Chrysler Financial to Cease Leasing in Rhode Island

FARMINGTON HILLS, Mich., June 24 -- Chrysler Financial, a business unit of DaimlerChrysler Services North America LLC, will cease leasing in the state of Rhode Island beginning August 1, 2005, if the current vicarious liability legislation passed by the state legislature two years ago lapses without being renewed by June 30, 2005.

If the current law lapses, Rhode Island will be left with an unlimited vicarious liability law that holds the "owner" of a motor vehicle responsible for personal injury and property damage caused by the driver of a leased vehicle, regardless of any fault or responsibility of the leasing company. With leasing, the finance company holds the title to the vehicle and therefore has significant exposure under the unlimited vicarious liability statutes.

"Chrysler Financial strongly supports the industry effort to renew the vicarious liability legislation that is two years old," said William F. Jones Jr., Vice President -- Chrysler Financial. "If the current legislation is allowed to expire, Chrysler Financial will be forced to exit the Rhode Island leasing market based on significant financial exposure if we continue to offer leasing."

In 2004, Chrysler Financial ceased leasing in the state of New York due to the state's unlimited vicarious liability law.

About DaimlerChrysler Services North America LLC

The company provides brand-specific financing for automotive dealers' inventories and their retail consumers and does business as Mercedes-Benz Credit and Chrysler Financial. As DaimlerChrysler Services Truck Finance it also finances commercial vehicles for affiliate products such as Freightliner, Sterling and Western Star. The company serves as the headquarters for operations in the United States, Canada, Mexico, South America and Puerto Rico and has more than 5,800 employees who manage a portfolio of more than $95 billion with nearly five million contracts. DaimlerChrysler Services North America is a member of the DaimlerChrysler Financial Services group of companies. This group is headquartered in Berlin, Germany, and operates in 39 countries with an employee base exceeding 11,300 and a global portfolio of approximately $138 billion. DaimlerChrysler Financial Services group is one of the leading financial services entities worldwide. For more information on DaimlerChrysler Services in the Americas visit http://www.daimlerchryslerservices.com/na .