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SPEECH: ALAN MULALLY, DERRICK KUZAK AND THEFORD CONNECTIVITY TEAM AT THE 2009 CONSUMERELECTRONCIS SHOW; JAN. 8, 2009

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Following are remarks given by Alan Mulally, President & CEO, Ford Motor Company, Derrick Kuzak, Group Vice President, Global Product Development, The Americas, Doug Buczkowski, Director, Electrical/Electronic Systems Engineering and Doug VanDagens, Director, Connected Services at the 2009 Consumer Electronics Show in Las Vegas, Nevada on January 8, 2009.

Alan Mulally

Hello and good afternoon. It is great to be here.At the 2007 CES, Microsoft and Ford unveiled the next big thing for in-car connectivity, SYNC,a fully integrated, voice-activated, in-car communications and entertainment system. In just twoyears, SYNC has become a big success. And by this Fall, we expect sales to top the 1 millionmark. We think that's fantastic. We're able to achieve this success thanks to our terrific partners.This is an exciting time in the connectivity of the automobile. Imagine the possibilities for wherewe go next. Together, those of us in this room are limited only by our collective imagination.Think about that: unlimited potential for how, together, we can connect and digitize theautomobile. Together, we can make information ubiquitous. It is an amazing opportunity andalso an awesome responsibility. Together, we must take all that is possible and focus our efforts.We must focus on that which is valuable, compelling and that which offers our customers theopportunity to be one with the world and truly live one life. A life without boundaries betweenwork and play, between friends and co-workers and between home and office.At Ford, we are working hard to be the automotive leader in infotainment and connectivity. Atthe same time, we are focused on Ford's historical commitment to making safe and efficient

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transportation affordable for all. Today, that affordability means the developments we bring tomarket in terms of: safety, environment, quality, and yes, connectivity are available andaffordable to millions. That is one of the reasons you saw us launch SYNC on the Ford Focus,instead of on one of our luxury models.Leading customer-driven innovation is what Ford is all about and we are excited to be here withyou as we look at the next big things in infotainment and technology. For example, when itcomes to infotainment our exclusive relationship with Sony is creating a listening environment inthe car that rivals many home systems. And by fully leveraging our partnership with Sony, weexpect to deliver more innovations even faster.SYNC and other features we were first to offer such as SIRIUS Travel Link™ fit nicely in ouroverall strategy as the industry leader in safety. By working with great technology partners likeMicrosoft, we can continue to help people remain connected while driving and also help themkeep their eyes on the road.You know what is so great about SYNC? This... the cell phone.No other car company is better leveraging such a simple, elegant solution based on the mostpopular communication device used today by millions of people around the world. And I broughta few members of our Ford team with me today to tell you why.Derrick Kuzak, Ford’s group vice president of Global Product Development, is going to sharewith you how we are doing this and why it is different from other automakers’ approaches.Plus, key players on our Connected Services team are going to share with you what we are doingto make this technology even easier for people to use.People who know me know that I operate under a philosophy of working together. It is how weworked at Boeing and it is how we operate at Ford. We believe that including everyone,communicating openly, respecting all ideas and building strong relationships is what will help usbe successful. Working together allows us to pursue continuous innovation and qualityimprovement in everything we do.Yes, we are a car company, but we are learning to think like an electronics company when itcomes to bringing fresh, new and innovative technologies and products to market. And we knowthat we will be most successful in bringing true innovation to customers if we work with the besttechnology experts like many of you here with us.Today, we are celebrating the successful partnerships we have already formed with SYNC.Companies like Microsoft, Tellme®, airbiquity®, Telenav®, INRIX®, SIRIUS and others.With products like SYNC, we are beginning to provide our customers a higher level of connectivity as well as personalization.Today’s connected world is all about keeping in touch with your social network including family,

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friends and business colleagues. We know this, as you do, from extensive research. And in myworld, the focus group of our five children reminds me of that on a daily basis. They areconstantly sending me input. “Hey dad, check out this article in Wired magazine.” Or, “Here issome great music you should use in your Ford commercials.” I treasure the feedback and becausethey are connected with the world around them I am a little better connected as well. And this isonly the beginning. With SYNC, you will soon be able to move seamlessly from your home, toyour car, to your office, living that one life and staying connected all the time wherever you go.Now, here to tell you more about how we plan to keep delivering this kind of leadingconnectivity is Derrick Kuzak.

Derrick Kuzak

Thank you, Alan. And good afternoon, everyone.In my job, I'm really fortunate to be able to set the direction for product development at Ford. I'mproud to say that our products are the best, or among the best, in fuel economy, quality andsafety. And we are the leader when it comes to in-vehicle connectivity.None of that has happened by accident. It's the result of an extremely focused effort by Ford'steam of engineers and technology specialists, who have helped us deliver not just great features,but also industry-leading tools.What you're looking at is something we call the Virtual Test Track Environment. We call itVIRTTEX for short. It's like having an Xbox on steroids, but it's been around a lot longer. I'msure gamers could appreciate getting their hands on this. But it's not for sale. VIRTTEX is ourstate-of-the-art driving simulator. We use it to simulate real world driving conditions,and to study things, like the effects of sleep deprivation on drivers, or what happens when peopletry to multitask such as eating and driving at the same time, or to see how drivers deal withdialing or talking on handheld cell phones. We have invested heavily in this type of research andno other automaker has anything quite like it.VIRTTEX is about making sure our customers sit in a driving environment that is ergonomicallycorrect, and driver friendly, with controls that are easy to locate, intuitive to operate, anddisplays that are easy to read. Our ultimate goal is to make sure we are minimizing or eliminatingdistractions, so that our customers have a more enjoyable, even safer, driving experience.As Alan said, Ford's goal is to lead the industry into a new era of in-vehicle connectivity.Consequently, we are exploring, or I should say exploiting, three key areas in the world of connectivity: There's beamed in, such as beaming information in through a satellite. There'sbrought in, as in the driver's mobile phone. Cell phones will always evolve faster than the car.It’s your area of expertise and where we look to you for ideas. And finally, built in, such as an in-dash computer or displays. That's our area of expertise.All three of these areas need to work together seamlessly, to connect our customers to theirworld, and the information they need.