DaimlerChrysler Off-Highway Solidifies Presence in North America with the Formation of MTU Detroit Diesel

DETROIT, Jan. 11, 2005 -- MTU Friedrichshafen (Germany) and Detroit Diesel Corporation (USA) announced the formation of a new division for Off- Highway engine activities, MTU Detroit Diesel. The group will continue to be headquartered in Detroit, Michigan. MTU Detroit Diesel will be a separate division of Detroit Diesel Corporation and will be an integral part of DaimlerChrysler Off-Highway.

MTU Detroit Diesel will have responsibility for the application engineering, manufacturing, sale and service for off-highway engine products in marine, construction, industrial, power generation, petroleum and defense markets in the United States, Canada and Mexico.

MTU Detroit Diesel was formed through a longstanding partnership between MTU Friedrichshafen GmbH and Detroit Diesel Corporation dating back to 1994. Through DaimlerChrysler's acquisition of Detroit Diesel, the partnership has expanded under DaimlerChrysler's Off-Highway division and includes the off- highway activities of DaimlerChrysler's Commercial Vehicle Division and its VM Motori SA subsidiary.

"Doing business now in North America as MTU Detroit Diesel shows our commitment to the off-highway markets in NAFTA. Our customers and markets will greatly benefit from the extensive technical knowledge, the experience and the broad product line within our business unit," stated Volker Heuer, head of DaimlerChrysler Off-Highway and CEO of MTU Friedrichshafen GmbH.

An indication of this is the successful North American introduction of the Series 900 Off-Highway engine, manufactured in Germany. More than 800 Series 900 Off-Highway engines have been delivered to North America and Canada so far. "MTU Detroit Diesel as the new name of our NAFTA operations reflects the strength of our two brands in North America," Heuer continued.

"We are proud to have MTU Detroit Diesel as our new identity. MTU and Detroit Diesel have a strong history and presence throughout the world and North America. Linking the reputation of these two strong brand names will further improve our position in the market," said Ulrich Kemnitz, Senior Vice President of MTU Detroit Diesel.

MTU Detroit Diesel will continue to build the Series 4000, Series 2000 and Off-Highway Series 60 in the Detroit Diesel engine manufacturing facility in Redford, Michigan.

"We are confident and look forward to continued expansion in our core markets through our established distribution network in North America," said Kemnitz.

MTU Detroit Diesel is a leading supplier of off-highway engines for North America offering a complete line of 22 to 13,000 horsepower diesel engines for marine, construction, industrial, power generation, petroleum and defense markets. These markets are serviced both directly and through DaimlerChrysler Off-Highway's worldwide network of more than 1,100 authorized distributor and dealer locations. Through its North American headquarters in Detroit, Michigan, MTU Detroit Diesel is responsible for the engineering, manufacturing, sales and service of its off highway engines and engine-related products.

MTU Detroit Diesel is a separate division from Detroit Diesel Corporation and organized under the direction of the DaimlerChrysler Off-Highway business unit.

Detroit Diesel Corporation, headquartered in Detroit, Michigan is engaged in the design, manufacture, sales and service of on-highway heavy duty diesel and alternative fuel engines, automotive diesel and other engine related products for the on-highway markets.

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