CALIFORNIA CITY, Calif., February 11, 2003 – Mong-Koo Chung, chairman and CEO of Hyundai Motor Company and Kia Motors Corporation, joined a select group of VIPs in a ceremonial groundbreaking on Hyundai’s first U.S. proving ground in California City, Calif. The 4,300-acre, $50-million facility will be the test site for next-generation Hyundai and Kia vehicles. The Hyundai • Kia Motors Proving Ground furthers Hyundai’s growing investment in the United States and reaffirms the company’s commitment to designing Hyundai and Kia products for North American consumers.

The Hyundai and Kia design teams moved from Hyundai’s Fountain Valley headquarters to their new 90,000 square foot design and technical center in January 2003. The new facility is fitted with an advanced visualization system from Blue Water Technologies housed in a presentation room with three projection screens and two turntables. Designers and math modelers operate from the latest Alias / Silicon Graphic work stations while clay modelers sculpt new design proposals on six surface plates and operate a 5-axis milling machine with state-of-the-art shop facilities.

Hyundai and Kia selected the City of Irvine for the home of its design and technical center because of both companies’ rich history in Orange County, Calif. Hyundai Motor America is headquartered in neighboring Fountain Valley, Calif. and Kia Motors America is headquartered in Irvine.

“Kia Motors America was, in essence, born and raised in Irvine, and we look forward to continuing that tradition,” said Peter M. Butterfield, president and CEO, Kia Motors America. “The major benefit of this design center is having a California-based design staff that understands how to take automotive trends and make them appealing to U.S. consumers on a bigger scale.”

“This new design facility reaffirms Hyundai’s commitment toward investing in the U.S. economy as well as its commitment toward the creation of stylish car designs for our U.S. consumers,” said Finbarr O’Neill, president and CEO, Hyundai Motor America. “Hyundai and Kia continue to exceed expectations when it comes to car design and our newest design center will echo both companies’ innovative spirits.”

Also joining the Hyundai and Kia design teams will be Hyundai America Technical Center, Inc. (HATCI) which is responsible for all engineering activities in the U.S. for both Hyundai and Kia.

“Housing HATCI with the Hyundai and Kia design teams guarantees modern design and expertise in automotive engineering,” said S.K. Kim, president, Hyundai Motor Company. “This unique type of collaboration will secure Hyundai’s and Kia’s continued quest for excellence in car design.”

Hyundai Motor America, based in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Company of Korea. Hyundai cars and sports utility vehicles are distributed in the United States by Hyundai Motor America and are sold and serviced through more than 600 dealerships nationwide. For more information, visit www.hyundainews.com.

Hyundai America Technical Center, Inc., is a wholly owned subsidiary of Hyundai Motor Company, Korea. It is responsible for the technical development of cars and trucks in North America, including governmental certification issues. Its headquarters are located in Ann Arbor, Mich., with two branch offices in the Los Angeles area.

Kia Motors America is the U.S. sales, marketing and service arm of Kia Motors Corp. in Seoul, Korea. The full line of Kia models including the Sorento midsize SUV, Sedona minivan, Optima midsize sedan, Spectra compact sedan and five-door hatchback as well as the Rio subcompact sedan and Rio Cinco five-door wagon are available at more than 600 retailers nationwide.

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