Hyundai Motor Company Breaks Ground in Alabama on Its First U.S. Auto Plant; Facility Will Produce Next Generation Sonata, Santa Fe

MONTGOMERY, Ala., April 16 -- Hyundai Motor Company (HMC), along with dozens of state and local government officials, today broke ground on the company's first U.S. automotive manufacturing plant, to be built on 1,620 acres of land in Montgomery, Alabama.

The $1 billion facility, set to begin production in 2005, will produce the next generation of the popular Sonata sedan and Santa Fe sport utility vehicle.

At peak production, the facility will employ approximately 2,000 people and produce 300,000 vehicles per year. The site will include a manufacturing and assembly facility, as well as a stamping plant and an engine plant.

``Today marks the beginning of a new era of growth for Hyundai Motor Company in the United States and underscores our commitment to investing in the American market,'' said Mong Koo Chung, Chairman of Hyundai Automotive Group. ``It also reflects our commitment to being a stable, growing member of the Montgomery-area community. We are very happy to now call Alabama home.''

Chairman Chung also announced the formation of a new subsidiary, Hyundai Motor Manufacturing Alabama, LLC, which will be responsible for plant operations in the Montgomery area.

Chairman Mong Koo Chung was joined at the ceremonial groundbreaking by Alabama Governor Don Siegelman, Montgomery Mayor Bobby Bright and hundreds of community leaders and federal, state and local government officials.

The ceremony also featured the unveiling of the artist's rendering of the new, two million square-foot facility.

``On behalf of Hyundai Motor Company, I wish to once again thank Governor Siegelman and the state and local officials who have worked with us as partners to make this day possible,'' added Chairman Chung.

Governor Siegelman offered the state's appreciation for Hyundai selecting Alabama for its first U.S. manufacturing facility.

``Hyundai wants to build the greatest automobile, and we want to build the greatest state. And together, we will achieve both,'' said Governor Siegelman.

The decision to build the facility in Alabama comes on the heels of continued strong sales growth in the U.S. market. In 2001 alone, the Hyundai Automotive Group (which consists of the Hyundai Motor America and Kia Motors in the United States) saw sales of 569,956 units in the United States, an increase of 29 percent over 2000 and the largest increase in the auto industry.

Hyundai Motor Manufacturing Alabama Facility Fact Sheet

About The Alabama Facility

-- The two million square-foot facility will be built on 1,620 acres of land in the city of Montgomery, Alabama

-- Construction of the facility is expected to begin in November 2002

-- The company will investment approximately $1 billion in the new facility

-- Once it is fully operational, Hyundai expects the facility to employ approximately 2,000 people

-- The facility is scheduled to begin production in 2005

-- The combined manufacturing and assembly facility will produce the next generation designs of both the popular Sonata sedan and the Santa Fe sport utility vehicle (SUV) for the North American market

-- In addition, the site will include a stamping plant and an engine plant

-- At maximum capacity, the facility is expected to produce 300,000 units per year

-- The $1 billion cost will be 70% financed through internal cash reserves and 30% through outside financing