▪Solid Foundation for Long-Term Growth: Successful Conclusion and Overwhelming Creditor Approval of Amended Rehabilitation Plan

▪Court Approval Granted: Company Scheduled to Apply for Termination of Rehabilitation Procedure following Repayment of Rehabilitation Claims in Early March

January 28, 15:00 KST, Seoul - Creditors and shareholders of Ssangyong Motor Company passed an Amended Rehabilitation Plan by an overwhelming majority today, taking a major step in the finalization of the M&A process with India’s Mahindra & Mahindra Ltd., and establishing a significant bedrock for revival. Mahindra & Mahindra Ltd. is part of the US

$ 7.1 billion Mahindra Group which is one of India’s leading business houses.

At the assembly today, the Amended Rehabilitation Plan was passed by 100% of rehabilitation mortgaged creditors, 94.2% of rehabilitation creditors, and 100% of stockholders - an approval rate far surpassing the court required majority.

Ssangyong Motor joint receiver, Yoo-Il Lee, remarked, “I would like to express my deepest gratitude toward the creditors for passing the Amended Rehabilitation Plan, thereby ushering in a new phase of revival and recovery. I would also like to extend thanks to the employees of Ssangyong who have continued to loyally strive for the company’s betterment during the challenges of the past two years. Mahindra’s international footprint, strengths in R&D and product development will enable SYMC to emerge as a global SUV player.”

Dr. Pawan Goenka, President, Auto and Farm Sectors, Mahindra & Mahindra Ltd. commented, ““We are delighted that the Amended Rehabilitation Plan has been approved and now look forward to developing mid-term and long-term strategies for synergy and growth.  I would like to thank the shareholders and creditors of Ssangyong Motor Company for their cooperation and employees for their patience with the process.”

“We look forward to regaining SsangYong’s past stature as a leading SUV maker through the cooperation between Mahindra and SsangYong,” remarked Kyu Han Kim, Union leader

The widespread consensus amongst creditors was based on the view that an early termination of the rehabilitation procedure would be most beneficial for Ssangyong Motor Company, and would eliminate uncertainty for all involved parties. Ssangyong can now seek to terminate its 2-year long rehabilitation process, which began on February 6, 2009. In so doing, the company will establish not only a consistent and stable business foundation, but a platform upon which it can seek future growth.

New measures, in accordance with the court approved Amended Rehabilitation Plan, including the issuance of new stocks and corporate bonds (5 working days after approval counting the Asian lunar New Year), will occur through February 9th.

Progress of Corporate Rehabilitation and M&A Procedure

- 2009.2.6         :  Decision to Begin Rehabilitation Proces
- 2009.12.17         : Initial Rehabilitation Plan Approved
- 2010.5.10        :  Company Sale Announced
- 2010.5.28        :  Submission of Letter of Intent
- 2010.6.04        :  Selection of Candidates for Preliminary Due Diligence
- 2010.6.7~7.16    :  Preliminary Due Diligence by Selected Candidates
- 2010.8.10        :  Final Bid Document Submission
- 2010.8.12        :  Selection of Preferred Bidder
- 2010.8.23          :  Signed MOU with Mahindra & Mahindra Ltd.
- 2010.8.30-9.29      :  Completion of Due Diligence by Preferred Bidder
- 2010.11.23       :  Signed Definitive Agreement
- 2011.1.28        :  Approval of Amended Rehabilitation Plan