Press Release

Chrysler Announces Sale of Defense Subsidiary

11/27/96

Chrysler Announces Agreement to Sell Pentastar Electronics

AUBURN HILLS, Mich., Nov. 25 -- Chrysler Corporation
today announced that it has entered into an agreement to
sell Pentastar Electronics, Inc., a subsidiary that produces automatic
test equipment for military applications, to PEI Acquisition
Corporation, a private investor group in Huntsville, Alabama.

The terms of the sale agreement were not announced.  Closing of the
transaction is expected to occur within 60 days and is subject to
customary conditions.

Pentastar Electronics, based in Huntsville, Alabama, has approximately
350 employees and approximate revenues of $50 million in 1995.

Two former subsidiaries of Chrysler Technologies Corporation,
Electrospace Systems, Inc., a defense electronics unit, and Chrysler
Technologies Airborne Systems, Inc., an airborne system unit, were
sold to E-Systems, Inc., a subsidiary of Raytheon Company, in June
1996.

Upon closing the sale of Pentastar Electronics, Chrysler will have
completed its goal to divest all its aerospace and defense business,
in accordance with its commitment to focus on its core automotive
business.