DaimlerChrysler to Buy 40 Percent of TAG McLaren

Stuttgart/Silverstone - DaimlerChrysler and the TAG McLaren Group have agreed upon the terms of an option which provides for DaimlerChrysler to acquire 40 percent of the shares in the TAG McLaren Group.

The date of completion will be agreed following further discussions between DaimlerChrysler and McLaren. Both companies are bound by an non-disclosure agreement in respect of the commercial terms and conditons.

Jürgen E. Schrempp, Chairman and Chief Executive Officer of DaimlerChrysler said: "This is another element of our long-term strategy designed to further enhance our products and to differentiate the Mercedes-Benz brand in an increasingly competitive market. This option is consistent with our acquisition of the majority of AMG, our partner for sportive and exclusive Mercedes limousines, and the decision to build the Mercedes-Benz Maybach."

The TAG McLaren Group develops and produces high-tech products. It includes McLaren Cars Limited, TAG Electronic Systems Limited, TAG McLaren Marketing Services and Mc Laren International, winner of ten Drivers' and eight Constructors' World Championship and one of the most successful teams in the Formula One history.

Since 1995 Mercedes Benz has supplied 10-cylinder engines for the McLaren Mercedes Formula One cars. In 1998 Mika Häkkinen became World Champion in a West McLaren Mercedes. The winning of the Constructors' World Championship last year capped the most successful season to date for the partnership between Mercedes Benz and TAG McLaren.

Prior to this announcement DaimlerChrysler and McLaren Cars Limited announced plans for the market-introduction of the Mercedes Benz SLR super sports car by 2003.