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Mercedes-Benz M-Class Production in 2000 Increases 17% Over Last Year

28 December 2000

Mercedes-Benz M-Class Production in 2000 Increases 17 Percent Over Last Year
    *  106,890 vehicles produced for the worldwide market

    *  80,005 produced in Tuscaloosa

    *  Expansion plans underway for next generation  M-Class

    TUSCALOOSA, Ala., Dec. 27 Mercedes-Benz M-Class production
increased 17 percent in 2000, with 106,890 vehicles built for the world
market, it was announced today by Mercedes-Benz U.S. International, Inc.
(MBUSI).
    At its plant in Tuscaloosa, Alabama, 80,005 M-Class vehicles were produced
in 2000, a three percent increase over last year's 77,692.  To meet the strong
demand for the M-Class in Europe, 26,885 vehicles were produced at the
Steyr-Daimler-Puch plant in Graz, Austria.
    "This was a very successful year for the M-Class, and a very busy one here
at MBUSI in Tuscaloosa.  We realized another production increase both here in
Tuscaloosa and in Graz to help us meet customer demand around the world," said
Bill Taylor, MBUSI President and CEO. "In addition, we launched the model year
2001 M-Class and began building the ML270 diesel in Tuscaloosa for
distribution in Europe and other parts of the world.  We did it while
continuing to raise the quality bar, and that is a tribute to the hard work
and dedication of our team members.  Plus, we have received tremendous support
from our colleagues in Graz, who played a key role in helping us reach our
total production figures."
    In the U.S., the largest single market for the M-Class, sales were up
almost 18 percent year-to-date through the end of November.  The M-Class has
been the top-selling Mercedes-Benz vehicle in the U.S. this year.
    As a result of the tremendous M-Class success, in August, DaimlerChrysler
AG announced plans for a $600 million expansion of the Tuscaloosa plant.  The
expansion will double the size of the facility, double current production
capacity and create approximately 2,000 new jobs.  Currently, some 1,900 "team
members" work at MBUSI.
    MBUSI, the Tuscaloosa-based manufacturer of the Mercedes-Benz M-Class,
currently produces the V6, ML320; V8, ML430; V8 ML55 AMG; ML270CDI Diesel, as
well as right-hand drive versions of the M-Class for sale in more than
135 markets worldwide.
    The Tuscaloosa plant completed its production for the year on December
22nd, and will be shutdown for the holidays until January 2, 2001.

    In 2000, MBUSI celebrated the following milestones:

    *  MBUSI announced plans to partner with FuelCell Energy, The Southern
       Company, and Alabama Municipal Electric Authority to build and install
       a fuel cell power plant on site at the M-Class facility.  The project
       is called the Alabama Direct Fuel Cell Demonstration Project.

    *  The 200,000th M-Class rolled off the assembly line in May.

    *  MBUSI was re-certified to the ISO 14001 international environmental
       standard with zero non-conformances, the only DaimlerChrysler plant
       outside of Germany to receive this certification.

    *  In July, MBUSI began producing the ML270 CDI Diesel in Tuscaloosa for
       distribution outside the U.S.

    *  In August, DCAG announced a $600 million expansion, that will double
       the size of the plant, double the workforce and double production to
       160,000 units per year.  Construction for the expansion will begin mid-
       2001 and be completed by the end of 2003.

    *  MBUSI donated $1.5 million to the University of Alabama and Stillman
       College, both in Tuscaloosa, for the development of co-op and
       scholarship programs.

    *  MBUSI was named the "Corporation of the Year" and Bill Taylor named
       "CEO of the Year" by the South Regions Minority Business Council for
       the company's diversity initiatives.

    *  In October, MBUSI announced plans to build a $7 million Childcare &
       Wellness Center on-site for team members and their families.  It is
       expected to open in early 2002.

    *  MBUSI hosted DaimlerChrysler Environmental Day, which raised $200,000
       for 12 Alabama Environmental charities.  This was the first time the
       event was held outside of Germany.

    *  In November, the company broke ground for both its $600 million plant
       expansion and its $7 million Childcare and Wellness Center.