3%"></TD>
<TD width="94%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>2.&nbsp;</TD>
<TD align="left">
Financial Statements Schedule:</TD>
</TR>

</TABLE>

<DIV align="left">
Report of Independent Public Accountants
</DIV>

<P align="left">
Schedule&nbsp;II&nbsp;&#151; Valuation and Qualifying Accounts

<DIV align="left">
All other financial statement schedules are omitted because such
schedules are not required or the information required has been
presented in the aforementioned financial statements.
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="3%"></TD>
<TD width="94%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD>3.&nbsp;</TD>
<TD align="left">
The exhibits listed on the &#147;Index to Exhibits&#148; on
pages&nbsp;79 through 81 are filed with this Form&nbsp;10-K or
incorporated by reference as set forth below.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>(b)</TD>
<TD align="left">
The following reports and registration statements were filed
during the quarter ended December&nbsp;31, 1999.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="6%"></TD>
<TD width="94%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
Form&nbsp;S-4/ A (filed October&nbsp;18, 1999) related to the
exchange offer of senior notes.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
Form&nbsp;8-K/ A (filed October&nbsp;19, 1999) related to the
acquisition of Delphi Automotive Systems seating business.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
Form&nbsp;S-4/ A (filed November&nbsp;9, 1999) related to the
exchange offer of senior notes.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
Form&nbsp;10-Q (filed November&nbsp;16, 1999) related to third
quarter 1999 results.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
Form&nbsp;10-Q/ A (filed December&nbsp;15, 1999) related to third
quarter 1999 results.</TD>
</TR>

<TR>
<TD>&nbsp;</TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
Form&nbsp;S-4/ A (filed December&nbsp;15, 1999) related to the
exchange offer of senior notes.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="3%"></TD>
<TD width="97%"></TD>
</TR>

<TR valign="top">
<TD>(c)</TD>
<TD align="left">
The exhibits listed on the &#147;Index to Exhibits&#148; on
pages&nbsp;79 through 81 are filed with this Form&nbsp;10-K or
incorporated by reference as set forth below.</TD>
</TR>

</TABLE>

<P align="left">
(d)&nbsp;Additional Financial Statement Schedules.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
<TD width="6%"></TD>
<TD width="94%"></TD>
</TR>

<TR valign="top">
<TD>&nbsp;</TD>
<TD align="left">
None.</TD>
</TR>

</TABLE>

<P align="center">78

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "INDEX TO EXHIBITS" -->
<DIV align="left"><A NAME="016"></A></DIV>

