Kia Signs Investment Agreement for Slovak Plant

KIA AUTOMOTIVE AUSTRALIA

KIA SIGNS INVESTMENT AGREEMENT FOR SLOVAK PLANT

Kia Motors Corporation (KMC) today (18 March 2004) held a signing ceremony at the central government building in Bratislava, Slovakia, to officially authorize the construction of Kia’s €1 billion automotive assembly and manufacturing plant in the Slovak Republic.

Signatories to the Investment Agreement were Hyundai-Kia Automotive Group Chairman and CEO Mong-Koo Chung and Slovakian Prime Minister Mikuláš Dzurinda.

The cooperation agreement formalized the commitment of Kia Motors to build its first European plant in the SlovakRepublic as well as the Slovakian government’s commitment to finalize all related internal and EU authorizations on schedule and to provide in a timely way the necessary structural framework for investment. Both parties also pledged to fully cooperate and honor all mutual obligations which were previously agreed during the negotiations that resulted in Kia’s decision to locate its plant in Slovakia.

Kia’s new European assembly and manufacturing operation will be built on 150 hectares in Slovakia’s Zilina region and will create approximately 2,400 jobs at the facility. The plant – which will be owned and operated by Kia – will begin production in late 2006 and produce 200,000 Kia vehicles per year with the possibility under review to expand capacity to 300,000 vehicles based on market conditions.

The decision by KMC to build the new facility was based on continued strong sales and market share growth in Europe. Kia is currently Europe’s fastest-growing automotive brand, and one of the fastest-growing in the world. Last year in Europe, Kia sold a record 150,000 vehicles and this year plans to export more than 255,000 vehicles.

“The Hyundai-Kia Automotive Group plans to become a global top five automobile company by the year 2010 and Kia’s Slovakian plant is an important milestone towards our achievement of that objective,” said Mong-Koo Chung, Hyundai-Kia Chairman. “I am also confident that Kia’s plant will cement a strong foundation in Zilina and play a vital role in the economic development of Slovakia, where we look forward to being an active and responsible corporate citizen.”

“I want to thank Prime Minister Dzurinda and the people of Slovakia for their commitment to Kia,” Chairman Chung emphasized. “Together we are now building what I am sure will be an enduring and mutually successful relationship.”

Today’s signing ceremony was attended by leading Hyundai-Kia executives and senior Slovak government officials.

An official groundbreaking event for the new Kia plant is scheduled for April 7.

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