Hyundai Motor America and Kia Motors America Outsource Vehicle Logistics Operation

New Company Will Consolidate Operations, Make Transportation More Efficient

COSTA MESA, Calif., March 10 -- Hankook Logitech Co., Ltd. (HKL) and Hyundai Automotive Group, based in Seoul, Korea, today announced the formation of HK Logistics America (HKLA). The newly formed operation, headquartered in Costa Mesa, Calif., is responsible for total vehicle logistics management for Hyundai Motor America (HMA) and Kia Motors America (KMA).

HMA and KMA combined have 11 port operations, nine water ports and two inland processing centers, in eight U.S. states including California, Georgia, Maryland, New Jersey, Oregon, Florida, Washington and Texas. The two companies will import more than 700,000 vehicles in 2003 and service over 1,200 dealerships nationwide. HKLA's first project will be to consolidate the supply chain management for all logistics activities in North America.

"Combining the volumes of HMA and KMA will allow for improved operational efficiencies, providing even greater service to the companies' dealers," said J.E. Lee, president and CEO of HKLA.

Currently, HKLA employs 27 people, including President and CEO J.E. Lee, Vice President and Chief Operating Officer Marvin Baisden, administrative staff and full-time logistics managers.

About HK Logistics America

HK Logistics, based in Costa Mesa, Calif., is the North American operating unit of Hankook Logitech Co., Ltd. (HKL) of Seoul, Korea. HKL, a total logistics service provider, manages worldwide logistics services for a number of industries. HKLA is responsible for providing total vehicle logistics management for Hyundai Motor America (HMA) and Kia Motors America (KMA). In the future HKLA will look for opportunities to become a total logistics service provider with other automotive customers.

About Hyundai Motor America

Hyundai Motor America, based in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Company of Korea. Hyundai cars and sport utility vehicles are distributed in the U.S. by Hyundai Motor America and are sold and serviced through more than 600 dealerships nationwide. For more information, visit www.hyundainews.com.

About Kia Motors America

Kia Motors America is the U.S. sales, marketing and service arm of Kia Motors Corp. in Seoul, Korea. The full line of Kia models is available at 635 retailers nationwide, including the Sorento midsize SUV, Sedona minivan, Optima midsize sedan, Spectra compact sedan and five-door hatchback as well as the Rio subcompact sedan and Rio Cinco five-door wagon. For more information, visit www.kiamedia.com.