DaimlerChrysler AG: Focus on the smart fortwo 25.03.2006, 08:31 Ad-hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————————————————— Focus on the smart fortwo – New smart fortwo comes in 2007 – Discontinuation of the smart forfour model, depending on negotiations with Mitsubishi Motors Corporation (MMC) and other P artnern – Sustainable profitability confirms Stuttgart – DaimlerChrysler AG plans to focus on the smart fortwo in order to make the smart brand sustainable for the future. This confirms the profitability of smart, and from 2007 the brand is expected to generate positive results. The planned measures for the further development of the smart business model include the following points: – The consistent focus on the smart fortwo; – the intended adjustment of the smart fortwo smart forfour; – the anchoring of smart and in particular the smart fortwo as a long-term fixed and important component of DaimlerChrysler’s product portfolio; – as well as the complete integration of smart into the Mercedes organization. Overall, these steps would result in a staff reduction of 300 employees at smart in Böblingen. The smart forfour is produced by MMC at its 100% subsidiary Netherlands Car B.V. (Nedcar) in Born, the Netherlands. The measures described above still require the approval of the Management Board and the Supervisory Board of DaimlerChrysler AG. The expenses required for DaimlerChrysler in this context are expected to reach an order of approximately one billion euros. Further information from DaimlerChrysler on the Internet:www.media.daimlerchrysler.com