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AM General Amends Noteholder Consent Solicitation

7 December 1999

AM General Amends Noteholder Consent Solicitation

    SOUTH BEND, Ind., Dec. 7 -- AM General Corporation has
amended certain terms of a solicitation for noteholder consents to amendments
to an indenture governing AM General Corporation's 12 7/8% publicly held
Senior Notes, due 2002.  The solicitation began on November 23, 1999 and is
being made in connection with matters regarding the non-binding memorandum of
understanding signed with General Motors Corporation related to exploring
future product, marketing and distribution opportunities, as disclosed in AM
General Corporation's Form 10Q covering the quarterly period ended July 31,
1999.  In the transaction contemplated by General Motors Corporation and AM
General Corporation, General Motors Corporation would acquire the exclusive
global ownership of the HUMMER brand name worldwide, as well as assume certain
responsibilities for management of the marketing and distribution of HUMMER
vehicles to retail and commercial customers beginning in the fiscal year 2000.
Consents are being sought from holders of record on November 23, 1999 and the
solicitation will expire at the close of business on December 17, 1999.  To
date, the Tabulation Agent has informed AM General Corporation that consents
with respect to $182,000 principle amount of Notes have been delivered.  AM
General Corporation has received additional verbal consents with respect to a
principle amount of Notes in excess of the 75% required to approve the
proposed amendments to the indenture.  AM General has extended the
solicitation to give all holders of Notes an opportunity to consent.  For
additional information, please contact Paul J. Cafiero at AM General
Corporation, telephone 219-284-2907 or James N. Chapman at The Renco Group
Inc., telephone 212-541-6000.