Press Release

Audi Announces Debut of First Car with Six Air Bags

10/21/96

Audi Launches Revolutionary, All Aluminum Space Frame Luxury Sedan --
First Car to Offer Six Air Bags

SEATTLE, Oct. 17 -- At a press conference in Seattle
today, Audi of America introduced its ground-breaking Audi A8 premium
luxury sedan and its entire 1997 model line, including the new A4 1.8
Turbo, now the lowest priced luxury sedan sold in the United States
with a base price below $23,000.

The Audi A8 -- on sale in the U.S. on October 28 -- employs a
first-of-its-kind aluminum space frame body technology that delivers
extraordinary weight savings with best-in-class safety, performance
and luxury features.

Available in two V8 versions, a 3.7 front-wheel drive and 4.2 quattro
all-wheel drive, the A8 is the first vehicle in the world to come
equipped with six airbags, including side airbags for both front and
rear outboard occupants.

"For the first time, Audi will have a truly high-end premium luxury
car. A car some have called the best in the world," said Gerd Klauss,
vice president in charge, Audi of America. "We believe by offering a
luxury car that provides this kind of excellence without excess, the
Audi A8 sets a new standard in this segment."

The A8 aluminum space frame construction is 40 percent lighter than
competitive steel units. This translates into a curb weight of 3,682
for the A8 3.7, which compares very favorably to key competitors such
as the Mercedes Benz S-Class (S320) at 4,480 pounds.

The Audi space frame construction also provides exceptional passive
safety through the uniquely strong properties of its aluminum alloy
castings, extrusions and body panels. It also acts as a safety cell,
whereby the long members in the front and rear are designed to crumple
in accordion-like fashion, absorbing tremendous energy and sparing the
remaining central structure under collision loads.

In addition, the A8 is the only car in the world with six airbags: two
for driver and front passenger for supplemental protection in the
event of a frontal impact; two for the driver and front passenger for
side-impact protection; and two more side-impact airbags for the rear
outboard seat occupants.

The Audi A8 3.7 is priced at $56,900 and the quattro-equipped A8 4.2
is priced at $64,500. Features include, among others, 14-way power
seats up front, fully automatic dual-zone climate control with
sunlight sensors, eight-speaker stereo, one-touch up and down power
windows with pinch protection, electronic cruise control, power glass
sunroof, anti-theft system with motion detection and organically
tanned Nappa leather upholstery and more.

Audi also unveiled its new A4 1.8 T that will go on sale in
November. The A4 1.8 T is a four-door German sports sedan equipped
with the automaker's new 1.8 liter, five-valves per cylinder
turbocharged four-cylinder. This technologically advanced engine
produces 150 horsepower and is designed to provide an optimal blend of
performance and fuel economy.

It will be introduced at a price of $22,990. Audi's full-time
all-wheel-drive system, quattro, is a $1,600 option.

Standard features on the A4 1.8 T includes ABS, fully automatic
climate control, stereo cassette, an anti-theft alarm system,
one-touch power windows, tilt/telescoping steering wheel, central
locking and more.

"The Audi A4 1.8 T is the new entry into the Audi lineup and builds on
the strong reputation and appeal of the existing A4, opening up a
market segment we have never entered before," said Klauss. "It will
have a price/value relationship that will stun the luxury market."

Introduced last year, the original A4 2.8 model has helped Audi become
the fastest growing passenger car franchise in the United States. For
the year, Audi has sold 19,731 new cars representing a 59.3 percent
increase over the same period in 1995.

Audi also unveiled 1997 versions of its family-size A6 sedan and
wagon, and A4 2.8, all available with quattro as an option.

In addition, Audi will reposition the Cabriolet and offer a value
leader base model that will be priced at $34,600 (vs. $36,800 in 1996
MY) with leather seating, a power top, wood trim and remote locking
made optional in a Premium Equipment Package.