Sheppard Mullin Files Lawsuit on Behalf of Daewoo Motor America Against General Motors and Affiliates

LOS ANGELES--July 24, 2003--

Lawsuit Includes Request for Temporary Restraining Order Against the Importation and Sale of GM Daewoo Manufactured Vehicles

Sheppard, Mullin, Richter & Hampton LLP announced today that it has filed a lawsuit on behalf of Daewoo Motor America, Inc. ("DMA"), and its creditors, in the United States Bankruptcy Court in Los Angeles. The suit names General Motors Corporation and three affiliates, GM Daewoo Auto & Technology Co. ("GM Daewoo"), Suzuki Motor Corp. and American Suzuki Motor Corp. as defendants. The complaint, filed on July 22, includes claims for fraud, tortious interference with contract, unfair competition, unjust enrichment, aiding and abetting breach of fiduciary duty, fraudulent transfer and violation of the bankruptcy automatic stay. Claimed damages to DMA and its creditors are in the hundreds of millions of dollars.

DMA's lawsuit stems from General Motors' decision to exclude DMA from its worldwide distribution network for Daewoo vehicles, which it acquired from the Korean parent of DMA, Daewoo Motor Co., Ltd., in 2002. The complaint alleges that General Motors and its affiliates caused Daewoo Motor Co. to breach its distribution agreement with DMA, thereby cutting off DMA's supply of vehicles and, in May 20, 200302, forcing it into Chapter 11 bankruptcy. DMA is continuing to operate while attempting to emerge from bankruptcy as the U.S. distributor of parts and U.S. vehicle warranty administrator for previously sold Daewoo badged vehicles. On July 23, the bankruptcy court set a hearing date of October 2 for confirmation of DMA's reorganization plan.

General Motors has announced that its newly-formed Korean affiliate, GM Daewoo, soon plans to export and sell rebadged Daewoo automobiles in the U.S. under the Chevrolet and Suzuki brands. These and other forthcoming Daewoo models were originally to be distributed under the Daewoo brand in the U.S. through DMA and its independent network of 500 dealers. These vehicles continue to be widely marketed as Daewoo products throughout most of the rest of the world.

In the lawsuit, DMA is asking the bankruptcy court to restrain General Motors and its affiliates from importing, advertising, or selling the respective Daewoo vehicles for which DMA maintains U.S. distribution rights pending a trial on DMA's contractual right to distribute those models. The named General Motors affiliates have announced their intention to soon market these vehicles in the U.S. as Suzuki "Verona", Suzuki "Forenza", and Chevrolet "Aveo".

"It is clear that General Motors Corporation is attempting to profit and capitalize upon the success DMA demonstrated in the United States selling Daewoo vehicles," said Joseph F. Coyne, Jr., an attorney representing DMA. "DMA had been recognized as 'America's Fastest Growing Car Company' prior to GM's decision to exclude DMA from the GM Daewoo worldwide network. DMA, however, will not permit others to misappropriate property that belongs to DMA for the benefit of its creditors."

The creditors include approximately 180,000 owners of Daewoo automobiles in the U.S., the U.S. Daewoo dealers, numerous fleet and rental companies and other parties. Many Daewoo dealers have already filed lawsuits against General Motors. Most of those lawsuits are being consolidated for discovery in federal court in Florida.

Sheppard Mullin has more than 380 attorneys among its eight offices in Los Angeles, San Francisco, Orange County, San Diego, Santa Barbara, West Los Angeles, Del Mar Heights, and Washington, D.C. The full-service firm provides counsel in Antitrust and Trade Regulation; Business Litigation; Construction, Environmental, Real Estate and Land Use Litigation; Corporate; Entertainment and Media; Finance and Bankruptcy; Financial Institutions; Government Contracts and Regulated Industries; Healthcare; Intellectual Property; International; Labor and Employment; Real Estate, Land Use, Natural Resources and Environment; Tax, Employee Benefits, Trusts and Estates; and White Collar and Civil Fraud Defense. The Firm celebrated its 75th anniversary in 2002.