Dutch State to Withdraw from Nedcar

12/14/1998 10:39 AM EST

DUTCH STATE TO WITHDRAW FROM NEDCAR


Today the Dutch State has exercised its option to sell its shares in NedCar to
Mitsubishi Motors Corporation and Volvo Car Corporation.


Not later than 15 February 1999 the shareholders' structure of NedCar will be
changed into a fifty-fifty ratio in favour of the industrial shareholders
Mitsubishi Motors Corporation and Volvo Car Corporation. The Dutch State will
withdraw as third party from the joint venture with effect from this date.


This decision is in conformity with the joint venture agreement which was
concluded between the parties in December 1991. At that time it was decided
that each of the parties would acquire a stake of 33 1/3% in the new company
and that before the end of 1998 the Dutch State would announce a possible
withdrawal as a shareholder.


In accordance with the original agreement the transaction involves a total of
NLG 220 M, of which Mitsubishi Motors and Volvo Car Corporation will each pay
NLG 110 M.


December 14, 1999