DCX Update on Financial Performance and Outlook for 2003

STUTTGART, Germany and AUBURN HILLS, Mich., June 3 -- Following a Board of Management meeting today in Stuttgart, DaimlerChrysler is issuing additional guidance to the capital markets as to its likely financial performance in the second quarter and for the year as a whole.

With DaimlerChrysler's first quarter results, the Group announced that the Chrysler Group would find it difficult to achieve the operating profit target of $2 billion for 2003. DaimlerChrysler's analysis of the developments in the North American market, in particular further incentive increases, indicates that Chrysler will likely record an operating loss of around euro 1 billion in the second quarter. In addition to lower revenues from ongoing sales this result is primarily attributable to a revaluation of dealer stocks and residual values.

The Chrysler Group has already initiated actions and partially implemented substantial additional cost savings and would expect to report a slightly positive operating profit (before restructuring expenses) for the year as a whole.

Elsewhere the Group continues to perform in line with original planning expectations even though the economic situation remains very difficult. DaimlerChrysler would thus continue to expect that for the full-year 2003, Mercedes Car Group will match its strong results for 2002 in terms of unit sales, revenues and earnings. At Commercial Vehicles DaimlerChrysler remains of the view that earnings will be better than in 2002. At Services DaimlerChrysler also expects higher operating results than in 2002. Despite the anticipated performance of the Chrysler Group DaimlerChrysler will endeavor to achieve an operating profit from ongoing businesses of about euro 5 billion at a Group level.