Hyundai, Kia Partner on Logistics

Form joint California venture to handle outsourced vehicle logistics operation

Costa Mesa, CA Ñ March 10, 2003 Ñ Hankook Logitech Co. (HKL) and Hyundai Automotive Group, based in Seoul, Korea, today announced the formation of HK Logistics America (HKLA), a new operation to be responsible for total vehicle logistics management for Hyundai Motor America (HMA) and Kia Motors America (KMA).

HMA and KMA combined have 11 port operations, nine water ports and two inland processing centers, in eight U.S. states including California, Georgia, Maryland, New Jersey, Oregon, Florida, Washington and Texas. The two companies plan to import more than 700,000 vehicles in 2003 and service over 1,200 dealerships nationwide.

Costa Mesa, Calif.-based HKLA's first project will be to consolidate the supply chain management for all logistics activities in North America.

"Combining the volumes of HMA and KMA will allow for improved operational efficiencies, providing even greater service to the companies' dealers," said J.E. Lee, president and CEO of HKLA.

Currently, HKLA employs 27 people, including Lee, Vice President and Chief Operating Officer Marvin Baisden, administrative staff and full-time logistics managers.

In the future HKLA said it plans to look for opportunities to become a total logistics service provider with other automotive customers.