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DaimlerChrysler Issues Its First Global E-Bond

1 June 2000

DaimlerChrysler Issues Its First Global E-Bond

    AUBURN HILLS, Mich. and STUTTGART, Germany, June 1 DaimlerChrysler announced
today that it has successfully priced a $2 billion global electronic bond issue
offered in two tranches.  

The first tranche was $1 billion of five-year notes with a coupon of 7 3/4 
percent priced at 99.556 to yield 7.858 percent.  The second tranche was 
$1 billion of 10-year notes with a coupon of 8 percent priced at 99.861 to 
yield 8.02 percent.

    This transaction marks the company's first comprehensive global e-bond
offering as all bids and secondary trades of the bonds are capable of being
processed on-line.  The transaction was lead-managed by Goldman, Sachs & Co.

    "This global e-bond offering  reflects the innovative and forward-looking
approach to technology that investors and customers expect of
DaimlerChrysler," said Dr. Manfred Gentz, Chief Financial Officer of
DaimlerChrysler AG.

    The transaction employed electronic new-issue features such as electronic
dissemination of issue information and electronic submission of indications of
interest.  Over 40 percent of indications of interest received by Goldman
Sachs were submitted over the internet.  After the issue was priced, it began
trading electronically in the secondary market.  Institutional investors are
able to buy or sell bonds through Goldman Sachs' proprietary secondary trading
system called Web.ET.

    DaimlerChrysler's global e-bond is the first corporate bond issue to use
this new technology for trading in the secondary market.  Web.ET's point-and-
click trading technology became available for trading U.S. Treasury securities
in September 1998 and U.S. Agency securities in October 1999.

    Electronic new issuance and trading provide transparency for issuers and
investors.  Electronic new issuance also provides transparency for the issuer
in terms of its ability to see "the book being built" in real time.

    Electronic trading allows both buyers and sellers to have access to live
market quotes for the bonds.  The ability to trade corporate securities
electronically, in addition to the traditional trading channels, enhances not
only price transparency but should also enhance liquidity in the secondary
market.

    The issuing entity of the e-bonds is DaimlerChrysler North America Holding
Corporation.  The bonds are guaranteed by DaimlerChrysler AG.