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PRESS RELEASE

Mercedes-Benz Announces New Campaign for Multiple Model Launches

5 February 1997

Mercedes-Benz Unveils New Brand Campaign For Largest-Ever Model Launch Year

    MONTVALE, N.J., Feb. 5 -- In support of the most extensive
new-model launch in its history, Mercedes-Benz of North America, Inc. today
unveiled a humorous, off-beat and highly stylized brand campaign created by
its New York-based full-service advertising agency Lowe & Partners/SMS
(L&P/SMS).  The campaign is a unique blend of Mercedes 110-year heritage with
the contemporary flair of its new model line and unique ownership experience.
    Showcasing all-new Mercedes models which debut in 1997 -- the two-seater
SLK roadster, the stylish CLK coupe and the M-Class all-activity vehicle --
along with the company's C-, E-, S and SL models, the brand campaign is
designed to create awareness of the diversity of the Mercedes-Benz model line
while underscoring the qualities and heritage which have made Mercedes-Benz
one of the top five most recognized marquee in the world.
    According to Mike Jackson, executive vice president in charge of
marketing, service and sales for MBNA, "The new campaign is a 'defining
moment' for the brand.  It will do for the Mercedes-Benz brand what the
award-winning E-Class advertising did for the product -- that is augment the
rational associations people have about Mercedes-Benz with emotionally
compelling attributes of the new products.  There's no doubt that Lowe &
Partners' new campaign will dramatically change and expand the way the
marketplace thinks about Mercedes-Benz."
    Broadcast commercials will break on February 13 during prime time with a
30-second spot called "Symbols" which sets the tone for the entire campaign.
"Symbols" will run through 'sweeps' week during top-rated shows such as
Seinfeld, Friends, ER and Nightline.  On February 20, four additional spots in
the campaign will debut and run in rotation.  The broadcast campaign is
preceded by a 'teaser' print campaign in early February.
    "The commercials work to shift our view to encompass more of what Mercedes
is really about here in the U.S.," said Marvin Sloves, Lowe & Partners/SMS co-
chairman.  "Mercedes will always be about an extraordinary tradition of
excellence and style but we will now Convey the fun in that tradition: what
it's like to own a car that is beautifully styled and an absolute joy to
drive.  The advertising relies on symbols throughout the campaign to capture
the spirit of Mercedes -- and imbues everyone from engineers to owners with
that spirit."
    The initial spot, "Symbols," created by L&P/SMS to open the campaign,
flashes a wide array of seemingly unrelated images on screen to a dance score
beat -- from a pyramid to a piggy bank; a light bulb to a bald eagle, the
Venus De Milo to Superman -- representing such qualities as excellence,
performance, safety, value, innovation and fun.  The ad poses the question:
"Can a symbol stand for all these things?"  The answer, as the Mercedes star
logo appears on the screen, is: "It depends on the symbol."
    The next four ads in the campaign emphasize a single emotion each.
"Falling in Love" begins with the voice of Marlene Dietrich singing "Falling
in Love Again."  As scenes from milestones in Mercedes-Benz' 110-year history
are shown, the factory workers, engineers, race drivers and car owners all
join in, elevating the song to a passionate anthem.  The spot, which showcases
the new SLK roadster and the CLK coupe, ends with the word "Passion" in the
lower right hand corner of the screen.
    "Joy" is the hallmark of "Don't Fence Me In," in which a re-recording of
the old Gene Autry song accompanies scenes of a couple enjoying a romantic
top-down drive in the new SLK roadster through a moonlit night in the
Southwest.  Owls, coyotes and rattlesnakes sway to the music and fish jump in
synchronized formation as the couple heads for a lovers' lookout.
    In "Mercury," the classic god of speed races flat-out with a rocketing
cannonball as a Mercedes SL effortlessly overtakes them.  The single word
"Performance" closes the spot.
    "Press Conference," a 60-second spot, showcases the full model line in a
blend of retro-rock music and Ziegfeld imagery.  During a parody of a press
conference, an "executive" performs custom lyrics in an early-sixties rock
style while a chorus of stereotypical engineers sing along to a "follow-the-
bouncing-ball" melody.
    "We designed the new advertising to appeal to both current Mercedes owners
and a new generation of Mercedes customers.  It has a sense of high style and
a sense of humor; a satisfying emotional mix that comes with the experience of
a Mercedes," said Lee Garfinkel, co-chairman and chief creative officer for
L&P/SMS.  "Mercedes has all the great qualities.  The creative challenge in
this campaign was to fully communicate both that rich heritage and the
contemporary relevance of the brand."
    Print advertising in top-market newspapers and more than twenty national
magazines will complement the emotional appeal and brand emphasis in the
broadcast spots.  The campaign will also appear on outdoor billboards as well
as in some unusual venues including subway ads, bus billboards and airports.
    The overall broadcast buy also includes late night, cable and sports
programming with heavy coverage in eleven major markets including New York,
Los Angeles, Chicago, Miami, and Washington, D.C.
    In addition to Mercedes-Benz of North America, Lowe & Partners/SMS handles
clients such as Citicorp, The Coca-Cola Company, Sony, Ralston Purina, Western
Union, Whitehall-Robins, Denny's, Marriott, Nabisco, Braun, Perdue and Time
Warner.  Headquartered in New York City, the agency employs 295 people and had
billings of $550 million in 1995.  Lowe & Partners/SMS is part of The Lowe
Group which is ranked 14th among agency networks (Advertising Age, 1996) and
has billings of over $3 billion.
    Mercedes-Benz of North America, with its 330 dealers, is responsible for
the sales, service, marketing and distribution of Mercedes-Benz models in the
U.S.  The Mercedes model line includes the mid-size C-Class model line
starting at $30,450; the full-size E-Class model line which begins at $39,900;
its flagship S-Class model line starting at $63,300 and the renowned SL
coupe/roadsters which begin at $79,600.
    The new models which debut in 1997 (as 1998 models) include the
two-seater SLK roadster, priced at $39,700 -- recently voted North American
Car of the Year -- which is currently arriving at dealer showrooms; the
stylish CLK coupe which arrives in the fall and will retail at approximately
$40,000, and the M-Class, Mercedes first entry into the sport utility market
and the first Mercedes model to be built in the U.S.  The M-Class -- which
combines passenger car ride, handling and safety features with off-road
capability -- will be priced in the mid-$30,000 range when it goes on sale in
the fall.  Mercedes will also introduce a new wagon and a new all-wheel-drive
system for its E-Class model line in the fall.
    The company sold 90,844 vehicles in the United States during 1996 (an 18
percent increase over the previous year) and plans to break 100,000 in annual
sales volume this year for the first time in its history.

SOURCE  Mercedes-Benz of North America, Inc.




CONTACT: Donna Boland of Mercedes-Benz of North America, 201-573-6893 or 1-888-MBNEWS1;
or Michael Draznin of Lowe & Partners/SMS, 212-403-6991