Pontiac, Mich. - General Motors and AM General have reached final agreements to jointly pursue product, marketing and distribution opportunities for HUMMER. Under the final agreements GM has acquired the exclusive ownership of the HUMMER brand name worldwide. Completion of these agreements finalizes the transactions contemplated under the terms of the memorandum of understanding between the two companies that was announced in June.

GM and AM General have also agreed to pursue additional product opportunities for HUMMER. More details of this portion of the agreement will be released in the first quarter of 2000.

In order to enable AM General to enter into these agreements, AM General recently requested consent from holders of record as of Nov. 23, 1999, of certain 12 7/8 percent Senior Notes, due in 2002. Their consent authorized specific amendments to the Notes waiving covenants which may have restricted AM General' s ability to enter into the agreements with GM. Bond holders returned formal consents well in excess of the requirements necessary for AMG to proceed with the transaction. Other necessary consents have been received from, among others, AM General's senior lenders.

This transaction will have no impact on AM General' s military business operations. AM General will continue to handle all marketing and distribution of the military High Mobility Multipurpose Wheeled Vehicle (HMMWV).

(Dec. 21, 1999)