Tracinda Corporation Appeals Judgment in DaimlerChrysler Trial

LOS ANGELES--April 28, 2005--Tracinda Corporation today announced that it has filed an appeal of the April 7, 2005 judgment by Judge Joseph Farnan, Jr. in the DaimlerChrysler trial to the United States Court of Appeals for the Third Circuit.

Terry Christensen, attorney for Tracinda Corporation, said:

"We disagree with the Court's ruling that representations made to Tracinda and other Chrysler shareholders in the proposed merger with Daimler-Benz were required to be good only for a moment in time and believe the Court's decision conveys the wrong message to the investment community and shareholders of public companies. If that analysis were correct, no shareholder could rely on any statement about any transaction, whether made in a proxy statement or otherwise, to be accurate after the shareholder vote and the transaction closed. This is especially important when shareholders are asked to take stock in a new company.

"In the months and days leading up to the merger, Daimler and Chrysler executives told Chrysler shareholders, employees and Tracinda specifically, in a lengthy proxy statement and other public statements, that the transaction between Chrysler and Daimler-Benz would be a 'merger of equals' and that former Chrysler executives would manage the new company jointly with former Daimler-Benz executives. Then, at trial, DaimlerChrysler claimed that the 'merger of equals' and joint management representations were good only up to the point when the shareholders had voted and the merger closed.

"We believe this issue is larger than the dispute between Tracinda and DaimlerChrysler and for that reason, Tracinda has appealed. Tracinda also appealed the denial of its right to a jury trial."

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.