Southwall, Visteon, and the U.S. Department of Energy's National Renewable Energy Laboratory Announce Favorable Test Results of XIR Solar Reflective Film in Automotive Glazing.

Business Editors

PALO ALTO, Calif.--(BUSINESS WIRE)--May 25, 2001

Southwall Technologies Inc. (Nasdaq:SWTX), Visteon Corporation (NYSE:VC), and the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) today announced favorable results from a July 2000 desert test program. Results of the program demonstrate that a test vehicle equipped with Southwall's XIR(R) transparent, infrared reflecting film, had significantly reduced interior temperatures and would exhibit approximately a 3 percent improvement in fuel economy, compared to the control vehicle equipped with standard tinted glass, if the air conditioning compressor were reduced appropriately.

"These test results clearly demonstrate that our heat reflecting XIR(R) film can provide significant benefits to automotive designers and the general consumer," said Southwall's President and CEO Thomas G. Hood. "The fuel efficiency numbers are particularly encouraging in light of today's increased emphasis on energy efficiency."

"We are very encouraged by these test results," said Cliff Dawson, Director of Visteon's Glass Operation. "Visteon's Glass Operation has been developing solar control products for many years, so we are pleased by the results of these tests as they will provide us with the data required to move forward with the overall Solar Control program."

The collaborative test program included wind tunnel evaluations, as well as road tests. Wind tunnel testing was performed at Visteon facilities in Michigan to determine a baseline comparison between two identical North American luxury sedans. Outdoor testing was conducted in Phoenix, Arizona. Testing involved side-by-side outdoor comparative results, which helped assess the impact of XIR(R) film on both vehicle fuel economy and passenger comfort.

The test was conducted with a North American luxury sedan that was equipped with standard solar tint glass and used as a baseline. The same vehicle was later re-glazed with laminated XIR(R) glass and subjected to the same testing. The Glass was developed and produced by Southwall Technologies and Visteon's Glass Operation. The test results were based upon data obtained from multiple thermocouple readings, as well as subjective passenger feedback recorded while the vehicles were undergoing the simulated city cycle that included stop-and-go, steady speed and stationary driving conditions.

The test data were first analyzed by Visteon's Climate Control Group to determine the impact of XIR(R) glass on passenger comfort levels. The results demonstrated a reduction of approximately 20-25 percent in "time to comfort." The occupants of the test vehicle took an average time of 16 minutes in achieving a comfortable interior temperature, compared to 21 minutes for the occupants of the control vehicle.

In order to assess the effect of XIR(R) glass on vehicle fuel economy, Visteon's Climate Control Group used a North American luxury sedan to predict the potential reduction of the air-conditioning compressor load. The air-conditioner compressor size can be reduced because the vehicle is cooler due to the XIR(R) glass.

NREL simulated the fuel use of the luxury sedan with the downsized air conditioner driven over the simulated city cycle using its ADVISOR program, which is designed for quick analysis of the performance and fuel economy of vehicles. With the air-conditioning matched to the baseline luxury sedan, the luxury sedan that was equipped with XIR(R) glass and a downsized air-conditioner had a 3 percent improvement in fuel economy over the simulated drive cycle.

The XIR(R) film is encapsulated between two pieces of vinyl and, subsequently, inserted between two pieces of glass to make an infrared reflecting, UV absorbing barrier. Southwall's XIR(R) film is already used in more than 1,000,000 new cars a year to keep occupants safer, more comfortable and to protect the car interior from extreme degradation due to ultraviolet light. In Europe, there are more than 16 models currently using the XIR(R) technology, including models from Audi, BMW, Mercedes, Peugeot-Citroen, Renault and Volvo. Southwall's new XIR(R) film plant in Dresden, Germany, was initiated in January 2001 in order to supply the European market.

About Southwall Technologies Inc.

Southwall Technologies (www.southwall.com) designs and produces technologically advanced thin film coatings that selectively absorb, reflect or transmit electromagnetic radiation. Southwall products are used in a number of architectural, automotive and electronic products to enhance optical and thermal performance characteristics, improve user comfort and reduce energy costs. Southwall exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Mitsubishi Electric, Peugeot-Citroen, Renault and Volvo.

About National Renewable Energy Laboratory

NREL (www.nrel.gov) is a national laboratory operated by Midwest Research Institute, Battelle, and Bechtel for the U.S. Department of Energy. NREL develops renewable energy and energy efficiency technologies and practices, advances related science and engineering, and transfers knowledge and innovations to address the nation's energy and environmental goals.

About Visteon Corporation

Visteon Corporation is a leading full-service supplier that delivers consumer-driven technology solutions to automotive manufacturers worldwide and through multiple channels within the global automotive aftermarket. Visteon has 82,000 employees and a global delivery system of more than 130 technical, manufacturing, sales, and service facilities located in 23 countries.

This press release may contain foward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995), including, without limitations, statements regarding Southwall's expectations, beliefs, intentions or strategies regarding the future. All foward-looking statements in this press release are based on information available to Southwall on the date hereof, and Southwall assumes no obligation to update any such forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presented. These risks include the possibility that the tests described herein will have no effect on demand for Southwall's products, shipments to customers will be materially less than anticipated, that Southwall's production machines may experience production difficulties in the future, that the schedule for the commencement of production on new machines will be materially longer than described above, that additional machines in Dresden may not be built or commissioned on schedule or at all, or that the customers discussed above will not continue to purchase product from Southwall, as well as risks associated with its failure to meet covenants under credit facilities and strains on the Company's liquidity. Further risks are detailed in Southwall's filing with the Securities and Exchange Commission, including those set forth in Southwall's most recent Form 10-K and Form 10-Q.