Lotus' Solid 5 Year Plan Heralds 3 New Models

[MG Man]

Solid 5 Year Plan Heralds 3 New Models

Group Lotus is set for a bright future with a greatly expanded and
extended car model programme and new opportunities for the engineering
business on a re-aligned basis.

Following a major review of the entire business and with the full
support of the Lotus Group International Limited (LGIL) holding company
board, Lotus intends to launch two additional new models over the next three years.

This is in addition to the new Esprit, which will top the range as the company's future flagship sports car.

The two additional models will be a new mid-range Lotus set for
launch in December 2008 and a Lotus/Proton high-performance model, due in May 2008. The flagship Esprit replacement, whose introduction has been extended to incorporate more Lotus "DNA" and other enhancements to meet the changing needs of the global marketplace, will be unveiled in December 2009.

The review also highlighted opportunities for growth in the
engineering consultancy business, including expansion in new markets, joint ventures and strategic alliances.

Mike Kimberley, Chief Executive Officer, Group Lotus said: "We are
very pleased to have secured LGIL Board approval for a high-level five-year strategic business plan - the first such approved plan that this company has had in the last six years. We have some great opportunities ahead of us and some already under way. It's a very bright future but we have to work hard to bring all the opportunities to fruition."

The current Lotus model range includes the award-winning and
class-leading Elise and Exige with the recently-introduced Europa S. The
three new models, all to be sold through the Lotus dealer network, will
address new market segments and allow Lotus to extend its appeal to a wider customer base. Development work on two of the three new models is already ongoing and will increase significantly in future months.

Responding to a general economic downturn in certain key markets,
Lotus has recently reduced production of its iconic Elise and Exige models.
It also expects to 'right-size' its workforce to match capacity with global
demand and to minimise overheads.

Mike Kimberley concluded "Like many other carmakers we need to
tighten our belts in the short term. It is essential we respond fast to
market conditions while we drive forward this exciting long-term plan. Our
shareholder Proton has been and is very supportive of Group Lotus plc, with strong backing for our realignment plans."
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I know it's so, for I told me so

[Plex]

nice..