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Ford Distributes of Associates Stock and Cash to Shareholders

7 April 1998

Ford Completes $26.8 Billion Distribution of the Associates Stock And Cash to Shareholders

    DEARBORN, Mich., April 7 -- Ford Motor Company
today completed the spin-off of its 80.7 percent stake in Associates First
Capital Corp. by distributing its 279.5 million shares of The
Associates to Ford common and Class B shareholders.  Ford also made a cash
distribution of $3.2 billion in lieu of The Associates stock to U.S. employee
savings plan participants who own Ford stock through the plans.
    The cash distribution was made to U.S. employee savings plan participants
who owned Ford stock through the plans on March 12, the record date.  Of the
$3.2 billion distributed, a little more than $2  billion will be reinvested in
the Ford Stock Fund.  These plan participants received a cash distribution
because The Associates stock is no longer offered as an investment option in
the plans as a result of the spin-off.  The stock and cash distributions are
equal on a per-share basis.
    The total value of the distributions is $26.8 billion, or $22.12 per Ford
share, based on today's average volume-weighted price of $84.3849 per share of
The Associates stock.
    "The spin-off of The Associates will allow us at Ford to focus with even
greater intensity on improving our quality, cost structure and overall
efficiency to deliver great customer and shareholder value," said Ford
Chairman and CEO Alex Trotman.  "The Associates, which traces its history back
80 years and is now part of the S&P 500, is a well-managed company with an
impressive track record of profitability that has been duly recognized by
investors."
    Ford common and Class B shareholders of record on March 12 received
0.262085 shares of The Associates for each Ford share owned.  The distribution
ratio (0.262085) was calculated by dividing the number of The Associates
shares owned by Ford (279,484,849) by the number of Ford common and Class B
shares outstanding on the record date (1,066,390,822).
    Detailed information will be mailed to shareholders to help them compute
the cost basis of their shares of The Associates for tax purposes.
    Associates First Capital is a leading diversified finance company
providing consumer and commercial finance, leasing and related services
through 2,265 offices around the world.  Based in Dallas, it has managed
assets of more than $60 billion.

SOURCE  Ford Motor Company