DaimlerChrysler AG and Magna Europe AG announce Redemption of Eurostar Shares from Steyr-Daimler-Puch Fahrzeugtechnik

Auburn Hills, Mich. -- An agreement has been reached jointly by DaimlerChrysler and Magna that the shares of Eurostar Automobilwerk, Graz, currently held by Steyr-Daimler-Puch Fahrzeugtechnik (SFT), Graz, will be redeemed by DaimlerChrysler. This change in business structure at Eurostar is based on the good business relationship between DaimlerChrysler and Magna and will not have any impact on the operations at Eurostar. As Magna had been a supplier to both parts of the merged DaimlerChrysler group, it is a strategically important step for DaimlerChrysler to take full control of Eurostar now.

This is a technical decision by the two companies to accelerate the planned ownership agreement now rather than wait until after the 2004 model year referenced in the original Eurostar Joint Venture Contract.

The partnership orginally formed in 1990 has been very important during the start up phase for Eurostar to facilitate the production of Chrysler's most important vehicles in Europe. The eight years of operations at Eurostar have resulted in many positive benefits for the City of Graz and Province of Styria. The 1500 employees at Eurostar have produced 315.000 Chrysler Voyager minivans for sales in worldwide markets. SFT has provided valuable technical support for planning and implementation of the manufacturing operations and provided legal, financial, tax and other assistance with government agencies of Austria and Styria. DaimlerChrysler will now do these acitivities directly.

DaimlerChrysler will continue to produce and expand international sales of the Chrysler Voyager in all Minivan worldwide markets which continues in the best interest for all Eurostar employees and Eurostar suppliers. Responsibility for Management of the Eurostar production operations will remain with DaimlerChrysler in the same manner as currently exists.

Prior to forming the joint venture, SFT was already a supplier to the former Chrysler Corporation. SFT developed, designed and produced the all-wheel-drive system which is used in all Voyager Minivans produced in Europe and North America.

After this change SFT will continue to produce the Jeep Grand Cherokee and the Mercedes E-class 4-Matic, M-Class and G-Class models under contract to DaimlerChrysler.