Daimler Expands Activities in China

• Framework agreement covering investments of about 2 billion euros signed with joint venture partner BAIC: - Production of several models of the new compact cars and the GLK - Construction of an engine plant for passenger cars and vans and expansion of its technical capacity to 250,000 units - Foundation of an R&D center

• Dr. Dieter Zetsche: "With this framework agreement, we are laying the essential strategic foundations for our long-term and significant participation in the growth of the key market China."

Berlin, Germany – Daimler AG and its Chinese partner Beijing Automotive Industry Corporation (BAIC) today signed a strategic framework agreement to further expand their cooperation in China. The signing ceremony was held in the presence of German Chancellor Dr. Angela Merkel and the Chinese Prime Minister Wen Jiabao. Attending were Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, Ulrich Walker, Chairman and CEO of Daimler Northeast Asia, and Xu Heyi, Chairman of BAIC. With this agreement, Daimler is further expanding its activities in China and the successful cooperation with BAIC.

About 2 billion euros will be invested in the Joint Venture Beijing Benz Automotive Co, Ltd. (BBAC). Dr. Dieter Zetsche: "With this framework agreement, we are laying the essential strategic foundations for our long-term and significant participation in the growth of the key market China. The projects agreed upon are further central elements of our China strategy for the sustainable development of our business. As early as 2020, at least one in five premium compact cars is expected to be sold in China. In the light of this enormous growth potential, we are resolutely switching to attack mode with the local production of our new compacts."