Press Release

GM Comments on Lease Advertising Consent Agreement with FTC

11/22/96

GM Statement Regarding a Consent Agreement with the Federal Trade
Commission on the Subject of Lease Advertising

DETROIT, Nov. 21 -- Following is a GM
statement regarding a consent agreement with the Federal Trade
Commission on the subject of lease advertising. The statement may be
attributed to Kyle Johnson, Manager of Legal & Safety Issues for GM's
Corporate Communications Staff:

General Motors, Honda, Isuzu and Mitsubishi today jointly announced a
consent agreement with the Federal Trade Commission (FTC) and the
Attorneys General of 23 states on the subject of lease
advertising. The four companies have agreed to lead the way for
automobile manufacturers, dealers and finance companies in complying
with recently enacted changes to the Consumer Leasing Act and
Regulation M.

The settlement is part of an industry-wide pursuit of a resolution of
the difficult issue of how to most meaningfully provide leasing
information to consumers as they comparison shop for automobiles. The
industry, regulators and enforcement agencies have all been struggling
for several years with lease information issues.

The companies did not agree to pay any fines or penalties. Each
company has agreed to pay $12,500 to each of twenty of the states to
cover the costs they incurred in this process.

The recent legislative and regulatory changes by Congress and the
Federal Reserve Board reflect the input over several years of the
companies and their trade associations, and these four companies are
optimistic that the proposed solutions will work. The companies are
eager to take a leadership role in the industry and to reinforce the
views they expressed in the Regulation M revision process by entering
this agreement.

An even greater benefit to consumers may be a voluntary effort
initiated by General Motors and the other companies to explore
additional consumer education. Now that the regulatory and legislative
framework has been established, a group that includes auto
manufacturers, finance companies, consumer representatives, regulators
and advertisers plans to focus on an educational program to provide
consumers the appropriate information, when they need to have it and
in a way that is most helpful to them.