Daewoo 9 November 2000

press release:

In a statement issued yesterday Daewoo Motor Co. Ltd. has announced that the Korean operations of the company will be filing for Court Receivership.

It is important to be aware of what this implies and how this could affect the Australian operation and your investment in the Daewoo Brand.

Receivership is a form of protection offered to an indebted entity in order to allow it to continue trading while maintaining sufficient operating funds.

It is important to note that Daewoo Automotive Australia is a 50/50 joint venture between Daewoo Motor Co. Ltd and a partner, Starsurya International and that Daewoo Motor’s production facilities in Korea are operating. Stock of cars and spare parts is regularly being delivered to Australia and suppliers of Daewoo Automotive Australia are being paid as normal. No staff cuts or further re-structure are planned as a result of the current contingency.

Daewoo Automotive Australia intends to honour its commitment to warranty and Free Care as integral part of its commercial operation in the years to come.

While negotiations have been protracted both General Motors as well as Fiat have confirmed their interest in a stake of Daewoo Motor's operations. Receivership has become necessary in the prolonged transition period between the re-structuring of the Korean conglomerate and the sale of its most valuable assets being undertaken to repay creditor banks.

We are informed from Seoul that most of the further cost cutting and re-structuring is expected to affect the least profitable while preparing the Company for sale.

Mr J. D. Lee, who successfully led KIA in its turnaround from insolvency in the recent past, has been appointed by the creditor Banks as the new Chairman of Daewoo Motors.

We will keep you updated regularly of any development either directly or through our [web] site.

We appreciate your continued support in a challenging transition and look forward to sharing with you in a leaner and better Daewoo.

M. De Vriendt, Executive Director and
H. S. Yae, Chief Financial Officer

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