October 11, 2000

Renault reinforces its operations in Morocco
and will support local Nissan's growth

In agreement with the ONA Group in Morocco, Renault is increasing its equity stake in Renault Morocco from 50 to 80 percent and taking over SIAB, Nissan's exclusive importer in Morocco. In this way, Renault is strengthening its presence in a significant market, where it was sales leader at the end of August 2000. Nissan is expecting significant sales increase. Both companies are implementing synergies from the Renault-Nissan Alliance in a new market.

Renault is increasing its equity stake in Renault Morocco from 50 to 80 percent, by buying a 30 percent shareholding in Renault Morocco from S.N.I. (Société Nationale d'Investissement), which is controlled by the ONA Group. S.N.I. will hold on to a 20 percent shareholding in Renault Morocco.

Moreover, SIAB, Nissan's exclusive importer in Morocco, which was until now wholly-owned by the ONA Group, is taken over by Renault Morocco. This operation is part of Renault and Nissan's joint strategy of profitable growth, which provides for each partner to receive support from the company with the stronger presence in a particular market. It will allow Nissan to aim at a market share of 5% by 2005 with the support of Renault.

In addition, the ONA Group and Renault are looking at the possibility of cooperating in other car-related sectors such as sales financing.

By strengthening its presence in Morocco, Renault is showing its confidence in the Moroccan economy and its determination to develop the Renault brand in the Maghreb.

ONA, the leading Moroccan industrial and financial group, operates in five strategic sectors: mining and construction material, food and beverage, tourism and property development, distribution and financial services. In 1999, the ONA Group took over the S.N.I. as part of its growth strategy.

Renault has been active in Morocco since 1928 and was the leading brand in 2000, with 27.4 percent of the total market at the end of August and an expected sales volume of 12 000 vehicles for 2000. Renault Morocco imports new built-up vehicles as well as CKD kits for local assembly of the Express and Kangoo (6,871 vehicles assembled in Casablanca in 1999). Assembly work is carried out by the S.O.M.A.C.A. (Société Marocaine de Construction Automobile). Renault vehicles are distributed through a network comprising a branch office and 18 dealerships.

Nissan has been operating in Morocco since the 1960s and signed an agreement with the ONA group in 1970. In 1976, Nissan made an exclusive distribution agreement with SIAB, wholly owned by the ONA group. Over the past 25 years, Nissan has been exporting new Nissan vehicles to Morocco through SIAB. In 1999, SIAB sold more than 900 vehicles, representing a 2.1 percent market share.