Valuation of Stock Options Granted by Ford

Ford Motor Company today reconfirmed the values of stock options granted in 2002 to the executive officers that were named in Ford's 2003 proxy statement. The values were derived using the Black-Scholes option pricing methodology.

The values for the stock options reported in the proxy statement included an adjustment for the risk of forfeiture of the stock options in the event of termination of employment or other factors. This forfeiture adjustment, calculated by Ford's outside compensation consultants, averaged 17.14 percent and is reflected in the values for the stock options reported in the proxy statement.