DEARBORN, Mich., March 17, 2000 - Ford Motor Company announced today that it has reached a memorandum of understanding to buy Land Rover from the BMW Group. The transaction is subject to BMW and Ford reaching a definitive agreement, due diligence and regulatory approvals. If successful, the acquisition is expected to be completed in the second quarter.

The acquisition involves the entire Land Rover line of vehicles - Range Rover, Discovery, Freelander and Defender - including assembly and engineering facilities. It does not include Rover's passenger car business or any assumption of debt by Ford.

"Land Rover is a terrific global brand with a wonderful heritage," said Ford Motor Company President and Chief Executive Officer Jac Nasser. "It is our intention to leverage Land Rover to its fullest potential."

"The board is enthusiastic about this opportunity," said Ford Motor Company Chairman William Clay Ford Jr. "Land Rover is known throughout the world and fits perfectly into Ford's growing family of world-class brands."