Chrysler Acquisition Complete, Now Privately Owned

AUBURN HILLS - August 3, 2007: Chrysler officially made the break with former German partner Daimler on Friday, to become the first major, privately owned North American automobile manufacturer in more than 50 years.

Tom LaSorda, President and CEO of The New Chrysler

Under the $7.4 billion deal, initially announced May 14, 2007, private equity firm Cerberus Capital Management has acquired 80.1 percent equity interest in Chrysler LLC, as the automaker is now known. The German half of the now-defunct partnership will now be called Daimler AG. Pending shareholder approval in the fall, Daimler AG will retain the remaining 19.9 percent. Chrysler’s break with German automaker Daimler became official Aug. 3, ending the nine-year old company, DaimlerChrysler. Workers are preparing for an employee celebration that is planned for Aug. 6 on the grounds of the Chrysler World Headquarters in Auburn Hills, Michigan.

Tom LaSorda, President and CEO, issued the following statement regarding the closing of a transaction for the company: "With the transaction complete, we can now focus all of our efforts on our day-to-day business by moving faster, quickly reacting to customer needs and bringing out industry- leading products," said LaSorda. "We have support from two solid partners - Cerberus and Daimler - which will give us the strong financial backing and the resources we need to fuel the long-term success of this great company."

About The New Chrysler
The New Chrysler, headquartered in Auburn Hills, Michigan, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. Total sales worldwide in 2006 were 2.7 million vehicles. Sales outside of North America were the highest in a decade with an increase of 15 percent over 2005. On the heels of the company's record product launch year (Chrysler launched 10 all- new vehicles in 2006), the company plans to extend that streak with eight all- new products in 2007. Its product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Commander and Dodge Charger. The Chrysler Foundation, the company's philanthropic arm, gave $23.6 million in grants in 2006. Chrysler is a unit of Cerberus Capital Management.

About Cerberus
Established in 1992, Cerberus Capital Management, L.P. is one of the world's leading private investment firms with approximately $25 billion under management in funds and accounts. Through its team of more than 275 investment and operations professionals, Cerberus specializes in providing both financial resources and operational expertise to help transform undervalued companies into industry leaders for long-term success and value creation. Cerberus is headquartered in New York City, with affiliate and/or advisory offices in Atlanta, Chicago, Los Angeles, London, Baarn, Frankfurt, Tokyo, Osaka and Taipei. More information on Cerberus can be found at www.cerberuscapital.com.

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