DaimlerChrysler approves share buyback program

Muamer Hodzic August 29, 2007

DaimlerChrysler (stock-exchange abbreviation DAI) today decided on a share buyback program. In exercise of the authorization granted by the Annual Meeting of April 4, 2007, the Board of Management and the Supervisory Board approved a program for the company to acquire its own shares.

This is a logical step to take in view of the high net liquidity in the industrial business as well as the good prospects for earnings and cash flows in all divisions. Following the structural and strategic realignment of the core business, this decision will also optimize the company’s capital structure and make it more efficient.

The share buyback program will be executed through the stock exchange. Nearly 10% of the outstanding shares will be acquired for an amount of up to €7.5 billion in exercise of the authorization granted by the Annual Meeting of April 4, 2007. This will fully utilize the volume authorized by the Annual Meeting. By the end of this year, treasury shares are to be acquired in a volume of approximately €3.5 billion. By the end of August 2008, the acquisition of additional shares in a volume of up to approximately €4 billion is planned, provided that the earnings situation is in line with expectations for full-year 2007. The period of the buyback program is limited until the end of August 2008.

The shares bought back are to be cancelled at a later date without any reduction in the capital stock.

Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and Head of the Mercedes Car Group: “By taking this step, we are underscoring the positive perspective for the company and all of its divisions. Both the earnings trend and the cash-flow development are very promising and give us additional scope to shape our future successfully. We also intend to let our shareholders participate in this positive development.”

On April 4, 2007, the Annual Meeting of DaimlerChrysler AG authorized the Board of Management to acquire the company’s own shares with an allocable portion of capital stock of up to €267 million, which is nearly 10% of the capital stock, and to cancel such shares without any further resolution by the Annual Meeting. The authorization is valid until October 4, 2008. The price paid by DaimlerChrysler AG for shares bought via the stock exchange (excluding transaction costs) may not be more than 5% higher or lower than the price determined in the opening auction of Xetra trading at the Stock Exchange in Frankfurt am Main on the day when the shares are bought.

The buyback will take place under the management of a bank, which will make its decision on the times of purchase independently and without being influenced by DaimlerChrysler AG.

Information on the share buyback program will be published on the Internet at www.daimlerchrysler.com/ir.