---

Mercedes-Benz Pre-Owned Vehicle Program

8 April 1998

Mercedes-Benz Introduces Starmark Pre-Owned Vehicle Program In the New York Tri-State Area

    NEW YORK, April 8 -- Mercedes-Benz of North America, Inc.,
(MBNA), a pioneer in pre-owned vehicle programs for over a past decade, today
announced that its new comprehensive factory-backed pre-owned vehicle program
called "Starmark Pre-owned Mercedes-Benz" -- which covers previously owned
vehicles with a 12-month warranty of up to 100,000 total accumulated miles --
will now be available in the New York Tri-State Area.  New York is one of the
first markets to offer Starmark which will be rolled out nationally over the
next few months.
    "The pre-owned vehicle market is the fastest-growing segment in the
automotive industry and provides us with the opportunity to bring people into
the Mercedes family at an earlier point in time," said Mike Jackson, president
of MBNA.  "What makes Starmark unique is that it combines a decade of
experience in luxury car re-marketing, a model line renowned for its quality
and terms that are flexible, comprehensive and hassle-free for the consumer."
    Starmark offers previously owned Mercedes models for both lease and
purchase.  While the typical Starmark model is a three- or four-year-old
vehicle, cars up to eight years old are available and can be covered until
they reach up to 11 years or 100,000 miles.  All Starmark vehicles are
carefully selected to ensure that only the best cars are designated
"Starmark."
    These vehicles must pass a 130-plus point inspection performed by factory
trained technicians and are then reconditioned to bring them as close as
possible to like-new condition.
    The standard Starmark warranty coverage carries no deductible and covers
the vehicle for 12 months to a mileage cap of 100,000 miles.  It is
factory-backed as opposed to being administered by third parties (common among
other programs).  Coverage, which includes most major componentry, does not
begin until any existing new car coverage expires.  At the time of sale,
customers may purchase a Starmark Extended Warranty to continue the coverage
to four years or up to 100,000 miles.
    Regardless of which coverage option they choose, customers receive many of
the added customer-care benefits of the company's new-car warranty: Sign and
Drive service (for flat tire repair, jump starts and out-of-fuel service),
free trip routing and even trip interruption coverage (reimbursement for
meals, accommodations and travel expenses if the car must remain overnight for
repairs on a trip).  And, like every other Mercedes, regardless of age,
mileage or whether purchased new or used, MBNA's 24-hour-a-day Roadside
Assistance system is only a toll-free phone call away.
    Starmark is being supported by an extensive training and marketing
initiative. In order to sell Starmark vehicles, all of the 26 New York
Tri-State Dealer management and sales consultants had to undergo in-depth
training (provided by MBNA) to become certified.  All Starmark dealers are
required to meet certain CSI (customer satisfaction index) criteria which will
be continuously monitored by MBNA.

    Additional Starmark features include:
    -- A nationwide vehicle locator system which enables dealers to search
    other markets in order to find a Starmark vehicle that matches a
    customer's specifications.

    -- All Starmark vehicles come with individual "Monroney-style" Starmark
    window labels which call out standard, optional and aftermarket equipment
    unique to the vehicle. The price and mileage of the vehicle are also
    stated.

    -- The Starmark vehicle's background is documented via Carfax, a vehicle
    history service.

    -- The vehicle may be exchanged within seven days or 500 miles if the
    customer so desires.

    -- Starmark finance and lease rates are available from Mercedes-Benz
    Credit Corporation.

    From a marketing standpoint, Starmark will be supported by a TV and print
campaign including outdoor billboards and will receive strong support within
MBNA's relationship marketing program.  The campaign kicks off on April 20 in
the New York Tri-State Area.  The program will also be complemented by a host
of Starmark-branded dealer and point-of-purchase materials.
    According to Gregg Goolsby, Starmark product manager, "We have had a
decade of experience since we pioneered pre-owned vehicle warranty programs
back in 1988. Our objective is to provide customers with high-quality vehicles
in top condition backed by a warranty and also extend the same outstanding
after-sales care that our new-car owners enjoy.  Starmark is an enhancement of
this in that it reflects input from customers and dealers as to how to best
meet the needs of the marketplace.  What we've done with Starmark is to give
our customers flexibility in deciding what their coverage needs are rather
than take a 'one-size-fits-all' approach."

SOURCE  Mercedes-Benz of North America, Inc.