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Ford Purchases 65% of Series B Preferred Stock

27 February 1998

Ford Purchases 65% of Series B Preferred Stock

    DEARBORN, Mich., Feb. 27 -- Ford Motor Company
today announced that it will purchase approximately 65% of the outstanding
depositary shares representing its Series B Cumulative Preferred Stock.
    Ford commenced a tender offer for the depositary shares on January 22 and
the offer expired at 5 p.m. (EST) on February 26.  Approximately 13.2 million
depositary shares were tendered in the offer, of which approximately 100,000
were tendered pursuant to notices of guaranteed delivery.
    Ford is purchasing all validly tendered depositary shares at a purchase
price of $31.40 per depositary share.  The regular quarterly cash dividend of
51.5625 cents for the first quarter that is payable on March 2 to holders of
record on January 30 will be paid on the depositary shares that are purchased.
Approximately 7.1 million depositary shares (or 35% of the presently
outstanding amount) were not tendered and will remain outstanding.
    Merrill Lynch & Co. was the dealer manager for the tender offer.

SOURCE  Ford Motor Company