Avanti Responds to GM Lawsuit Over Studebaker XUV

    CHICAGO, Feb. 17 -- Today, Avanti Motor Corp. announced that
plans to roll out the 2004 Studebaker Xtreme Utility Vehicle (XUV) will move
forward, despite a recent lawsuit filed by General Motors Corp.  General
Motors' suit contends that Avanti's Studebaker XUV "knocks off" the shape of
GM's Hummer H2 and will confuse the public.
    The story of David and Goliath came to mind when Avanti Chairman and Chief
Executive Officer Michael E. Kelly was questioned about the recent lawsuit
filed by GM.  "There will not be any confusion on the part of the car-buying
public," said Kelly.  "Put both vehicles side by side, and there's no question
that the Studebaker XUV is distinctly different."
    Kelly stated that Avanti Motor Corp. never considered using GM, Hummer or
H2 designs for their Studebaker XUV.  It was also noted that no GM parts were
used to build the new Studebaker XUV.  "There are no parts of an H2 Hummer
that fit on a Studebaker XUV," Kelly said.  "Furthermore, the Studebaker is
based on original concepts and designs developed by Avanti Motor Corp.  The
Studebaker XUV has a completely different body style, from the front end to
the rear gate, and it has sliding rear side doors and a sliding rear roof, the
same as a 1963 Studebaker Wagonaire."  The two vehicles in question share
absolutely no common parts.
    The Avanti Studebaker is more than two feet longer than the H2, and
features a rounded hood, distinct front grille, and unique body molding.  It
also includes several features not found in the GM offering, including power-
sliding rear doors and a power-retractable rear roof.
    Avanti believes that this frivolous lawsuit was presented to the small
manufacturer by General Motors in order for GM to create a monopoly on the
market of boxy, utility-type vehicles, thus preventing Studebaker, Ford, or
even Chrysler from producing this type of vehicle in the future.
    The Hummer H2 is no stranger to legal action.  Ironically, last year
Daimler-Chrysler sued GM over the design of the vehicle, claiming the grill
was a knockoff of the Jeep's classic seven-slot front.

    About the Avanti Studebaker Xtreme Utility Vehicle
    The 2004 Avanti Studebaker XUV measures 80 inches wide, 79.6 inches tall
and 215.5 inches long, with a 134-inch wheelbase and a curb weight of 5,900
lbs.  It will be offered with either a 325-horsepower, 6.0-liter turbo-diesel
V8 or a 310-hp, 6.8-liter V10.  The V10 may be equipped with an optional
supercharger, which raises the engine rating to 425 hp.  A five-speed
automatic transmission will be offered with both engines.  The Studebaker's
use of the Ford F-250 platform will enable the vehicle to be serviced by an
established dealer network.

    About Avanti Motor Corp.
    Avanti Motor Corp., located in Villa Rica, Ga., is the largest independent
carmaker in the United States, and is now in its 40th year.  It can be found
on the Web at http://www.avantimotors.com .

    For more information, contact Mike Rosen or Don Collignon at
Meyer/Fredericks & Associates Ltd., (312) 782-9722.