SOUTHFIELD, Mich., July 1 /PRNewswire-FirstCall/ --

       Debt Restructuring Agreement Supported by Steering Committees of
                      Secured Lenders and Bondholders
       Lear Anticipates Implementing Restructuring Through an Expedited
    Chapter 11 Plan Process Involving the Company and Certain of its U.S. and
                            Canadian Subsidiaries
    Company Obtains $500 Million in New Money Debtor-In-Possession Financing
      That Will Convert to Exit Financing Upon Lear's Exit From Chapter 11
    Restructuring Provides Protection for Customers and Suppliers, Including
                Paying Vast Majority of Trade Creditors In Full
               Global Operations to Continue Without Disruption
      Deleveraged Capital Structure Will Strengthen Long-Term Competitiveness

Lear Corporation (NYSE: LEA), a leading global supplier of automotive seating systems, electrical distribution systems and electronic products, announced today that the Company has reached an agreement in principle regarding a consensual debt restructuring with steering committees representing its secured lenders and its bondholders. The Company plans to commence shortly the proposed restructuring under court supervision pursuant to a voluntary bankruptcy filing under Chapter 11 of the United States Bankruptcy Code by the Company and certain of its U.S. and Canadian subsidiaries. The agreement in principle provides that, subject to certain limited exceptions, Lear's trade creditors will be paid in full.

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Lear's subsidiaries outside the U.S. and Canada would not be part of the bankruptcy filing. The Company's operations outside the United States and Canada are well-capitalized, well-positioned and have a strong backlog of new business.

Given the unprecedented economic downturn and corresponding decline in global automobile production volumes, as well as continued difficult conditions in credit markets generally, Lear's Board of Directors concluded that in order to protect the long-term business interests of the Company, this protective action was the fastest and most effective way to delever its capital structure. During the reorganization process, Lear is committed to continuing to deliver to its customers the superior quality, service and innovation they expect.

The Company's restructuring plan has the support of a majority of the members of a steering committee of the Company's secured lenders and a steering committee of bondholders acting on behalf of an ad hoc group of bondholders The Company is seeking support for its restructuring plan from additional lenders and bondholders.