Daimler Achieves EBIT of Euro 648 Million in Third Quarter of 2008

-- EBIT includes charges from special factors totaling euro 765 million
-- Net profit of euro 213 million (Q3 2007: net loss of euro 1,533
million)
-- Unit sales down by 3% to 522,500 cars and commercial vehicles
-- Revenue down by 7% to euro 23.8 billion, adjusted for exchange-rate
effects and changes in the consolidated group down by 5%
-- Share buyback program temporarily suspended
-- Full-year EBIT from ongoing operations of more than euro 6 billion
anticipated (excluding special Items and Chrysler)

STUTTGART, Germany, Oct. 23 /PRNewswire-FirstCall/ -- The worsening banking
crisis, its effects on the real economy, and the resulting global consumer
uncertainty had a negative impact on the business development of Daimler AG
(stock-exchange abbreviation DAI) in the third quarter of this year.

Daimler achieved EBIT of euro 648 million in the third quarter of 2008 (Q3
2007: euro 1,891 million).

The decline in EBIT is primarily the result of lower earnings at the
Mercedes-Benz Cars division. In addition, special items reduced earnings by a
total of euro 765 million (see table following the text).

There were positive effects, however, from improved earnings at the Daimler
Trucks division as well as at the Mercedes-Benz Vans and Daimler Buses units.
The profit contribution from Daimler Financial Services was also above the
prior-year level.

Net profit amounted to euro 213 million (Q3 2007: net loss of euro 1,533
million), equivalent to earnings per share of euro 0.21 (Q3 2007: loss per
share of euro 1.47). The net loss of the prior-year quarter included special
effects from the Chrysler transaction.

Daimler will temporarily suspend the further execution of its share buyback
program. