London 8 October 2002: Maggie E. Mills and Richard Fleming of Ernst & Young LLP have been appointed as Joint Administrators of Daewoo Cars Limited. The Directors requested the appointment of the administrators after careful consideration of the company's financial position in order to protect the interests of all parties.

With Ernst & Young's recognised specialism in the reconstruction of manufacturers and retailers, the administrators advise that they will be drawing on that expertise to implement a strategy designed to optimise the value, which could be realised from the Daewoo Cars Limited's assets.

The administrators confirm that they are currently in discussion with General Motors Daewoo, but so far there has been no formal agreement signed.

Unfortunately, there will be a number of redundancies within Daewoo Cars Limited, and the administration may also result in some disruption for Daewoo car customers in the short term. However, efforts will be made to minimize this disruption.

Following the Daewoo Cars Limited appointment of an administrator, GM Daewoo UK wishes to reassure all Daewoo customers that the planned establishment of a new GM Daewoo UK sales organisation is not affected. This new UK import and distribution company remains on track to be operational later this month, dependent upon final negotiations being completed between GM Daewoo and other parties in Korea. GM Daewoo UK is confident that, once these global negotiations have been completed, it can take over responsibility for its UK Daewoo customers.

Andy Carroll, head of the GM Daewoo UK transition team and Managing Director (Designate) of GM Daewoo UK said, 'Our top priority is to ensure that Daewoo owners are inconvenienced as little as possible and I am convinced that the work that we are doing now will make the Daewoo ownership experience with our new company better than ever before'.

Around five months ago, an agreement was signed between General Motors and the creditors of the Daewoo Motor Company. Upon final closure of that deal later this month General Motors will become responsible for the business management of a new company - GM Daewoo Auto and Technology (GM DAT). The headquarters will be in Korea with Nick Reilly (former Managing Director of Vauxhall Motors) serving as President and Chief Executive Officer.

GM will hold a 42.1% share of the new company; Suzuki and another GM alliance partner will hold a combined stake of 24.9% with creditors of the former company holding the remaining 33%.

Whilst the agreement included the take over of eight of the overseas sales subsidiaries, the UK import and distribution company, Daewoo Cars Limited, was not included in the deal. It is this company which has appointed an administrator.

GM Daewoo UK will be the new (and sole) UK import and distribution company for Daewoo cars in the UK market.

GM Daewoo UK will be launching a new generation product in the small car sector (positioned between its established Matiz and Tacuma ranges) at the British International Motor Show at the NEC in October 2002. The new Daewoo Kalos is a modern, stylish product styled by the famed Italian designer Giorgetto Giugiaro with chassis dynamics developed in the UK. It will compete in the value segment of the small car market with a spacious interior, high level of standard specification and safety features and high quality of manufacture.