H2 sales on the decline

[PARAGON]

<Table><SPAN class=standardtext><SPAN class=storyheadline>Gas prices not stopping
Hummer sales</SPAN>

<TABLE cellPadding=5 width=200 align=left>
<TBODY>
<TR>
<TD vAlign=top>
<SPAN class=caption>The
record high gas prices don't seem to be affecting the sales of Gm's H2</SPAN> <SPAN
class=caption></SPAN></TD></TR></TBODY></TABLE>
<SPAN
class=storyDate>Posted: 04/07/2005 06:30 pm</SPAN>

<SPAN
class=byline>Story filed by NewsCenter16 Reporter
Robert Borrelli</SPAN>

Michiana - With the
price of gas skyrocketing and many pinching pennies to fill-up, many are
questioning what impact the situation had on sales of Mishawaka's Hummer.


Tyler Hummer in Niles is a place where'd you expect to see a lot
of hummers, but that's not the case, as the huge, fuel hungry SUV's are still
selling amid near record-high gas prices.

The price of gas isn't
hurting business as Tyler Hummer has just two Hummers on the lot. Andrew Ballard
of Tyler Hummer said, “We're virtually selling every Hummer we can get right
now. I think with the H2 buyer they have a significant amount of disposable
income and it really doesn't effect their lifestyle."

Last year,
nearly 29,000 H2's were sold nationwide. So far this year, sales of the H2 that
start at $53,000 are on pace. Gm’s Hummer Manager David Caldwell said, “Consumer
demand, as reported by our dealers, is actually a little stronger, maybe than we
thought."

The H2 get about 10-12 miles per gallon, but the bottom
line is if the buyer can afford the truck, the price of gas doesn't matter. "For
some people it's a very, very large consideration. For others it's not so much,
it certainly effects everyone," said Caldwell.

The new H3, built
in Shreveport, Louisiana, will roll out soon. It will be a new, smaller hummer
set to sell for about $30,000 and get better mileage than it's larger brothers.
"We have the H3 coming out in June, which is a smaller hummer and that will be
getting up to 20-miles per gallon," said Ballard.

The rising cost
of gasoline, so far, isn't enough to impact Hummer sales.

GM
officials say they even plan a small increase in hummer production to keep pace
with demand for the large SUV.
</SPAN></Table>