To achieve its target ownership level of 20% in FHI (on a fully diluted basis), GM also announced that it plans to purchase 131.9 million newly issued shares from Fuji Heavy for approximately Yen 112.5 billion ($1.05 billion) on April 11, 2000, when the acquisition closes. All regulatory approvals for GM's acquisition of shares from both FHI and Nissan have been received.

The acquisition of Fuji Heavy shares held by Nissan further reinforces the strategic tie-up between GM and FHI, which was announced in December of last year. The tie-up covers all aspects of the partners' business in all regions of the world including the design and manufacture of small and midsize sport utility vehicles, all-wheel-drive systems, continuously variable transmissions for small-sized vehicles and integrated vehicle control systems. The companies also plan to work together on advanced technologies.

(March 25, 2000)