GM Suffers First Setback in Lawsuit Over Studebaker XUV

    CHICAGO, Feb. 18 -- Avanti Motor Corp. had their first
victory in the case recently filed against them by General Motors.  A U.S.
District Court judge delayed the hearing in which GM was seeking a temporary
injunction against Avanti Motor Corp. until February 26, 2003 because of
jurisdictional concerns.
    Avanti Motor Corporation will keep their Studebaker Xtreme Utility Vehicle
(XUV) in the Chicago Auto Show.  General Motors had initially requested that
the vehicle be removed.  Avanti Motor Corporation Chairman and CEO Michael E.
Kelly stated that he feels Studebaker would not have gotten nearly this much
recognition if not for GM bringing it into the spotlight.  Kelly said "We are
extremely excited for our new XUV, the public support for the XUV and Avanti
has been tremendous."
    Kelly reaffirmed that Avanti Motor Corporation will continue taking the
necessary steps to produce the 2004 Studebaker XUV.  "Car buyers will
certainly not be confused," said Kelly.  "Put both vehicles side by side, and
the distinct differences are apparent."
    For more information and photos of the vehicles' differences, please visit
the company's website at http://www.avantimotors.com and search the press releases.