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Chrysler Corporation to Redeem Outstanding Shares

2 July 1998

Chrysler Corporation to Redeem Outstanding Shares of Series A Convertible Preferred Stock

    AUBURN HILLS, Mich., July 2 -- Chrysler Corporation
today announced that it will redeem all of the outstanding
Depositary Shares representing Chrysler Corporation's Series A Convertible
Preferred Stock.  The redemption price will be $51.85 per Depositary Share,
plus accrued interest to the redemption date.  The redemption date will be
July 24, 1998.
    Notice of redemption is being mailed today to all holders of record.  The
right of conversion of the Depositary Shares will terminate on July 17, 1998
(the fifth business day prior to the redemption date).
    The Redemption Agent for the Depositary Shares is ChaseMellon Shareholder
Services, L.L.C., 120 Broadway, 13th Floor, New York, NY, 10271.