Chrysler Corporation LLC

An affiliate of private equity firm Cerberus Capital Management, L.P. of New York, will make a capital contribution of $7.4 billion in return for an 80.1% equity interest in the future new company, Chrysler Holding LLC.

DaimlerChrysler will hold a 19.9% equity interest in the new company.

Chrysler Corporation LLC produces and sells Chrysler, Dodge and Jeep vehicles, while the future Chrysler Financial Services LLC will provided financial services for these vehicles in the NAFTA region.

According to the agreement, upon the closing of the transaction, DaimlerChrysler will transfer the industrial business of the Chrysler Group completely free of debt.

"We're confident that we've found the solution that will create the greatest overall value – both for Daimler and Chrysler," states Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and Head of the Mercedes Car Group. "With this transaction, we have created the right conditions for a new start for Chrysler and Daimler."

John W. Snow, Chairman of Cerberus Capital Management, states "We welcome Chrysler into the Cerberus family of companies and believe Cerberus will be a good home for Chrysler. Cerberus believes in the inherent strength of U.S. manufacturing and of the U.S. auto industry. Most importantly, we believe in Chrysler."

The closing of the transaction is expected to take place in the third quarter of 2007.