Daimler AG and Investor Consortium Continue Agreement on EADS

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%.

Further information on Daimler is available on the internet at: http://media.daimler.com

This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including a lack of further improvement or a renewed deterioration of global economic conditions, in particular a renewed decline of consumer demand and investment activity in Western Europe or the United States, or a downturn in major Asian economies; a continuation or worsening of the tense situation in the credit and financial markets, which could result in a renewed increase in borrowing costs or limit our funding flexibility; changes in currency exchange rates or interest rates; the ability to continue to offer fuel-efficient and environmentally friendly products; a permanent shift in consumer preference towards smaller, lower margin vehicles; the introduction of competing, fuel-efficient products and the possible lack of acceptance of our products or services, which may limit our ability to adequately utilize our production capacities or raise prices; price increases in fuel, raw materials and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a further decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization programs at all of our segments, including the repositioning of our truck activities in the NAFTA region and in Asia; the business outlook of companies in which we hold an equity interest, most notably EADS; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety, the resolution of pending governmental investigations and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk Report" in Daimler's most recent Annual Report and under the headings "Risk Factors" and "Legal Proceedings" in Daimler's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect, then our actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.

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

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