<P align="center"><B>INDEX TO EXHIBITS</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
<TD></TD>
<TD></TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>Exhibit</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">3.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Restated Certificate of Incorporation of the Company
(incorporated by reference to Exhibit&nbsp;3.1 to the
Company&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter
ended March&nbsp; 30, 1996).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">3.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated By-laws of the Company (incorporated by
reference to Exhibit&nbsp;99.3 to the Company&#146;s Current
Report on Form&nbsp;8-K filed March&nbsp;2, 2000).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">3.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Certificate of Incorporation of Lear Operations Corporation
(incorporated by reference to Exhibit&nbsp;3.3 to the
Company&#146;s Registration Statement on Form&nbsp;S-4
(No.&nbsp;333-81255)).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">3.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
By-laws of Lear Operations Corporation (incorporated by reference
to Exhibit&nbsp;3.4 to the Company&#146;s Registration Statement
on Form&nbsp;S-4 (No.&nbsp;333-81255)).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">3.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amended and Restated Certificate of Incorporation of Lear
Corporation Automotive Holdings (incorporated by reference to
Exhibit&nbsp;3.5 to the Company&#146;s Registration Statement on
Form&nbsp;S-4 (No.&nbsp;333-81255)).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">3.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
By-laws of Lear Corporation Automotive Holdings (incorporated by
reference to Exhibit&nbsp;3.6 to the Company&#146;s Registration
Statement on Form&nbsp;S-4 (No.&nbsp;333-81255)).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">4.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Indenture dated as of July&nbsp;1, 1996 by and between the
Company and the Bank of New&nbsp;York, as trustee, relating to
the 9&nbsp;1/2%&nbsp;Subordinated Notes due 2006 (incorporated by
reference to Exhibit&nbsp;4.1 to the Company&#146;s Quarterly
Report on Form&nbsp;10-Q for the quarter ended September&nbsp;28,
1996).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">4.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Indenture dated as of February&nbsp;1, 1994 by and between Lear
and The First National Bank of Boston, as Trustee, relating to
the 8&nbsp;1/4%&nbsp;Subordinated Notes (incorporated by
reference to Exhibit&nbsp;4.1 to the Company&#146;s Transition
Report on Form&nbsp; 10-K filed on March&nbsp;31, 1994).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">4.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Indenture dated as of May&nbsp;15, 1999, by and among Lear
Corporation as Issuer, the Guarantors party thereto from time to
time and the Bank of New&nbsp;York as Trustee (incorporated by
reference to Exhibit&nbsp;10.8 to the Company&#146;s Quarterly
Report on Form&nbsp;10-Q for the quarter ended April&nbsp; 3,
1999).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">4.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Rights Agreement dated as of March&nbsp;1, 2000, between the
Company and the Bank of New&nbsp;York (incorporated by reference
to the Company&#146;s Registration Statement on Form&nbsp;8-A
filed March&nbsp;2, 2000.)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Second Amended and Restated Credit and Guarantee Agreement, dated
as of May&nbsp;4, 1999, among Lear, Lear Corporation
Canada&nbsp;Ltd., the Foreign Subsidiary Borrowers (as defined
therein), the Lenders Party thereto, Bankers Trust Company and
Bank of America National Trust&nbsp;&#38; Savings Association, as
Co-Syndication Agents, The Bank of Nova Scotia, as Documentation
Agent and Canadian Administrative Agent, and The Chase Manhattan
Bank, as General Administrative Agent (incorporated by reference
to Exhibit&nbsp;10.1 to the Company&#146;s Current Report on
Form&nbsp;8-K dated May&nbsp;4, 1999).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.2</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Revolving Credit and Term Loan Agreement, dated as of May&nbsp;
4, 1999, among Lear, certain of its Foreign Subsidiaries, the
Lenders parties thereto, Citicorp USA,&nbsp;Inc. and Morgan
Stanley Senior Funding,&nbsp;Inc., as Co-Syndication Agents,
Toronto Dominion (Texas),&nbsp;Inc., as Documentation Agent, the
other Agents named therein, and The Chase Manhattan Bank, as
Administrative Agent (incorporated by reference to Exhibit&nbsp;
10.3 to the Company&#146;s Current Report on Form&nbsp;8-K dated
May&nbsp; 4, 1999).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.3</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Employment Agreement dated March&nbsp;20, 1995 between the
Company and Kenneth&nbsp;L. Way (incorporated by reference to
Exhibit&nbsp;10.9 to the Company&#146;s Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 1994).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.4</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Employment Agreement dated March&nbsp;20, 1995 between the
Company and Robert&nbsp;E. Rossiter (incorporated by reference to
Exhibit&nbsp;10.10 to the Company&#146;s Annual Report on
Form&nbsp; 10-K for the year ended December&nbsp;31, 1994).</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">79

