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Chrysler Adopts Stockholder Rights Agreement

5 February 1998

Chrysler Adopts Stockholder Rights Agreement

    AUBURN HILLS, Mich., Feb. 5 -- Chrysler Corporation
today announced that its Board of Directors has adopted a new Stockholder
Rights Plan to replace Chrysler's current Rights Plan, which will expire
February 23, 1998.
    Under the new plan, one right will be distributed for each share of
Chrysler common stock outstanding at the close of business on February 23,
1998.
    Initially, the rights are attached to the common stock and are not
exercisable.  The rights become exercisable and will trade separately from
the common stock ten days after any person or group acquires 15 percent or
more of Chrysler's outstanding common stock, or ten business days after, or on
such later date as the Board of Directors may designate, any person or group
commences or announces their intent to commence a tender offer for 15 percent
or more of Chrysler's outstanding common stock.  Each right would entitle the
holder to purchase one two-hundredth of a preferred share at an exercise price
of $145.
    If any person or group acquires 15 percent or more of Chrysler's common
stock, the rights not held by the 15 percent stockholder would become
exercisable to purchase Chrysler common stock at a 50 percent discount.  If a
person or group acquires at least 15 percent but less than 50 percent of
Chrysler's common stock, the Board may elect to exchange each right not held
by the 15 percent stockholder for one share of Chrysler common stock.  As
under the existing Rights Plan, the rights would not be triggered by an all
cash, all shares, fully financed tender offer meeting certain conditions set
forth in the rights agreement.
    The new rights will expire on February 23, 2008.  The Board has directed
its Corporate Governance Committee to review the Plan during the fifth year of
the plan, to determine whether it continues to be in the best interests of the
Company and its stockholders.  The Board may elect to redeem the rights at
$0.01 per right.
    The rights agreement was not adopted in response to any specific effort to
acquire control of Chrysler Corporation, nor is the Company aware of any such
effort.

SOURCE  Chrysler Corporation