NEW CERATO TO BOOST KIA SALES IN EUROPE

• Bold new Kia entry to Europe´s largest market segment
• Choice of stylish 4-door and 5-door body styles
• Introduction of two common-rail diesel engines

Kia Motors Europe Headquarters, 13 January 2004

The all-new Kia Cerato four-door sedan, which makes its European debut at the International Motor Show in Brussels today (Tuesday), is a hugely significant model for the ambitious Korean company.

Kia is currently Europe´s fastest-growing automotive brand and the 4.5-metre Cerato is a highly competitive entry into the hugely popular and all-important C-segment of the European market.

For the first time in this segment, Kia will be offering customers a choice of gasoline and diesel engines in the Cerato. The 1.5-litre and 2.0-litre diesel engines feature common-rail technology for the optimum balance between performance, economy and emissions.

Kia is confident that the Cerato range - both the 4-door sedans and the five-door hatchback sister cars (scheduled to make their world debut at the Geneva Motor Show in March), will attract more than 45,000
European customers annually within two years of its launch.

Styled to attract modern, image conscious consumers, the Cerato sedan is a car that perfectly matches Kia´s ´young, sporty and friendly´ brand as-pirations. The Cerato is a high volume product designed to achieve stronger market penetration globally and particularly to increase the ap-peal of Kia´s C-segment offering in Europe.

The Cerato continues the recent Kia tradition of introducing new models which are thoroughly modern, attractive, and technically sophisticated, while still delivering outstanding value-for-money. Sorento, Opirus,
Picanto and now Cerato, confirm that Kia has great appeal to European customers.

Taller, wider and shorter than the Shuma it replaces, the new Cerato has a much longer (2610 mm) wheelbase, and offers significantly more cabin space than its predecessor. Customers can choose from two equipment levels (LX and EX), two gasoline engines with manual or automatic transmission, two diesel engines both with manual gearboxes, and a long list of optional equipment.

The four cylinder gasoline engines are fitted with 16-valves. The 1.6-litre produces 105 ps, while the 2.0 unit features CVVT (continuously variable valve timing) which boosts power at low and medium revs), and generates 143 ps.

The all-new 1.5-litre CRDi diesel engine, which produces a maximum of 102 ps, will be available from the Summer of 2004. The 2.0 CRDi diesel engine is available from launch. It is based on the power unit used in the Kia Carens, and develops 112 ps and a massive 245.2 Nm of torque at just 2,000 rpm.

Cerato manual transmissions come with five speeds, while the ´adaptive´ automatics are four-speed units featuring electronics that match the transmission´s characteristics to the customers´ driving style.

All-new, the Cerato bodyshell is torsionaly stiff (to ensure European standards of ride, handling, braking and steering), and skilfully
constructed (to achieve excellent occupant protection and an anticipated 4-Star rating in EuroNCAP tests). It is also light enough to achieve highly competitive performance and fuel economy.

The chassis has fully independent suspension, precise rack and pinion steering, and disc brakes all round with ABS, EBD and BAS (brake as-sist) for maximum stopping power. In Europe, every Cerato will come fitted with Bridgestone tires. The five-seater cabin is equipped with dual front airbags, front side airbags, and full length side curtain airbags - depending on model.

An eye-catching addition to the Kia range, the Cerato sedan represents a winning blend of style and function, with an electrifying combination of comprehensive features and unbeatable value. The LX model equipment includes: tinted windows, ABS anti-lock brakes, 60/40 split folding rear seat backrest, centre console storage box, electric front windows, four two-way audio speakers and three-point seatbelts for all five occupants.

The EX builds on the LX specification by adding numerous items, in-cluding: twin front fog lamps, heated door mirrors, remote central lock-ing and theft alarm, driver´s seat height adjustment and lumbar support, rear seat folding central armrest and storage box, rear cup holders, twin front-mounted audio tweeters, overhead console with map lights and sunglass holder and courtesy ´puddle lights´ in the front doors. Extra-cost optional equipment includes: dual-mode traction control, heat-reflective solar glass, powered glass sunroof, leather upholstery and a choice of 15 inch or 16 inch alloy wheels.

Cerato gives Kia a bright new contender in the battle for C-Segment sales, an attractive newcomer with all the right credentials to be a
success. While the five-door hatchback model is expected to be the
predominant choice among Cerato customers in Europe, the four-door sedan will do well in several European countries. Its styling is sleeker than traditional three-box designs and the folding rear seats give it genu-ine load-carrying versatility.

Currently the Kia model range covers just 35% of European market
sectors. With a host of new model introductions over the next two years,

Kia´s coverage will rise to 85 or 90% of these sectors, and the company is certain that its goal of 300,000 annual sales in Europe by 2005 is an achievable goal. Together with owner Hyundai, Kia is on course to be-come at ´Top 5´ global car maker by 2010.

Designed at Kia facilities in Korea, the USA and Europe, the new Cerato is the result of more than 40 months intensive work and a total
investment cost of approximately €220 million. Conceived to give Kia a tough new challenger in the C-Segment, the Cerato is destined to play a major role in the brand´s continued rapid grow in Europe and all around the globe.

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Editors´ Notes:

Cerato Prices
Prices and final equipment specifications for the Cerato LX and EX sedan mod-els will be revealed country by country, nearer to their ´on sale´ dates.

About 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 23 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
Founded in 1944, Kia Motors Corporation (www.kia.co.kr) is Korea´s oldest manufacturer of automobiles. A part of the Hyundai Automobile Group, the company currently sells more than one million vehicles per year worldwide and exports around 600,000 vehicles per year through a network of
distributors that covers 175 countries. Kia Motors is the major sponsor of the Australian Tennis Open and the international sponsor of the Davis Cup for the Euro/Africa Zone.

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