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Chrysler Receives Ruling From U.S. Tax Authorities

14 September 1998

Chrysler Receives Ruling From U.S. Tax Authorities; DaimlerChrysler Merger to Proceed With 75 Percent Minimum

    AUBURN HILLS, Mich., Sept. 14 -- Chrysler Corporation
and Daimler-Benz announced today that Chrysler has
received a private letter ruling from the U.S. Internal Revenue Service
addressing certain U.S. tax issues relating to the proposed Chrysler/Daimler-
Benz business combination.  The receipt of such a ruling is one of the
conditions to the business combination.
    Daimler-Benz and Chrysler also announced today that they will reduce the
minimum number of Daimler-Benz shares that must be exchanged in the
DaimlerChrysler exchange offer, which is the first step in the proposed
business combination, from 80 percent of the outstanding Daimler-Benz shares
(determined on a fully diluted basis) to 75 percent (determined on an
undiluted basis).  The reduction in the minimum number of shares is consistent
with the provisions of the private letter ruling.
    Nevertheless, Daimler-Benz and Chrysler are aiming for a 90 percent level
of subscription from Daimler-Benz shareholders for shares of DaimlerChrysler.
Should this be achieved, DaimlerChrysler will be able to account for the
business combination under a "pooling of interest" method, which is favorable
to both company and shareholders alike.  In this case, Daimler-Benz
shareholders will receive one additional share per 200 shares exchanged -- for
example, the rate of exchange will climb from 1:1 to 1:1.005 to the benefit of
Daimler-Benz shareholders.
    Daimler-Benz and Chrysler shareholders have been invited to extraordinary
shareholders' meetings on September 18, 1998, during which they will be asked
to vote on the proposed merger.  In a second step, Daimler-Benz shareholders
will be called upon to exchange their Daimler-Benz shares into those of
DaimlerChrysler within a period of time extending from September 24 to October
23, when it is anticipated that the offer will end.