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Agreement with US Pension Benefit Guaranty Corporation (PBGC), Chrysler and Cerberus on pending issues Redemption of remaining 19.9% shareholding

Stuttgart - Daimler AG (stock-exchange abbreviation DAI), Chrysler,

Cerberus and the US Pension Benefit Guaranty Corporation (PBGC) signed a

binding term sheet on April 27, 2009 covering issues still pending between

the parties in connection with Chrysler.

Under this agreement, Daimler’s remaining 19.9% shareholding in Chrysler

will be redeemed and Daimler will forgive repayment of the loans extended

to Chrysler, which were already written off in the 2008 financial

statements.

In addition, Daimler has agreed to pay US $200 million into Chrysler’s

pension plans on the date of the execution of definitive agreements and in

each of the next two years. In this way, Daimler is helping to secure

pension payments to former employees of DaimlerChrysler. The existing

pension guaranty of US $1 billion vis-à-vis the PBGC will be reduced to an

amount of US $200 million and will remain in place until August 2012.

Chrysler and Cerberus waive any claims that might arise from

representations and warranties made in the transaction of August 3, 2007,

including the accusations made against Daimler in 2008 that Daimler

allegedly improperly managed certain issues in the period between the

signing of the agreement and the conclusion of the transaction. This also

applies to the accusation that incomplete information was provided on the

transaction.

Following the transfer of the term sheet into the final definitive

agreements, the relationship between Daimler and Chrysler will solely

consist of supplier-customer relations, including limited support for

certain dealer financing until the end of September 2009, as well as

certain guaranties.

The effect on EBIT resulting from this agreement, which will be reflected

in Daimler’s financial statements for the second quarter of 2009, is

estimated at up to US $0.7 billion. The payments to be made in the years

2009 through 2011 amount to US $200 million per annum.

Further Investor Relations information on Daimler is available on the
Internet via Newsroom | Daimler > Investor Relations and on handhelds via
Newsroom | Daimler > Investor Relations.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
You received this investor relations release because you
subscribed to this service of Daimler AG.
If you want to unsubscribe this IR Newsletter:
Unsubscribe | Daimler > Investor Relations > IR Services > IR Newsletter

Our Daimler Web site Newsroom | Daimler > The Group offers a variety of additional
information.
In the section "Investor Relations" you will find much about the Daimler
share.

Sincerely,

Daimler AG
Investor Relations
[email protected]
 

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Discussion Starter #3
Employee Notification/Info

A Message from Bob Nardelli

Posted Tuesday, Apr 28, 2009, 7:14 am in Employee News
Dear Employees,

In keeping with our commitment to ongoing communications during this critical time for our company, I am pleased to announce a resolution of Daimler’s remaining 19.9 percent share of Chrysler Holding LLC.

* Chrysler, Daimler AG and the U.S. Pension Benefit Guaranty Corp. (PBGC) have signed an agreement under which Daimler’s remaining percent share of Chrysler will be redeemed, and Daimler will forgive repayment of previous loans extended to Chrysler

* This agreement facilitates our proposed alliance with Fiat and represents another step on our road to meeting U.S. government requirements by the April 30 deadline

* Daimler will pay $600 million into Chrysler’s pension plans over the next three years with the first $200 million payment being made on the date of the execution of definitive agreements, as well as $200 million in each of 2010 and 2011. These payments will help secure future pension payments to retirees

We continue to remain focused on completing these and all other transactions needed to qualify for ongoing financial support from both the U.S. and Canadian governments. As always, we are committed to preserving Chrysler and the jobs associated with its future success.

Please be assured that we will continue to communicate new information as it happens during this important week for our company. In the meantime, thank you again for your continued support and dedication during these stressful times.

Bob
 
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