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Ford Obtains Requisite Consents to Amend Defeasance Provision

27 August 1999

Ford Motor Company Obtains Requisite Consents to Amend Defeasance Provision of Its 7-1/4% Notes Due Oct. 1, 2008

    DEARBORN, Mich., Aug. 26 -- Ford Motor Company is
announcing that it has received consents from holders of more than the
required two-thirds of the total $500 million principal amount of its 7-1/4%
Notes due October 1, 2008 to expand the defeasance provision applicable to the
Notes.
    The consent solicitation began on August 5, 1999 and expired on August 25,
1999.
    Promptly following execution of a supplemental indenture to effect the
amendment, payments will be made to consenting holders in the amount of $15.00
for each $1,000 of principal amount of the Notes for which a consent has been
timely received.
    Merrill Lynch & Co. acted as Solicitation Agent for the consent
solicitation.