December, 1999

To: All Ford and Lincoln Mercury Dealers

Subject: Owner Notification Program 99B29 - Certain 1996 and 1997 model year Mustang, Thunderbird, Cougar, and 1997 F-Series vehicles equipped with 3.8L or 4.2L engines - Replacement of Engine Front Cover Gasket

OASIS: Yes

OWNER LIST: Yes

PARTS RETURN: Follow the provisions of the Warranty and Policy Manual for "Parts Retention and Return Procedures".

PROGRAM TERMS: This program will be in effect until March 31, 2001, regardless of mileage.

AFFECTED VEHICLES

l All 1996 and 1997 model year Ford Mustang vehicles equipped with 3.8L engines built at the Dearborn Assembly Plant from September 1, 1995 through December 31, 1996.

l All 1996 and 1997 model year Ford Thunderbird and Mercury Cougar vehicles equipped with 3.8L engines built at the Plant from September 1, 1995 through December 31, 1996.

l All 1997 model year Ford F-Series trucks equipped with 4.2L engines built at the Plant, Kansas City Truck Assembly Plant, or Truck Assembly Plant from November 1, 1995 through December 31, 1996.

REASON FOR PROGRAM Some of the affected vehicles may experience engine coolant leaks at the engine front cover gasket. If not corrected, these coolant leaks can lead to engine damage if the engine overheats from low coolant or if the oil is contaminated with coolant.

SERVICE ACTION Dealers will replace the engine front cover gasket with a redesigned gasket and change the engine oil and filter.The gasket does not need to be leaking to receive this service action.

If a coolant leak occurs at the front cover gasket and has caused engine damage, prior approval is required before performing any additional engine repairs under this program. Please call 1- 800-325-5621 before performing any additional engine repairs for further instructions and prior approval.

NOTE: Claims for engine damage without prior approval will not be accepted for payment.

All repairs identified as related damage and submitted for payment MUST be within the Owner Notification Program time limit, March 31, 2001.Repairs submitted beyond this limit will not be accepted for payment by ACES II. If a repair was completed within the program limits and the dealer believes a related damage condition was present but not detected at that time, the Warranty Action Team (WAT) should be contacted (1-800-423-8851) for consideration of a manual pay exception on a case-by-case basis.

Attachments ² Attachment I l Administrative Information ² Attachment II l Labor Allowances l Parts Ordering Information ² Attachment III l Technical Information

QUESTIONS? Claims Information 1-800-423-8851

Other Recall Questions 1-800-325-5621