Stuttgart/Auburn Hills –

• Preliminary figures indicate revenues up 12 percent to about Euro 148 billion ($ 149 billion)
• Continued growth of sales and revenues expected in 2000
• Eaton and Schrempp: "Innovative technologies, attractive products and state-of-the-art services for the new millennium"
• New organizational structure facilitates flexible response to growth opportunities
• and market fluctuations

DaimlerChrysler set a number of records in a successful 1999, including all-time highs in sales, revenues and earnings. According to preliminary figures, revenues will be up 12 percent (in Euro-terms) to about Eruo 148 billion ($ 149 billion).* The preliminary figures also indicate that DaimlerChrysler's operating profits will have grown more strongly than revenues, as the company projected in October.

* PLEASE NOTE:

DaimlerChrysler's statements are based on Euro-terms. For business year 1998, the Euro figures had been translated into US-Dollar ($) at an exchange rate of Euro 1 = $ 1.1733, based on the noon buying rate of December 31, 1998. The comparable $-figure for 1998 revenues was, based on this exchange rate, $ 154.6 billion / Euro 131.8 billion.

The 1999 figures in this release are unaudited and based on a convenience translation from Euro to US-Dollar ($) on the current exchange rate of about Euro 1 = $ 1.01.

DaimlerChrysler expects further increases in sales and revenues in 2000, based on today's projections. The company anticipates that the positive momentum in its automotive products and services will continue next year.

DaimlerChrysler will release detailed financial statements for 1999 at the Annual Press and Analyst Conferences on February 28, 2000.

Vehicle sales up approximately 7 percent

According to preliminary figures, DaimlerChrysler's vehicle sales rose to more than 4.8 million units in 1999 (1998: 4.5 million), up approximately 7 percent. The passenger car brands Mercedes-Benz and smart contributed 1,070,000 units (1998: 922,800). Chrysler Group (Chrysler, Dodge, Jeep® and Plymouth brands) sold approximately 3.2 million units in 1999 (1998: 3,093,700). About 550,000 (1998: 489,700) Mercedes-Benz, Freightliner, Sterling and Setra commercial vehicles were sold in 1999.

New corporate organization facilitates flexibility

The new corporate organizational structure introduced in October has led to greater flexibility for the company's vehicle brands. It has also increased each division's responsibility and given the divisions more freedom to take advantage of international growth opportunities. Each of the automotive divisions now has global responsibility and is present worldwide with a broad portfolio of innovative products that offsets market fluctuations in individual regions.

The Automotive Council as a committee of the Board of Management ensures the transfer of know-how between the automotive divisions and enables the optimal exploitation of technologies and resources in the whole process chain. The Sales and Marketing Council will coordinate the worldwide sales and marketing operations. The entire automotive business of DaimlerChrysler is now strongly positioned for the challenges of the new millennium.

Mercedes-Benz and smart Passenger Cars

The Mercedes-Benz, smart Passenger Cars division again increased revenues to more than Euro 37 billion ($ 37.4 billion) this year (1998: Euro 32.6 billion), and also set a sales record with more than 990,000 Mercedes-Benz passenger cars and about 80,000 smart cars (overall 1998 passenger car sales: 922,800). Business was especially brisk in the key markets of Western Europe, North America and Japan. More detailed sales figures for 1999 will be announced during the North American International Auto Show, which will take place in Detroit at the beginning of January 2000.

In the premium segment, the new S-class-with about 80,000 sold in 1999-enabled Mercedes-Benz to further improve its strong position.

Micro Compact Car smart GmbH achieved its sales target for 1999. Performance was particularly strong in Germany, Italy and Switzerland, where smart gained considerable market shares in its segment and has reached top positions in the registration statistics of small cars.

Chrysler Group

Overall, 1999 turned out to be another record year for the North American automotive industry. The Chrysler Group was particularly successful in the sports utility and passenger cars segments.

Revenues of the Chrysler Group with its Chrysler, Dodge, Jeep and Plymouth brands rose to around Euro 63 billion ($ 63.6 billion)-also a record (1998: Euro 56.3 billion). Worldwide shipments increased to more than 3.2 million vehicles, compared to the 3,093,700 units shipped in 1998.

Commercial Vehicles

Revenues from Mercedes-Benz, Freightliner, Sterling and Setra commercial vehicles exceeded Euro 26 billion ($ 26.3 billion / 1998: Euro 23.2 billion). Freightliner was able to continue its success story, with sales increasing by more than 50 percent worldwide.

Sales of the Commercial Vehicles division increased in all major markets, except Latin America and Turkey. New customers were captured last year through an aggressive multi-brand strategy and consistent market focus. The Commercial Vehicles division's goal is to further expand its leading market position. To this end, individual business units have been given worldwide responsibility, which will enable them to enter new markets more rapidly and directly than before.

Services and Aerospace

DaimlerChrysler Services (debis) AG posted revenues of at least Euro 12 billion ($ 12.1 billion) in 1999 (comparable 1998 figure: Euro 10 billion). Business volume once again increased, despite the fact that the telecommunications company debitel is no longer a part of the division, following a public offering and sale of part of its stock to Swisscom.

Also, in 1999, debis merged its financing business with that of the Chrysler Financial Company, improving its global market position. The IT Services business unit continued to grow, particularly outside Germany.

Revenues at DaimlerChrysler Aerospace AG (Dasa) increased to more than Euro 9 billion ($ 9.1 billion / 1998: Euro 8.8 billion). Business volume particularly improved in the Commercial Aircraft business unit. In 1999, Airbus won more than half of the orders for civil aircraft worldwide. The recently agreed-upon merger of Dasa with Aérospatiale Matra (France) and CASA (Spain) to form EADS (European Aeronautic Defence and Space Company) is a breakthrough in the reorganization of Europe's aerospace industry which is expected to create new opportunities for the profitable growth of the aerospace business. After a public offering of EADS, scheduled for the second quarter of 2000, DaimlerChrysler will own 30 percent of EADS, making it the new company's biggest shareholder.

Adtranz, TEMIC, MTU/Diesel Engines

In early 1999, DaimlerChrysler purchased ABB's 50 percent holding in Adtranz, making it a fully-owned subsidiary. Adtranz is to complete a comprehensive restructuring program by the end of 2001 in order to concentrate on key competencies, streamline production, and to adjust capacities to market conditions. The restructuring program is expected to enable Adtranz to break-even in the year 2000. Adtranz increased revenues to Euro 3.5 billion ($ 3.5 billion) this year (1998: Euro 3.3 billion).

The Automotive Electronics business unit (TEMIC) again increased revenues and incoming orders. TEMIC boosted revenues to more than Euro 800 million ($ 800 million / 1998: Euro 754 million) and order volume to more than Euro 1 billion ($ 1 billion / 1998: Euro 760 million).

The MTU/Diesel Engines business unit will probably slightly exceed the previous year's revenues and incoming order volume of Euro 921 million and Euro 914 million, respectively, despite the negative effects of unfavorable market conditions resulting from the economic and financial crisis in Asia. In the second half of the year, market trends were more positive, particularly in Distributed Power Systems. (Dec. 28, 1999)