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Mayflower and DaimlerChrysler Plan US Bus Joint Venture

3 March 1999

Mayflower and DaimlerChrysler Plan US Bus Joint Venture

    LONDON, March 3 -- Mayflower Corporation announces that it
has signed a letter of intent with Freightliner Corporation of the USA, a
DaimlerChrysler company, to form a new US joint venture producing and
marketing low-floor lightweight buses.  The joint venture agreement between
Mayflower subsidiaries Walter Alexander and Dennis Bus and Freightliner
subsidiary Thomas Built Buses Inc. is expected to be concluded by 31 March
1999 with the first buses delivered in October.
    Freightliner is the market leader in the US heavy truck market.
    Thomas Built Buses is a market leader in the US school bus market with an
extensive domestic distribution network and further distribution in Canada,
Mexico, Central and South America.  It will contribute marketing, distribution
and after-sales support to the joint venture.
    Product technology will come from Mayflower's Dennis and Alexander
subsidiaries in the form of the highly successful Dart chassis and the
Alexander ALX200 body.
    Initially product will be supplied as complete buses and in kit form from
Mayflower's UK factories before local manufacture commences in North Carolina.
Mayflower and Freightliner will jointly finance tooling and working capital
requirements.