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AUDI SET TO ACQUIRE LAMBORGHINI

"LETTER OF INTENT" SIGNED

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"The shareholders of Automobili Lamborghini SpA and AUDI AG have signed a

Letter of Intent today to enter into negotiations for the acquisition of the Italian

sports car company by AUDI AG. Details of the negotiations will be worked out in

the next few weeks.

AUDI AG is a leading edge provider of high value automobiles. The company

produces both in Germany and abroad including Hungary, Chino, Malaysia and

South Africa. In 1997 delivered around 546,000 cars to customers and the sales

turnover was more than DM 22 billion. Overall Audi employs a workforce of over

38,000.

Lamborghini is a world famous car producer which has developed innovative and

prestigious products such as the Miura, Espada, Countach and the current Diablo. The

company is celebrating its 35th anniversary this year. It was bought from Chrysler

in 1994 by two investors:: the Malaysian Mycom and the Indonesian V'Power. After

a substantial turnaround, Lamborghini is now developing two completely new

supercars: the project 147, nicknamed "Super Diablo" that will be an extreme car on

top of the existing Diablo product line, and the project 140, nicknamed "Baby

Diablo" that will be a super car in the USD, 100,000 price range, both addressed to

two new segments of the market.

The two new models will create greater revenues for Automobili Lamborghini SpA

and, herald a new era for the house of the bull. Under the leadership of Vittorio Di

Capua, plans are underway to turn Lamborghini into a fully integrated sport and

racing car company, a target for the new millenium.

Lamborghini is entering the new millenium with a complete product line for

super car enthusiasts and the racing fans."