• US$1 bln investment at greenfield site will double capacity to 600K
• New site to include R&D facility with mass production starting Apr 2008

<Seoul, April 18, 2006> Hyundai Motor Co. today broke ground for a second automotive manufacturing plant in Beijing, continuing a stellar growth streak that has set one sales record after another in the Chinese market. A total of US$ 1billion will be invested in a greenfield site less than 2km away form the existing plant of Beijing Hyundai Motor Co., a 50:50 partnership with Beijing Automotive Holdings. When mass production begins in April 2008, the new plant will double BHMC's production capacity to 600,000 units.

Anticipating a surge in China´s economic growth precipitated by the 2008 Beijing Olympics and 2010 Shanghai Expo, the new plant will include a research and development center and will position Hyundai to challenge China´s automotive leaders.

Hyundai Motor Co. Chairman and CEO Chung Mong-Koo was joined in the groundbreaking ceremony by high ranking Chinese government officials including Beijing Vice Mayor Lu Hao, Li Ping the head of the Shunyi District which is home to BHMC and Cheng Lian Yuan, director of the Beijing Municipal Bureau of Industrial Development.

"In a very short space of time, Beijing Hyundai has achieved great success thanks to the help of the Chinese government, our vendors, the media but most of all, thanks to the support of Hyundai´s Chinese customers who love Hyundai. From this day forward, we are resolved to put even greater effort into developing the Chinese market because of China´s great potential. We will move ahead aggressively not only with manufacturing but also with developing our R&D capability in China, re-energizing our sales and service operations all of which will make BHMC a self-sustaining operation. Our aim is to deliver the best quality, the best designs and the widest selection of models to our Chinese customers," said Chairman Chung.

Beijing Secretary Liu Woo Chi observed, "Over the past three years Beijing Hyundai has proven itself not only to be the most exemplary Korean-Chinese joint venture company but the showcase joint venture company in China. With this ground breaking ceremony, it is my hope that Beijing Hyundai grows to become the leader of the Chinese auto industry."

This year, Beijing Hyundai passed the 500,000 cumulative sales mark, just 40 months after launching the Sonata, its first model in the Chinese market.

Beijing Hyundai started producing Sonata in Dec. 2002 and in 2003, its first full year of sales reached 52,129 units making Beijing Hyundai China´s thirteenth largest automaker. Sales soared to 144,088 units 2004 and by 2005, sales had catapulted to 233,668 units making Beijing Hyundai China´s fourth best selling brand. This year, Beijing Hyundai is targetting sales of 300,000 and passing VW to claim the number three sales spot.

Beijing Hyundai´s second plant is located in the Shunyi District near the Beijing International Airport and is just two km from the first plant. The $1 bln second plant will also include an R&D complex which will be completed simultaneously with the plant.

Beijing Hyundai now builds four models: Sonata, Elantra, Tucson and Accent. Elantra has won numerous accolades in China and is Beijing Hyundai´s best seller with 176,589 units sold in 2005. The EF Sonata is one of China´s best known, most prestigious brands being the preferred car China´s burgeoning middle class.

The Sonata and Elantra were designated by Beijing municipal authorities as the official standard taxi models. The capital´s taxi fleet is formidable with 67,000 licensed taxis operating in Beijing. Last month, 15,000 Hyundai taxis were sold accounting for 80 percent of new taxi registrations during the month.

With the second plant Beijing Hyundai will emerge as the leader of the Chinese industry. By 2008, Hyundai and its affiliate Kia Motors Corp. (Dongfeng Yueda, Kia´s joint venture in China, will account for 430,000 capacity by 2008) will have a combined capacity of 1.03 million units in China to achieve a 20 percent share of the Chinese market.

Established in 1967, Hyundai Motor Co. has grown into the Hyundai Kia Automotive Group which includes Hyundai Mobis and over two dozen auto-related subsidiaries and affiliates. Employing over 68,000 people worldwide, Hyundai Motor posted US$27.383 billion in sales in 2005 (on a non-consolidated basis). Hyundai motor vehicles are sold in 193 countries through some 5000 dealerships and showrooms. Hyundai Motor Co. is a sponsor of the 2006 FIFA Germany World Cup. Further information about Hyundai Motor Co. and its products is available at http://www.hyundai-motor.com