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
<TD></TD>
<TD></TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>Exhibit</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.5</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Employment Agreement dated March&nbsp;20, 1995 between the
Company and James&nbsp;H. Vandenberghe (incorporated by reference
to Exhibit&nbsp;10.11 to the Company&#146;s Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 1994).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.6</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Employment Agreement dated March&nbsp;20, 1995 between the
Company and Donald&nbsp;J. Stebbins (incorporated by reference to
Exhibit&nbsp;10.8 to the Company&#146;s Annual Report on
Form&nbsp; 10-K for the year ended December&nbsp;31, 1998).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.7</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear&#146;s 1992 Stock Option Plan (incorporated by reference to
Exhibit 10.7 to the Company&#146;s Annual Report on
Form&nbsp;10-K for the year ended June&nbsp;30, 1993).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.8</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Amendment to Lear&#146;s 1992 Stock Option Plan (incorporated by
reference to Exhibit&nbsp;10.26 to the Company&#146;s Transition
Report on Form&nbsp;10-K filed on March&nbsp;31, 1994).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.9</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear&#146;s 1994 Stock Option Plan (incorporated by reference to
Exhibit 10.27 to the Company&#146;s Transition Report on
Form&nbsp; 10-K filed on March&nbsp;31, 1994).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.10</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Masland Corporation 1993 Stock Option Incentive Plan
(incorporated by reference to Exhibit&nbsp;99.5 to the
Company&#146;s Current Report on Form&nbsp;8-K dated
June&nbsp;27, 1995).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.11</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear&#146;s Supplemental Executive Retirement Plan, dated as of
January&nbsp;1, 1995 (incorporated by reference to Exhibit&nbsp;
10.28 to the Company&#146;s Annual Report on Form&nbsp;10-K for
the year ended December&nbsp;31, 1994).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.12</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear Corporation 1996 Stock Option Plan, as amended and restated
(incorporated by reference to Exhibit&nbsp;10.1 to the
Company&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter
ended June&nbsp;28, 1997)</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.13</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear Corporation Long-Term Stock Incentive Plan, as amended and
restated (incorporated by reference to Exhibit&nbsp;10.2 to the
Company&#146;s quarterly Report on Form&nbsp;10-Q for the quarter
ended June&nbsp;28, 1997.</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.14</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear Corporation Outside Directors Compensation Plan, as amended
and restated (incorporated by reference to Exhibit&nbsp; 10.3 to
the Company&#146;s quarterly Report on Form&nbsp;10-Q for the
quarter ended June&nbsp;28, 1997.</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.15</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of the Lear Corporation Long-Term Stock Incentive Plan
Deferral and Restricted Stock Unit Agreement (incorporated by
reference to Exhibit&nbsp;10.29 to the Company&#146;s Annual
Report on Form&nbsp;10-K for the year ended December&nbsp;31,
1997).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.16</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Form of the Lear Corporation 1996 Stock Option Plan Stock Option
Agreement (incorporated by reference to Exhibit&nbsp; 10.30 to
the Company&#146;s Annual Report on Form&nbsp;10-K for the year
ended December&nbsp;31, 1997).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.17</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Restricted Property Agreement dated as of December&nbsp;17, 1997
between the Company and Robert&nbsp;E. Rossiter (incorporated by
reference to Exhibit&nbsp;10.29 to the Company&#146;s Annual
Report on Form&nbsp;10-K for the year ended December&nbsp;31,
1997).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.18</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear Corporation 1992 Stock Option Plan, Third Amendment dated
March&nbsp;14, 1997 (incorporated by reference to Exhibit&nbsp;
10.30 to the Company&#146;s Annual Report on Form&nbsp;10-K for
the year ended December&nbsp;31, 1997).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.19</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear Corporation 1992 Stock Option plan, Fourth Amendment dated
August&nbsp;4, 1997 (incorporated by reference to Exhibit&nbsp;
10.31 to the Company&#146;s Annual Report on Form&nbsp;10-K for
the year ended December&nbsp;31, 1997).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.20</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear Corporation 1994 Stock Option Plan, Second Amendment
effective January&nbsp;1, 1996 (incorporated by reference to
Exhibit&nbsp;10.28 to the Company&#146;s Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 1998).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.21</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear Corporation 1994 Stock Option Plan, Third Amendment
effective March&nbsp;14, 1997 (incorporated by reference to
Exhibit&nbsp;10.29 to the Company&#146;s Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 1998).</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">80

