Daimler AG and Investor Consortium Continue Agreement on EADS

- Continuation of agreement of 2007

- No change in ownership structure or other arrangements

- Bodo Uebber, CFO of Daimler AG and Supervisory Board Chairman of EADS N.V.: "The confirmation of the voting-rights structure gives EADS stability to consistently pursue its strategic goals."

Mar 19, 2010, 04:30 ET from Daimler Corporate Communications

BERLIN and STUTTGART, Germany, March 19 /PRNewswire-FirstCall/ -- Daimler AG (NYSE: DAI) and the consortium of private and public-sector investors have confirmed to continue the agreement reached on February 9, 2007 concerning the equity interests and voting rights in the European Aeronautic Defence and Space Company (EADS). At Germany's Federal Chancellery on March 16, 2010, Daimler and the investors stated their willingness to continue the existing agreement without any changes.

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As a result, Daimler continues to hold 22.5% of the voting rights in EADS while its economic interest is still 15%. Thus, the existing balance of voting rights between German and French shareholders remains unchanged.

"The confirmation of the voting-rights structure gives EADS the stability to consistently pursue its strategic goals. Ten years after EADS was founded, Daimler still plays a crucial role in the continuation of this success story of European integration," stated Bodo Uebber, Member of the Board of Management of Daimler AG and Chairman of the Supervisory Board of EADS N.V.

The ownership structure was worked out under the coordination of the Federal Chancellery and was agreed upon on February 9, 2007. At that time, Daimler placed its entire 22.5% equity interest in EADS into a company in which the investor consortium holds a one-third interest through a special purpose entity. This is equivalent to the investor consortium holding a 7.5% equity interest in EADS.

The agreement includes an option for Daimler to end this structure as of July 1, 2010. Following consultation with the investor consortium, Daimler will not make use of this option. The existing ownership structure and other arrangements remain unaffected.

The investor consortium consists of 15 investors: seven in the private sector and eight in the public sector. The private-sector investors hold 60% of the special-purpose vehicle and the public-sector investors hold 40%.

The private-sector investors are Allianz, Commerzbank, Credit Suisse, Deutsche Bank and Goldman Sachs, each of which holds 10% of the special-purpose vehicle, as well as Morgan Stanley and Sal. Oppenheim, each of which holds 5%.

On the side of the public sector, the KfW banking group holds 13%, HGV Hamburger Gesellschaft fur Vermogens- und Beteiligungsverwaltung (State of Hamburg) holds 10%, Hannoversche Beteiligungsgesellschaft (State of Lower Saxony) holds 5%, Bayerische Landesbodenkreditanstalt, Anstalt der Bayerischen Landesbank holds 3.5%, LfA Forderbank Bayern holds 1.5%, Landesbank Baden-Wurttemberg and Landeskreditbank Baden-Wurttemberg – Forderbank (L-Bank) each holds 2.5%, and Bremer Investitions-Gesellschaft (State of Bremen) holds 2%.

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About Daimler

Daimler AG is one of the world's most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides its customers with a full range of automotive financial services including financing, leasing, insurance and fleet management.

The company's founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As an automotive pioneer, Daimler continues to shape the future of mobility. The Group applies innovative and green technologies to produce safe and superior vehicles which fascinate and delight its customers. With the development of alternative drive systems, Daimler is the only vehicle producer investing in hybrid drive, electric motors and fuel-cell systems, with the goal of achieving emission-free mobility in the long term. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment.

Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the world's most valuable automotive brand, Mercedes-Benz, the brands smart, Maybach, Freightliner, Western Star, Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt, New York and Stuttgart (stock exchange symbol DAI). In 2009, the Group sold 1.6 million vehicles and employed a workforce of more than 256,000 people; revenue totaled euro 78.9 billion and EBIT amounted minus euro 1.5 billion.

SOURCE Daimler Corporate Communications