KIA TIANLIMA BECOMES ´BEST SELLER´ COMPACT CAR IN CHINA

• Sales jump 67.6% as TianLiMa claims 10% share of category
• Kia Motors´ ´build-locally´ policy proves hugely successful

Kia Motors Europe Headquarters, Eschborn, Germany - 20 July 2004

Kia´s TianLiMa sedan has become the best-selling compact car in China with sales up 67.6% this year. Sales figures for the first six months confirm that Kia Motors´ policy of designing a car specifically for the local market and building it in China, is attracting more and more customers to the marque in the world´s fastest growing car market.

Official data from the Chinese Association of Automobile Manufacturers shows that TianLiMa sales reached 36,508 units in the six months to June 2004. The immense leap in popularity for this Kia model, made it the top-selling car in the 1300cc to 1600cc category - outselling 23 rival models.

"TianLiMa´s impressive success in this dynamic market of the future is an affirmation of our global strategy of thinking globally and producing locally," commented Yong-Hwan Kim, Executive Vice President and COO Kia Motors. "We have high expectations for our business in China, and with the addition of the new 100,000 vehicle capacity facility in Jiangsu Province, we will have the ability to meet the anticipated rising consumer demand for Kia products."

Produced in a joint venture by the Dongfeng Yueda Kia Motors company, the latest success of the TianLiMa gives it a 10.1% share of the compact market. Boosted by sales of its Kia branded cars, Dongfeng Yueda also entered the Top 10 for the first time among China´s 40 automobile makers.

Kia Motors has identified China and Europe as the markets with the highest potential for sales growth in the next decade. In both regions Kia is building new factories to produced models designed especially to meet the needs of local consumers. Kia´s all-new assembly plant in Slovakia represents an investment of €1 billion and will produce cars for European customers from the end of 2006.
- ends -

Editors´ Notes:

Kia in Europe
- Across Europe, Kia achieved its best-ever monthly sales in June, delivering 17,854 vehicles to customers, a rise of 49% over June 2003, to claim a record market share of 1.3%.
- Kia´s all-new Picanto small car attracted 6,000 customers in June to become the brand´s best-selling model.
- Half-year sales for Kia pan-Europe reached 77,815, a 25% rise over 2003.

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 19 markets in Europe. The European sales target is 300,000 units per year by 2005, thanks to new European products and new diesel engines.

About Kia Motors Corporation
Kia Motors Corporation (www.kiamotors.com), which celebrates its 60th anniversary in 2004, is among the world´s fastest growing automobile companies. As part of the Hyundai-Kia Automotive Group, Kia aims to be a ´Top 5´ global automaker by 2010. Kia´s 15 manufacturing and assembly operations in 12 countries make more than one million vehicles each year. These vehicles are sold and serviced through a network of distributors and dealers covering 190 countries.
Founded in 1944, Kia Motors Corporation is Korea´s oldest manufacturer of automobiles. Kia today has 30,000 employees and annual revenues of US$ 12 billion. It is the major sponsor of the Australian Tennis Open and the international sponsor of the Davis Cup.

Press Contact:

Kia Motors Europe GmbH
Henri-Pierre Galletti
Head of Communications
Hauptstrasse 185, 65760 Eschborn, Germany
Tel.: +49 (6196) 509 2132 / Fax.: +49 (6196) 509 2100
E-mail: hpgalletti@kia-europe.com

Media Website www.kiapress.com