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
<TD width="7%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="6%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Exhibit</B></FONT></TD>
<TD></TD>
<TD></TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number</B></FONT></TD>
<TD></TD>
<TD align="center" nowrap><FONT size="2"><B>Exhibit</B></FONT></TD>
</TR>

<TR>
<TD align="center" nowrap colspan="3"><HR size="1"></TD>
<TD></TD>
<TD align="center" nowrap><HR size="1"></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.22</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Lear Corporation Long-Term Stock Incentive Plan, Third Amendment
effective February&nbsp;26, 1998 (incorporated by reference to
Exhibit 10.30 to the Company&#146;s Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 1998).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.23</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
The Master Sale and Purchase Agreement between General Motors
Corporation and the Company, dated August&nbsp;31, 1998, relating
to the sale and purchase of the world-wide seating business
operated by The Delphi Interior&nbsp;&#38; Lighting System
Division of General Motors Corporation&#146;s Delphi Automotive
Systems business sector (incorporated by reference to
Exhibit&nbsp;10.31 to the Company&#146;s Annual Report on
Form&nbsp;10-K for the year ended December&nbsp;31, 1998).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.24</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Stock Purchase Agreement dated as of March&nbsp;16, 1999, by and
between Nevada Bond Investment Corp.&nbsp;II and Lear Corporation
(incorporated by reference to Exhibit&nbsp;99.1 to the
Company&#146;s Current Report on Form&nbsp;8-K dated
March&nbsp;16, 1999).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.25</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Stock Purchase Agreement dated as of May&nbsp;7, 1999, between
Lear Corporation and Johnson Electric Holdings Limited
(incorporated by reference to Exhibit&nbsp;10.1 to the
Company&#146;s Current Report on Form&nbsp;8-K dated May&nbsp;7,
1999).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.26</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Purchase Agreement dated as of May&nbsp;13, 1999, among Lear
Corporation, Lear Operations Corporation, Lear Corporation
Automotive Holdings and Morgan Stanley&nbsp;&#38;&nbsp;Co.
Incorporated, Salomon Smith Barney&nbsp;Inc., Chase
Securities&nbsp;Inc., Credit Suisse First Boston Corporation,
Deutsche Bank Securities&nbsp; Inc., NationsBanc Montgomery
Securities&nbsp;LLC, Scotia Capital Markets (USA)&nbsp;Inc. and
TD Securities (USA)&nbsp;Inc. (incorporated by reference to
Exhibit&nbsp;10.6 to the Company&#146;s Quarterly Report on
Form&nbsp;10-Q for the quarter ended April&nbsp; 3, 1999).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">10.27</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Registration Rights Agreement dated as of May&nbsp;18, 1999,
among Lear Corporation, Lear Operations Corporation, Lear
Corporation Automotive Holdings and Morgan
Stanley&nbsp;&#38;&nbsp;Co. Incorporated, Salomon Smith
Barney&nbsp;Inc., Chase Securities&nbsp; Inc., Credit Suisse
First Boston Corporation, Deutsche Bank Securities&nbsp;Inc.,
NationsBanc Montgomery Securities&nbsp;LLC, Scotia Capital
Markets (USA)&nbsp;Inc. and TD Securities (USA)&nbsp; Inc.
(incorporated by reference to Exhibit&nbsp;10.7 to the
Company&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter
ended April&nbsp;3, 1999).</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">11.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Computation of income (loss) per share, filed herewith.</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">21.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
List of subsidiaries of the Company, filed herewith.</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">23.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Consent of Arthur Andersen&nbsp;LLP, filed herewith.</FONT></TD>
</TR>

