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DaimlerChrysler Acquires an Interest in TAG McLaren

3 February 2000

DaimlerChrysler Acquires an Interest in TAG McLaren

    *  Option to buy 40 percent shareholding exercised
    *  Long-term continuation of Formula One partnership
    *  Prof. Juergen Hubbert, 'The results of a close and beneficial
       relationship'
    *  Ron Dennis, 'An historic milestone in the further development of the
       TAG McLaren Group'

    STUTTGART, Germany, Feb. 3 -- DaimlerChrysler today announced
that its option to buy shares in the TAG McLaren Group has been exercised.
The option agreement had been signed in July of last year.  As of January 2000
DaimlerChrysler owns a 40 percent stake in the Group.  Ron Dennis and TAG
Group S.A., who will continue to be in charge of operational management
control, own stakes of 30 percent each.  It has been agreed that the purchase
price for the shares will be kept confidential.
    Simultaneously, Mercedes-Benz and McLaren International confirmed the
long-term continuation of their highly successful collaboration in the field
of Formula One motorsport.  The current World Champion, Mika Hakkinen, is a
member of the West McLaren Mercedes team which was the winner of both the
Constructors' and Drivers' Championships in 1998 -- in the fourth year of the
McLaren-Mercedes partnership in Formula One.  McLaren is one of the most
successful teams in Formula One, having won eight Formula One Constructors'
World Championships and a record 11 Drivers' World Championships.
    The announcement follows the earlier decision by DaimlerChrysler and
McLaren Cars Ltd. to jointly develop the Mercedes-McLaren SLR super sports car
and bring it to the market in 2003.  In conjunction with this project, the two
partners will invest in the development and production of the SLR as well as
in the construction of a new production facility as part of the new TAG
McLaren corporate headquarters near Woking, Surrey, United Kingdom.
    The TAG McLaren Group, based in Woking, is a specialized hi-tech group of
companies.  It comprises McLaren International (Formula One), McLaren Cars
(high performance road cars), TAG Electronic Systems (automotive electronic
systems), TAG McLaren Marketing Services (marketing services), McLaren
Composites (advanced composite structures) and other activities which are
related to motor racing.
    Juergen Hubbert, DaimlerChrysler Member Board of Management responsible
for the Mercedes-Benz and smart passenger car business, stated, "The
investment in TAG McLaren is the result of our increasingly close and mutually
beneficial cooperation in Formula One and in other areas.  It forms a part of
DaimlerChrysler's long-term strategy of maintaining Mercedes-Benz's leadership
in engineering performance, technological edge and brand image in the face of
increasingly stiff competition.  It also ties in with our strategic
orientation toward developing the sporting accents of the Mercedes-Benz brand,
initiated with the decision to acquire a majority interest in AMG."
    Ron Dennis, Chairman and Chief Executive Officer of the TAG McLaren Group,
commented, "This is an historic milestone in the further development of the
TAG McLaren Group.  The equity participation of DaimlerChrysler will further
strengthen TAG McLaren.  It will also permit an even closer cooperation
between TAG McLaren and DaimlerChrysler, which will make even greater use of
the synergies that exist to the benefit of all shareholders and employees of
the Group.  Our new corporate headquarters and research and development centre
will put us in the optimum position to exploit the available opportunities
even more effectively."