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CHRYSLER AGREES TO SELL LAMBORGHINI

 HIGHLAND PARK, Mich., Nov. 17 /PRNewswire/ -- Chrysler Corporation (NYSE: C) today announced it has agreed to sell Automobili Lamborghini S.p.A. and its subsidiaries to MegaTech Ltd., a Bermuda holding company specializing in high technology industries.
 In a purchase agreement signed by Chrysler Chairman Robert J. Eaton, Chrysler Vice President of Design and International Operations Thomas C. Gale, and SETDCO Owner and Chairman Setiawan Djody, Chrysler and MegaTech Ltd. agreed to terms for the sale of Automobili Lamborghini, Lamborghini Engineering and Lamborghini USA. SETDCO is the primary owner of MegaTech Ltd.
 "We believe the agreement we signed will give Lamborghini and its employees the best opportunity for future prosperity with a highly motivated and very focused new owner," Eaton said.
 After signing the agreement, Djody said, "We are serious about the future of Lamborghini and we intend to build upon the rich Lamborghini tradition of exceptional supercars for enthusiasts worldwide.
 "MegaTech Ltd. is poised to make its mark on the world automobile business and Lamborghini will be a central part of our plan," Djody said. "We are already active in racing, and we have an array of businesses that will complement Lamborghini, so we believe our future looks very bright."
 The agreement calls for a period in which Chrysler personnel assist the new owners in running the company to ensure a smooth transition. It also allows for Chrysler and Lamborghini to continue their present technology agreements.
 "The sale of Lamborghini may close a chapter in the history of the company, but it doesn't signify the end of the Chrysler-Lamborghini relationship," said Gale. "Chrysler and Lamborghini will continue to work together on projects that best utilize each company's strengths."
 The purchase price of the company was not disclosed.
 Lamborghini currently produces the Diablo, a 5.7 liter V-12, 492 horsepower supercar and the Diablo VT, an all-wheel-drive version. Chrysler Corporation bought Lamborghini and its subsidiaries from the Mimran family in 1987.
 Automobili Lamborghini, the manufacturer of supercars, is based in Sant 'Agata, Italy. Lamborghini Engineering, the advanced technology arm, undertaking such projects as the Formula One engine program, is based in Modena, Italy. Lamborghini USA, based in Jacksonville, Florida (USA) is the sales arm for Lamborghini in the United States.
 SETDCO is a large conglomerate that has interests in shipping, mineral exploration, manufacturing, textiles, agri-business and entertainment.
 -0- 11/17/93
 /CONTACT: Tony Cervone of Chrysler, 313-252-8800/
 (C)


CO: Chrysler Corporation; Automobili Lamborghini S.p.A.; MegaTech Ltd. ST: Michigan IN: AUT SU: TNM

SM -- DE019 -- 5698 11/17/93 16:55 EST
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Publication:PR Newswire
Date:Nov 17, 1993
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