<TR>
<TD></TD>
<TD align="right" valign="top" nowrap><FONT size="2">27.1</FONT></TD>
<TD></TD>
<TD></TD>
<TD align="left" valign="top"><FONT size="2">
Financial Data Schedule, filed herewith.</FONT></TD>
</TR>

</TABLE>
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<H5 align="left"><A HREF="#toc">Table of Contents</A></H5><P>

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<DIV align="left"><A NAME="017"></A></DIV>

<P align="center"><B>SIGNATURES</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of Section&nbsp;13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized on March&nbsp;22, 2000.
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<TD>&nbsp;</TD>
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Lear Corporation</TD>
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<TD>&nbsp;</TD>
<TD>By:&nbsp;</TD>
<TD align="center">
/s/ KENNETH L. WAY</TD>
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<TD>&nbsp;</TD>
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<TD>&nbsp;</TD>
<TD align="center">
Kenneth&nbsp;L. Way</TD>
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<TD>&nbsp;</TD>
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Chairman of the Board and</TD>
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<TD>&nbsp;</TD>
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Chief Executive Officer</TD>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of Lear Corporation and in the capacities indicated on
March&nbsp;22, 2000.

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<TD width="48%">&nbsp;</TD>
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<TD width="49%">&nbsp;</TD>
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/s/ KENNETH&nbsp;L. WAY<BR>
<HR size="1">Kenneth&nbsp;L. Way<BR>
Chairman of the Board<BR>
of Directors and<BR>
Chief Executive Officer</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
/s/ LARRY&nbsp;W. MCCURDY<BR>
-----------------------------------------------------<BR>
Larry&nbsp;W. McCurdy<BR>
a Director</FONT></TD>
</TR>

<TR>
<TD align="center" valign="top"><FONT size="2">
/s/ ROBERT&nbsp;E. ROSSITER<BR>
<HR size="1">Robert&nbsp;E. Rossiter<BR>
President and Chief Operating<BR>
Officer and a Director</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
/s/ IRMA&nbsp;B. ELDER<BR>
-----------------------------------------------------<BR>
Irma&nbsp;B. Elder<BR>
a Director</FONT></TD>
</TR>

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<TD align="center" valign="top"><FONT size="2">
/s/ JAMES&nbsp;H. VANDENBERGHE<BR>
<HR size="1">James&nbsp;H. Vandenberghe<BR>
Vice Chairman of the<BR>
Board of Directors</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
/s/ ROY&nbsp;E. PARROTT<BR>
-----------------------------------------------------<BR>
Roy&nbsp;E. Parrott<BR>
a Director</FONT></TD>
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<TD align="center" valign="top"><FONT size="2">
/s/ DONALD&nbsp;J. STEBBINS<BR>
<HR size="1">Donald&nbsp;J. Stebbins<BR>
Senior Vice President and<BR>
Chief Financial Officer<BR>
(Principal Financial Officer)</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
/s/ ROBERT&nbsp;W. SHOWER<BR>
-----------------------------------------------------<BR>
Robert&nbsp;W. Shower<BR>
a Director</FONT></TD>
</TR>

<TR>
<TD align="center" valign="top"><FONT size="2">
/s/ DAVID&nbsp;C. WAJSGRAS<BR>
<HR size="1">David&nbsp;C. Wajsgras<BR>
Vice President and<BR>
Corporate Controller<BR>
(Principal Accounting Officer)</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
/s/ DAVID&nbsp;P. SPALDING<BR>
-----------------------------------------------------<BR>
David&nbsp;P. Spalding<BR>
a Director</FONT></TD>
</TR>

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<TD align="center" valign="top"><FONT size="2">
/s/ DAVID BING<BR>
<HR size="1">David Bing<BR>
a Director</FONT></TD>
<TD></TD>
<TD align="center" valign="top"><FONT size="2">
/s/ JAMES&nbsp;A. STERN<BR>
-----------------------------------------------------<BR>
James&nbsp;A. Stern<BR>
a Director</FONT></TD>
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