KIA´S EUROPEAN PLANT STARTS TO TAKE SHAPE

• Construction of all-new Kia factory in Slovakia running ahead of schedule
• First all-new Kia models to come off the production line in Zilina during late 2006
• More than 10,000 job applications for work at Kia´s first European facility
• Annual output scheduled to ultimately reach 300,000 units

Kia Motors Europe Headquarters, Eschborn, Germany - 10 October 2005

Construction of Kia Motors´ all-new car manufacturing facility, near the town of Zilina in Slovakia, is running ahead of schedule and the company´s first European plant is starting to take shape. At present 1,000 workers mostly from Slovakia, are working on site.

The factory represents an investment of €1.0 billion and is due to begin production of new ´designed for Europe´ Kia models next year, with the first cars rolling off the final assembly line in December 2006. The 180,000 square metre building will occupy a 168 hectare site and will have the potential for producing 300,000 cars annually.

As one of Europe´s fastest growing economies, Slovakia will benefit from and develop with Kia, one of the worlds fastest growing automobile manufacturers. The country introduced significant economic reforms in order to join the EU, and already unemployment is down, annual inflation is down to 2% and the Zilina area, 200 kilometres north-east of Bratislava, is set to benefit hugely.

During the initial recruitment process Kia received more than 10,000 job applications - proving that Kia is an attractive company to work for. Kia will directly employ 2,400 people during the start-up period and then up to 3,100 people to operate three shifts when manufacturing reaches full capacity. Jobs at Kia´s assembly plant form just part of the 10,000 jobs being created either directly or indirectly in the region as more than 12 component manufacturers - including Hyundai Mobis, Hyundai Hysco, Johnson Controls and PHA (Arvin Mentor) - will build satellite plants at industrial parks in Slovakia to supply the demands of the Kia facility.

Mr In-Kyu Bae, President and CEO of Kia Motors Slovakia and the man responsible for ´master-minding´ the creation of Kia´s new facility, commented: "Throughout our planning for the new
facility we have strived to achieve ´transparency´ in everything we do - for the benefit of our
company, our employees, our products and our customers - and the design of the buildings reflects this commitment.

"Our strategy team of 60 people developed a three-part concept. Firstly, creating ´optimum
connection´ between managers, employees, component suppliers and service providers. Secondly, encouraging ´high-quality productivity´ through close attention to detail in every aspect of the
manufacturing process. Thirdly, ensuring ´profitability´ by maximizing best use of revenues with cost-effective manufacturing," concluded Mr Bae.

Following Kia´s chosen theme of transparency, a glass-faced central control tower will give managers an overview of the major production processes including the press shop, body shop, paint shop and final assembly areas. An open garden will be provided for staff relaxation.

The final assembly shop, which will have a transparent roof to admit natural daylight, will create a better working environment and enable Kia to match the best European levels of build quality. Product quality will be a central focus at the new plant, and a large trial production batch will ensure that maximum efficiency and quality in all processes is achieved before full-scale production for Kia customers begins.

Annual vehicle output at Kia´s Zilina plant is planned to reach 100,000 units during 2007 - its first full year of activity - and 200,000 by the end of 2008. By 2010, Kia anticipates supplying up to 40% of European demand for its products from Slovakia.

"The creation of a Kia manufacturing facility in Europe is a very significant step in the growth and development of our company," commented Jean-Charles Lievens, Senior Vice President of Kia Motors Europe. "As well as supplying top-quality Kia cars for our expanding European dealer network, our new factory will open doors to new market sectors and will help to establish Kia even more securely in the European marketplace. We are confident that 500,000 annual sales and a 3% market share for Kia across the wider European market will be achievable by 2008."

- Ends -


Editors´ Notes

Kia Motors Europe
Kia Motors Europe is the European sales, marketing, and service arm of Kia Motors Corporation. With its headquarters in Eschborn, Germany, it covers 28 markets in Europe. The European sales target is 300,000 units per year by 2005, thanks to new products and new diesel engines.

About Kia Motors Corporation
Kia Motors Corporation (www.kiamotors.com) - one of the fastest growing automaker in the world - was founded in 1944 and is Korea´s oldest manufacturer of motor vehicles. As part of the Hyundai-Kia Automotive Group, Kia aims to become one of the world´s premier automotive brands.

Kia´s 16 manufacturing and assembly operations in 13 countries produce more than 1.1 million vehicles a year that are sold and serviced through a network of distributors and dealers covering 155 countries. Kia today has 32,000 employees and annual revenues of US$14 billion.

Kia is the major sponsor of the Australian Tennis Open and an official worldwide sponsor of the Davis Cup. Kia Motors Corporation´s brand slogan - ´The Power to Surprise´ - represents the company´s global commitment to surpassing customer expectations through continuous automotive innovation.

Press Contact

Dr Iris Kirschbaum
Tel 0049 6196 5092 132 Email i.kirschbaum@kia-europe.com

Kia Motors Europe GmbH
Hauptstrasse 185, 65760 Eschborn, Germany.
Tel +49 (6196) 509 2132 / Fax +49 (6196) 509 2100