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Ford Reaches Agreement to Buy Kwik-Fit

12 April 1999

Ford Reaches Agreement to Buy Kwik-Fit

    DEARBORN, Mich., April 12 -- Ford Motor Company has
announced it has reached agreement to acquire Kwik-Fit, Europe's largest
independent vehicle fast-fit (maintenance and light repair) chain.
    Kwik-Fit has more than 1,900 service points in the United Kingdom, Ireland
and continental Europe trading primarily under the Kwik-Fit and Speedy brands,
as well as mobile service, mobile tire replacement and car insurance
operations.
    "The acquisition of Kwik-Fit is an important step towards Ford's goal to
become the world's leading consumer company that provides automotive products
and services through world-class brands," said Jacques Nasser, Ford president
and chief executive officer.
    "Kwik-Fit is an outstanding company that has earned a leading position in
the fast-fit market and created a successful customer formula -- innovative
high value services coupled with convenient locations and knowledge of the
customer," said Nasser.
    "Kwik-Fit will provide Ford with an expanded capability to service
customers owning competitive brands and, in many cases, older vehicles.  It
will allow us to interact with millions of customers we are not reaching
today.  In this way, the acquisition complements our primary effort with
dealers to grow their share of the service business with newer vehicle
owners."
    The total consideration is approximately 1 billion pounds (equivalent to
$1.6 billion) in cash.
    "Since the first Kwik-Fit center was opened in Edinburgh in 1971, the
Kwik-Fit group has become the largest provider of specialist automotive
services in Europe," said Sir Tom Farmer, chairman and chief executive of
Kwik-Fit.  "It has been our aim to provide the motorist with services from the
showroom to the scrap yard.  Not only does this development take us a big step
closer to achieving this, but it also provides us with a tremendous
opportunity to complement Ford's global strategy and expand the Kwik-Fit brand
as widely as possible."
    This transaction is subject to regulatory approval and the necessary level
of Kwik-Fit shareholder support.  The directors of Kwik-Fit are unanimously
recommending that all Kwik-Fit shareholders accept Ford's offer.

    Ford Motor Company is the world's second largest automaker.  Its
automotive brands include Aston Martin, Ford, Jaguar, Lincoln, Mazda, Mercury
and Volvo.  Its automotive-related services include Ford Credit, Quality Care,
Hertz and Visteon Automotive Systems.