Press Release

Jaguar Announces XK8 Introduction

10/07/96

Jaguar Introduces First New Sports Car In 21 Years

MAHWAH, N.J., Oct. 3 -- Jaguar dealers throughout the
country are today hosting events ranging from black-tie galas to cyber
newscasts to welcome Jaguar's first new sports car in 21 years, the
XK8. Coupe and convertible models go on sale in the United States and
Canada today.

In California, Jaguar dealers are holding Hollywood-style events,
giving entertainment industry celebrities a peek at the new XK8. Using
the latest in computer audio and active imaging technology, a cyber
newscast will be transmitted, live over the Internet, from the Los
Angeles Petersen Automotive Museum, allowing web users around the
world to watch as the XK8 introduction unfolds. Internet users can
access the coverage through The Auto Channels website at
"http://www.theautochannel.com".

In Coral Gables, Florida, The Jaguar Collection has gone so far as to
recreate the dramatic atmosphere of Manhattan's famous Rainbow Room,
complete with white-gloved waiters. This typifies the special events
scheduled by Jaguar dealers nationwide.

Early reaction to the XK8's styling from the press and public strongly
confirmed the design team's dramatic departure from the car's
predecessor, the XJS. The design of the new Jaguar was acclaimed by
the press at unveilings at the Geneva and New York auto shows earlier
this year, and a special edition of the XK8 offered by Neiman Marcus
was sold out within 72 hours of the first catalogs arriving in
mailboxes.

The new car is powered by the first V8 engine ever designed by
Jaguar. Called the AJ-V8, the advanced 4.0-liter, 32-valve aluminum
engine produces 290 horsepower and features an exceptionally wide
torque band for quick response.

Reinforcing Jaguar's reputation for advanced technology are standard
features such as automatic stability control for traction on slippery
roads and an advanced multiplex electrical system to allow
sophisticated electronic controls. In addition, the convertible
features one-button, auto-latching top mechanism that raises and
lowers the top while the XK8 travels at speeds of up to 1O miles per
hour.

Throughout the XK8 interior, traditional Jaguar elegance is reflected
in the expansive use of fine wood veneers and premium Connolly
leather. "Outstanding value has been a Jaguar tradition, and the XK8
strengthened that position," said Michael H. Dale, president of Jaguar
Cars North America. "With its remarkable performance, a full
complement of amenities and a host of advanced features that enhance
the driving experience, the XK8's price compares very favorably to the
prestige-class competition."

The XK8 coupe debuts at a suggested retail price of $64,900 ($89,900
in Canada), and the convertible at $69,900 ($97,900 Canadian).

Jaguar projects worldwide sales of the XK8 will total 12,000 in its
first full year on the market, including 6,700 for the United States
and 315 for Canada in calendar 1997. The convertible is expected to
account for 80 percent of the sales in both countries.