Chrysler Financial Exits the Lease Market in the State of New York

* Chrysler Financial Exit Effective May 1, 2004

* Company Urges Legislators to Change Antiquated Law

FARMINGTON HILLS, Mich., March 25 -- Chrysler Financial, a business unit of DaimlerChrysler Services North America LLC , announced today it will no longer offer leasing in the state of New York beginning May 1, 2004. New York remains the only state in the country that has failed to amend or repeal its antiquated unlimited lessor vicarious liability law.

Under the existing law in New York the "owner" of a motor vehicle is responsible for personal injury and property damage caused by the driver of a leased vehicle, regardless of any fault or responsibility of the leasing company. With leasing, the finance company holds the title to the vehicle and therefore has significant exposure under the existing vicarious liability statutes.

"The current legislative environment in New York has forced us to exit based on the significant financial exposure we risk if we continue to offer leasing in this market," said Klaus Entenmann, Vice President -- Chrysler Financial. "Chrysler Financial has made every effort, along with the New York State Automotive Dealers Association and the Alliance of Automotive Manufacturers, to encourage changing legislation in the state of New York to no avail," said Entenmann.

While leasing will cease to be an option available for customers in New York, Chrysler Financial may reenter the leasing market if meaningful reform is forthcoming from the New York legislature.