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DaimlerChrysler Announces Sale of Adtranz to Bombardier

6 August 2000

Transaction Assures the Future of Adtranz and Its Employees

    STUTTGART, Germany - DaimlerChrysler AG announced an agreement to sell its 
100% shareholding in DaimlerChrysler Rail Systems GmbH (Adtranz) to Bombardier 
Inc., a Montreal, Canada-based international aerospace and rail transportation 
group.  The sale and purchase agreement stipulates a cash consideration of $725 
million (Euro 790 million) to be paid by Bombardier for DaimlerChrysler Rail 
Systems GmbH (Adtranz) and leads to a positive impact on DaimlerChrysler's 
earnings.  The transaction is subject to approval by regulatory authorities and
DaimlerChrysler's Supervisory Board.

    Commenting on the sale Juergen E. Schrempp, Chairman of DaimlerChrysler's
Board of Management, said, "We are increasingly focusing our portfolio on our
automotive activities and automotive-related services.  Having progressively
improved Adtranz's performance to a break-even point, it is now an appropriate
time to combine Adtranz with a company which values rail activities as its
core business.  We feel Bombardier is the company best equipped to take
Adtranz into the future.  However, I would like to pay tribute to Adtranz's
Chief Executive Officer Rolf Eckrodt and his colleagues for turning the
company around."

    In 1999, Adtranz's revenues increased 7% to $3.4 billion (Euro 3.6 billion).  
In the first half-year 2000, revenues were $1.7 billion (Euro 1.8 billion), 
up 17% in the comparable period.  Incoming orders for the half year were up 26% 
to US $1.8 billion (Euro 1.9 billion).  Adtranz currently has approximately 
22,000 employees.

    Manfred Bischoff, member of the DaimlerChrysler Board of Management and as
the Chairman of the Adtranz Supervisory Board responsible for the Adtranz
business in the DaimlerChrysler Board, said, "Helping Adtranz management to
restructure the company and restore it to health has been an exciting
challenge.  Our restructuring program has put Adtranz firmly on track and has
focused the company on its core rolling stock business and services.  We can
now transfer ownership of a viable operation to a leading international
company in the rail transportation industry.  I am pleased that we now have a
clear future direction for Adtranz and its employees."

    Robert E. Brown, President and Chief Executive Officer of Bombardier,
said, "The combination of Bombardier Transportation and Adtranz will position
the new entity among the industry leaders in all activities related to the
production of rail vehicles in world markets.  This acquisition would
complement our transportation activities in terms of geographical markets,
products and services, broader capabilities, expertise and assets."

    Bombardier Inc., a diversified manufacturing and service company, is a
world leading manufacturer of business jets, regional aircraft, rail
transportation equipment and motorized recreational products.  It is also a
provider of financial services and asset management.  The Corporation
employees 56,000 people in 12 countries in North America, Europe and Asia, and
more that 90% of its revenues are generated outside Canada.  Bombardier's
revenues for its fiscal year ended January 31, 2000 totaled $ 13.6 billion
Canadian dollars.

    DaimlerChrysler is one of the world's leading automotive, transportation
and services companies, selling products in over 200 counties with
manufacturing facilities in 34 countries.  Its passenger car brands include
Mercedes-Benz, Chrysler, Jeep(R), Dodge and smart.  Commercial vehicles are
produced under the Mercedes-Benz, Freightliner, Sterling, Thomas Built Buses
and Setra brands.  The group also offers financial and other services through
DaimlerChrysler Services (debis).  With approximately 470,000 employees, in
1999 DaimlerChrysler achieved total revenues of $150.0 billion (Euro 150 billion).