KK's Tracinda Issues Statement Regarding DaimlerChrysler "Merger of Equals" Trial

LOS ANGELES--Feb. 1, 20041, 2004--Tracinda Corporation issued the following statement in response to today's trial conclusion:

Terry Christensen of Christensen Miller, attorney for Tracinda, said: "Testimony of the last several days has starkly illustrated what Mr. Kerkorian has been saying all along: Plain old fashioned fraud took place when Daimler Benz and Chrysler told the shareholders that the two companies had agreed to a 'Merger of Equals.' We have heard witness after witness testify that the heavily touted 'Merger of Equals' was only supposed to survive up to the point that the merger occurred. It is now clear that 'Merger of Equals' was a concept exploited by Chrysler management and Daimler to 'sell' the deal to shareholders, employees and the public.

"By calling the transaction a 'Merger of Equals' three things happened: Daimler saved $7-8 billion in the acquisition, Chrysler management got rich, and Chrysler shareholders got cheated out of a control premium.

"This case is not about whether the Daimler takeover was a good deal or a bad deal for Chrysler. The issue is whether the deal was misrepresented as a 'Merger of Equals.' Daimler wants to talk about everything else, because it is now so clear that the deal was misrepresented. Daimler's assertion that Chrysler got a good deal in light of a single negative year following the transaction is a sideshow since it ignores Daimler's takeover of the Company, the removal of qualified Chrysler senior management, the transfer of billions of dollars of cash to Germany, and the shedding of Chrysler assets and employees.

"The evidence, including the testimony of Gary Valade, the retiring DaimlerChrysler Board of Management member, clearly shows that higher prices were given up by Chrysler management in order to preserve the perception of 'Merger of Equals.' Mr. Kerkorian and the rest of the Chrysler shareholders were entitled to the opportunity to support or oppose a deal that was truthfully described - which Daimler has all but conceded it was not. Amazingly, Mr. Valade testified yesterday that he was not concerned with what they called the deal or how management was structured, as long as the deal got done."

Tracinda was Chrysler's largest shareholder with a 13.75% ownership position at the time that the business combination agreement was signed by Daimler-Benz and Chrysler. Tracinda is wholly owned by Kirk Kerkorian.