Ford Motor Company (NYSE: F) announced today that it will distribute 0.130933 shares of Visteon Corporation (NYSE: VC) for every share of Ford common or Class B stock held on June 12. Stated another way, shareholders will receive one share of Visteon for approximately every 7.637478 shares of Ford common or Class B stock held on June 12. This distribution, which will be made on June 28, represents Ford's 100 percent stake in Visteon.

The distribution ratio was calculated by dividing the number of Visteon shares owned by Ford Motor Company (130 million) by the number of Ford common and Class B shares outstanding on the record date of June 12 (992,872,120).

As announced on May 31, Ford Motor Company will make a cash distribution in lieu of Visteon stock to Ford employees who invest in Ford stock through certain U.S. employee savings plans. The cash distribution will be of equal value to the stock distribution on a per share basis.

Based on the Visteon when-issued closing stock price of $17.5625 on June 12, the total value distributed to Ford shareholders would be approximately $2.8 billion, or $2.30 per Ford share. Without the additional cash distribution, the total value distributed would have been approximately $2.3 billion, or $1.89 per Ford share. The actual value will be determined by the value of Visteon stock on the distribution date.

Visteon Corporation is one of the world's largest suppliers of automotive systems and is recognized as a technology leader in electronics integration. With 1999 sales of $19.4 billion, Visteon will rank among the top 100 companies on the Fortune 500 once it becomes an independent company.

The Visteon stock distribution is separate from Ford Motor Company's previously announced Value Enhancement Plan (VEP) that also will generate a shareholder distribution this year. Under the VEP, Ford shareholders will exchange their current Ford common or Class B shares for new common or Class B shares, plus cash or additional new Ford shares. Timing for the VEP distribution will be announced later this summer.