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Shareholders Support Merger of Daimler-Benz and Chrysler

26 October 1998

Shareholders Support Merger of Daimler-Benz and Chrysler With Overwhelming Majority

    STUTTGART, Germany, Oct. 26 -- Approximately 97 percent of
Daimler-Benz shares were tendered for exchange for DaimlerChrysler
shares during the 30-day exchange offer for Daimler-Benz AG shareholders.
This has met the preconditions for the merger between Daimler-Benz and
Chrysler , and, subject to Chrysler's reissuing of "tainted" treasury
shares which are expected to be contributed to Chrysler's pension funds, the
new company should be able to present its accounts using the advantageous
"pooling of interests" method.
    Juergen E. Schrempp, chairman of the management board of Daimler-Benz,
said:  "This is an overwhelming result which shows that nearly all our
shareholders are convinced of the tremendous benefits this merger offers.  We
also see this result as a strong vote for our management.  With this
outstanding support, we feel even more encouraged to create one of the world's
most successful companies."
    As announced, with a tender in excess of 90 percent, all Daimler-Benz
shareholders will receive a bonus of one share per 200 shares held.  Cash will
be paid in lieu of fractional shares.  According to Securities and Exchange
Commission (SEC) regulations,  the exchange offer has been extended for 10
business days; it will expire on Friday, November 6, 1998 at 12:00 noon.  The
reason for this extension is the bonus now offered to Daimler-Benz
shareholders.
    Manfred Gentz, chief financial officer of Daimler-Benz, said:  "The result
of 97 percent is the best result ever achieved worldwide in an exchange offer.
We are very pleased that almost all of our retail investors have tendered
their shares, even against some loud and misleading campaigns of a few
individuals."
    Initial trading of DaimlerChrysler shares on international stock markets
is expected to begin in mid-November under the new ticker symbol DCX.  As of
today, Monday, October 26, the Daimler-Benz shares tendered can be traded
fully under a new security identification number on all German stock
exchanges.  These shares will be included in the German share index DAX and
thus replaced the remaining Daimler-Benz shares.  Simultaneously, the New York
Stock Exchange (NYSE) will start "when-issued" trading of DaimlerChrysler
shares today.
    The merger of Daimler-Benz and Chrysler will create the world's third
largest automobile manufacturer.  Daimler-Benz and Chrysler ideally complement
each other in terms of product spectrum and regional concentrations.