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Kia Rio Ready To Redefine The Term 'Subcompact'
All-New Sedan Was Designed To Inject Never-Before-Seen Levels of Style, Value and Convenience Into A Competitive Segment

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January 11, 2005 -- DETROIT -- When the Kia Rio first went on-sale in August 2000, it arrived under the premise that low-cost cars did not have to be dull. Reliable and affordable, the subcompact sedan spent much of its first four years as the lowest priced new vehicle in the U.S. The Rio was the perfect embodiment of Kia's philosophy -- building reasonably-priced, high-quality vehicles -- that helped the company become one of the fastest growing automotive brands in America.

Now, Kia is ready to raise the bar in the subcompact segment with the completely redesigned Rio which slots in just below the company's recently launched Spectra compact sedan as the next 'new generation' product of Kia's revitalized product range. Updated with a wider, more aggressive stance and a longer wheelbase, the new Rio's dimensions lead to an astonishing 92.2 cubic feet of passenger space inside the cabin. Rio's passenger volume is clearly the largest in the subcompact sedan segment and larger than many bigger, more expansive sedans such as Honda Civic and Toyota Corolla.

The subcompact sedan segment is typically one that most people associate with plain, "boxy" small cars. To stand out from the crowd, Kia believes it must offer consumers a vehicle that includes a generous list of desirable features and a dramatic exterior design, blending international styling cues with distinctive character both inside and out.

"The all-new Rio is the latest example of Kia's ability to develop stylish new products with more comfort and convenience features than the competition and class-leading standard safety equipment at an incredible value to the consumer," said Kia Motors America president and CEO Peter M. Butterfield. "The Rio has traditionally been a value-leader in the U.S. market and the new Rio's enhanced performance and exceptional passenger space is sure to help separate it from the increasingly competitive subcompact field."

Going head-to-head with the likes of the Toyota Echo, Chevrolet Aveo, Scion xA and Hyundai Accent, the all-new Rio is expected to attract younger and slightly more affluent buyers than the current Rio, evenly split among men and women. With an expected average age of 45 and a median household income of approximately $40,000, Kia anticipates half of Rio buyers to be married, with a majority of customers not yet having children.

"Rio has been a landmark product for Kia and has attracted large numbers of customers to our showrooms," said Randy Maurstad, director, product planning, Kia Motors America. "We believe the 2006 Rio will build upon the previous generation vehicle's stellar reputation as an outstanding value, and will also show consumers that advanced features such as full-length side curtain airbags are not a luxury found only on higher-priced vehicles."

As the latest in a string of new product introductions from Kia, a strategic goal of the all-new Rio is to continue to build upon the momentum created by vehicles such as the Sedona minivan, Sorento mid-size SUV, Amanti large premium sedan and Spectra compact sedan that have revolutionized the Kia brand. The Rio is Kia's latest effort to show the automotive world that the company remains on track to achieve its objective of creating a larger presence in the U.S. market with a broader range of products that offer high levels of quality, value and safety for American consumers.

The 2006 Kia Rio four-door sedan will arrive in showrooms in early summer with pricing to be announced closer to launch.

Kia Motors America is the sales, marketing and distribution arm of Kia Motors Corp. in Seoul, South Korea. For more information, including photography, visit www.kiamedia.com.



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