Mercedes Benz

OFFICIAL PRESS RELEASE

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Daimler AG to acquire 22.3% equity interest from EQT
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Daimler to participate in growth potential: protection of
long-term supply relations between Daimler and Tognum
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Blocking minority stake targeted

Stuttgart, Apr 30, 2008 - Daimler AG aims to acquire EQT’s 22.3% equity interest in Tognum AG and has entered into an agreement in this matter. The proposal on this matter has been approved by the Supervisory Board of Daimler AG today. Thanks to the optimized shareholder structure and the initial public offering in 2007, Tognum AG has become a globally leading producer of off-highway engines with above-average operating margins. As EQT indicated its willingness to sell its stake in Tognum, Daimler will now be able to protect its long-term supply relations with Tognum by taking over this equity interest.

The price per share is €20.00. On this basis, the purchase price would be approximately €585 million, making Daimler the largest shareholder in Tognum.
Daimler has also arranged to acquire an additional nearly 1% of the shares in Tognum.
In the short to medium term, Daimler aims to acquire a blocking minority stake in Tognum. As a consequence of the equity interest, Daimler will appoint two of the members of the Supervisory Board of Tognum in the future.
The former Daimler AG disposed of its off-highway activities at the end of 2005 because the company then faced numerous operational challenges and was about to consolidate its operations. This led to a focus on the core business, and Daimler therefore did not want to make the substantial investment required to improve Tognum’s competitiveness.

Daimler and Tognum continued their traditionally intensive cooperation also after the sale of Tognum. For example, the Mercedes-Benz plant in Mannheim supplied more than 17,000 diesel engines and the Detroit Diesel Corporation plant in Detroit more than 5,000 diesel engines to Tognum in 2007. They are used for example in agricultural machinery, industrial applications such as cranes, pumps or snow cats, marine applications, as well as in power generation systems. In particular, volumes in the fast-growing worldwide industrial-agricultural market are to be further expanded in the future, thus also making a contribution to the long-term supply with engines from Daimler.

Tognum generates annual revenue of more than €300 million from sales of engines from Daimler and an additional €160 million from sales of drive shafts to Daimler.
Furthermore, Daimler and Tognum are currently discussing the possible future supply of Daimler’s new and technologically leading medium-duty engine generation (MDEG) in the power segment below MTU’s future new engine Series 1600.
Tognum today is one of the world’s leading suppliers of off-highway engines whose profitability could be improved significantly in recent years. In 2007, revenue increased by 12% compared with the prior year to €2.8 billion and adjusted EBIT rose by 26% to €390 million. Adjusted return on sales increased to more than 14% in 2007.
The transaction is to be completed in the third quarter of 2008 at the latest, after receiving the approval of antitrust and other authorities.

About Daimler
Daimler AG, Stuttgart, with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the largest manufacturer of commercial vehicles in the world. The Daimler Financial Services division has a broad offering of financial services, including vehicle financing, leasing, insurance and fleet management. Daimler sells its products in nearly all the countries of the world and has production facilities on five continents. The company’s founders, Gottlieb Daimler and Carl Benz, continued to make automotive history following their invention of the automobile in 1886. As an automotive pioneer, Daimler and its employees willingly accept an obligation to act responsibly towards society and the environment and to shape the future of safe and sustainable mobility with groundbreaking technologies and high-quality products. The current brand portfolio includes the world’s most valuable automobile brand, Mercedes-Benz, as well as smart, AMG, Maybach, Freightliner, Sterling, Western Star, Mitsubishi Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges in Frankfurt, New York and Stuttgart (stock exchange abbreviation DAI). In 2007, the Group sold 2.1 million vehicles and employed a workforce of over 270,000 people; revenue totaled €99.4 billion and EBIT amounted to €8.7 billion. Daimler is an automotive Group with a commitment to excellence, and aims to achieve sustainable growth and industry-leading profitability.

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