Seoul

FOR RELEASE: May 29, 2001

Seoul - General Motors Corporation, Daewoo Motors Company and the Korea Development Bank acting on behalf of Daewoo creditors have reached an agreement to begin formal negotiations regarding the acquisition of passenger vehicle assets and related businesses of Daewoo Motor Company.

Formal negotiations follow more than six months of evaluation and business plan development. Both sides are committed to proceeding with negotiations as rapidly as possible. The parties will work to reach an agreement on a memorandum of understanding outlining the terms and conditions and the timetable and steps required for the completion of a transaction. The degree of GM alliance partner participation in the possible acquisition will be determined during the course of the negotiations.

Both sides are hopeful for a successful conclusion and have agreed to keep the content of their discussions confidential during this negotiation process.