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DaimlerChrysler's Subsidiary debis Systemhaus and Deutsche Telekom Combine IT Activities

27 March 2000

DaimlerChrysler's Subsidiary debis Systemhaus and Deutsche Telekom Combine IT Activities

 Strategic partnership creates stronger competitive position in the IT sector

          Deutsche Telekom acquires 50.1-percent of debis Systemhaus


    STUTTGART, Germany, March 27 DaimlerChrysler's subsidiary
debis and Deutsche Telekom will combine their information technology
activities in a joint venture.  As part of the agreement, Deutsche Telekom
will acquire a 50.1-percent interest in debis Systemhaus by means of a capital
increase.
    This move will provide debis Systemhaus with a strong partner who plans to
further intensify IT activities as a strategic business division.  The
agreement between DaimlerChrysler and Deutsche Telekom calls for debis
Systemhaus to continue all its operations, and improve its competitive
position in the fast-growing IT services sector through additional investment.
The partners agreed not to release further details of the joint venture
contract.  The agreement is subject to approval of the DaimlerChrysler
Supervisory Board.
    "With Deutsche Telekom, we have found a partner who will further expand
debis Systemhaus as one of its core businesses," said DaimlerChrysler Chairman
Juergen E. Schrempp.  "Our current telematics joint venture, Tegaron, already
provides an excellent basis for combining our telematics operations.
    Our main concerns during the negotiations were the future prospects for
debis Systemhaus and its employees.  Through the strategic partnership between
DaimlerChrysler and Deutsche Telekom, we have assured value growth,
particularly in the interest of our shareholders.
    "debis welcomes this joint venture because it will help improve debis
Systemhaus' market position even further," said debis Chairman Dr. Klaus
Mangold.  Commenting on the strategic focus of his company, he added, "In the
future, debis will strongly expand DaimlerChrysler's international financial
service activities and also strengthen the area of mobility services.  The
company will also play a key role in expanding DaimlerChrysler's activities
throughout the entire value chain of the automotive business."
    Over the next few years, DaimlerChrysler will continue to be a primary
customer for debis Systemhaus' information technology products and services.
debis Systemhaus generated 25-percent of its revenues through business with
DaimlerChrysler in 1999.  In recent years, it has also expanded business and
external customers in Germany and abroad.
    debis Systemhaus, which is the IT Services business unit of
DaimlerChrysler Services (debis), is headquartered in Leinfelden-Echterdingen,
Germany.  The company's revenues increased 31-percent in 1999 to Euro 2.9
billion.  It currently employs more than 20,000 people.