Daimler Benz and Chrysler in Talks

6 May 1998

    AUBURN HILLS, Mich., May 6 -- Daimler Benz and Chrysler
Corporation confirmed today that they are engaged in discussions about a
possible business combination of the two companies involving a stock
transaction in which stockholders of both companies would become stockholders
of a new company.
    The companies added that a definitive agreement has not been reached and
that any agreement would be subject to approval by the boards and shareholders
of both companies, among other conditions.
    The companies said that there could be no assurance that an agreement
would be reached or that a business combination would be implemented.
    Each company also said that it does not intend to comment further on the
discussions unless agreement is reached or discussions are terminated.

SOURCE  Chrysler Corporation