DaimlerChrysler Closes Transaction on Transfer of Majority Interest in Chrysler to Cerberus

-- Dr. Dieter Zetsche, Chairman of the Board of Management of

DaimlerChrysler AG and Head of Mercedes Car Group: "Today marks a new

chapter in the history of our company."

-- Extraordinary Shareholders' Meeting to decide on change of name on

October 4, 2007

    STUTTGART, Germany, Aug. 3 /PRNewswire-FirstCall/ -- DaimlerChrysler
 ( DCX) today completed the closing for the transfer of a majority
 interest in the Chrysler Group and for the related financial services
 business in NAFTA to a subsidiary of Cerberus Capital Management, L.P., a
 private- equity company based in New York. A subsidiary of Cerberus takes
 over 80.1% in the Chrysler Holding LLC, while DaimlerChrysler retains a
 19.9% interest, as announced in May 2007.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20020212/DCXLOGO )
     The effects on the financial statements of DaimlerChrysler will be
 explained on August 29, 2007.
     Basically, the conditions of the transaction and the economic effects
 have not changed since the agreement was signed on May 14, 2007.
 Furthermore, DaimlerChrysler and Cerberus have agreed to support the
 financing of the majority takeover of Chrysler by Cerberus in light of
 highly volatile US loan markets. Both companies will subscribe $2 billion
 of second lien debt for Chrysler's automotive business, to be drawn within
 12 months. DaimlerChrysler's portion will be $1.5 billion. The debt will be
 priced at market conditions. One year after the closing, DaimlerChrysler
 has the right to sell this loan in the credit market. The maturity of this
 loan is 7 years.
     DaimlerChrysler's financing support is a strong sign of its overall
 determination to make sure that, under the majority of Cerberus, Chrysler
 has a good start as a successful stand-alone car company.
     As of today, the Board of Management of DaimlerChrysler AG is reduced
 to six members: Tom LaSorda, Eric Ridenour and Tom Sidlik are no longer
 members. Within the Board of Management, Bodo Uebber additionally assumes
 responsibility for procurement.
     Due to the new corporate structure, DaimlerChrysler AG is to be renamed
 as Daimler AG. The shareholders are to decide on this change at an
 Extraordinary Shareholders' Meeting in Berlin on October 4, 2007.
     Dr. Dieter Zetsche, Chairman of the Board of Management of
 DaimlerChrysler AG and Head of the Mercedes Car Group: "Today marks a new
 chapter in the history of our company. Based on the clearly defined
 strategies in our Mercedes Car Group, Truck Group, Financial Services
 business divisions and for vans and buses, and our company's healthy
 balance sheet, we have every reason to move confidently into the future."
     This document contains forward-looking statements that reflect our
 current views about future events. The words "anticipate," "assume,"
 "believe," "estimate," "expect," "intend," "may," "plan," "project,"
 "should" and similar expressions are used to identify forward-looking
 statements. These statements are subject to many risks and uncertainties,
 including an economic downturn or slow economic growth, especially in
 Europe or North America; changes in currency exchange rates and interest
 rates; introduction of competing products and possible lack of acceptance
 of our products or services; competitive pressures which may limit our
 ability to raise prices and reduce sales incentives; price increases in
 fuel, raw materials, and precious metals; disruption of production or
 delivery of new vehicles due to shortages of materials, labor strikes, or
 supplier insolvencies; a decline in resale prices of used vehicles; the
 business outlook of Chrysler in which we hold an equity interest, including
 the ability to successfully implement its Recovery and Transformation Plan;
 the business outlook for our Truck Group, which may experience a stronger
 than originally expected decline in demand as a result of accelerated
 purchases in 2006 made in advance of the effectiveness of stricter emission
 regulations; effective implementation of cost reduction and efficiency
 optimization programs, including our new management model; the business
 outlook of our equity investee EADS, including the financial effects of
 delays in and potentially lower volume of future aircraft deliveries;
 changes in laws, regulations and government policies, particularly those
 relating to vehicle emissions, fuel economy and safety, the resolution of
 pending governmental investigations and the outcome of pending or
 threatened future legal proceedings; and other risks and uncertainties,
 some of which we describe under the heading "Risk Report" in
 DaimlerChrysler's most recent Annual Report and under the headings "Risk
 Factors" and "Legal Proceedings" in DaimlerChrysler's most recent Annual
 Report on Form 20-F filed with the Securities and Exchange Commission. If
 any of these risks and uncertainties materialize, or if the assumptions
 underlying any of our forward-looking statements prove incorrect, then our
 actual results may be materially different from those we express or imply
 by such statements. We do not intend or assume any obligation to update
 these forward-looking statements. Any forward-looking statement speaks only
 as of the date on which it is made.
     Further information from DaimlerChrysler is available on the internet
 at: www.media.daimlerchrysler.com
 
 

SOURCE DaimlerChrysler AG