Press Release

Ford Announces New Navigation System

10/18/96

Ford to Offer New Navigation System

ORLANDO, Fla., Oct. 16 -- Ford Motor Company's
new on-board navigation system uses modern technological advances to
direct automobile drivers to the destination of their choice. The
system, which was developed for Europe, was shown today for the first
time in the U.S. during the Third Annual World Congress on Intelligent
Transport Systems.

The navigation system is housed in a special radio with an enlarged
display screen. It is powered by a trunk-mounted navigation computer
with an integral CD-ROM for the digital map compact disks.

This on-board navigation system will be available in early 1997 in the
Ford Mondeo, the European version of North America's Ford Contour and
Mercury Mystique. It enables a driver to use a scroll-through menu to
select a destination from a map database of street names and other
points of interest. The system knows the car's location from its
Global Positioning System (GPS) satellite receiver and quickly
calculates the best route to the destination.

Verbal instructions are issued before every turn. Progress is
continually checked by an on-board electronic compass, wheel-speed
signals, GPS data and continuous computer matching to the digital map.

Derrick Kuzak, director of Ford's Electrical and Electronic Systems
Engineering in Advanced Vehicle Technology, said, "As customer
concerns about traffic congestion and personal security increase,
we're pleased to offer the latest navigation technology available to
help drivers get to their destinations in a minimum amount of time."

Initially, Ford will offer the navigation system in Britain and
Germany, followed by Italy, Spain and France since these countries
have the most mature digital guidance maps.

Before introducing the navigation system, Ford carried out extensive
customer research which showed that avoiding congestion and personal
security were high customer priorities. This new system addresses
those needs, while also providing a customer with information on how
to get to his destination.

In developing this navigation system, Ford worked closely with leading
suppliers in the industry during the research stages and teamed up
with Bosch to offer the Mondeo system.

Ford also worked with the German-based TeleAtlas to develop the maps
for the Mondeo system. Aerial photographs were carefully scanned in
and digitized using sophisticated computer technologies. Attributes
such as turn restrictions and traffic capacity then were added.

The company also carried out an extensive testing program in
laboratories and test tracks and subjected the system to extreme
weather conditions such as in Arizona and Finland.

"Ford's navigation system relies on verbal communication from either
the driver or a passenger. Clear verbal communication is much better
than the use of complex visual displays," said Kuzak. "A display is
used to help input the destination and to provide a backup cue if
there is any doubt about the instructions given concerning distance or
direction."

Work on developing the Ford navigation system was a global effort led
by a team of specialists in Europe. Ford also worked with people in
local European markets for specific language or cultural differences,
such as the appropriate phraseology and the selection of male and
female speakers.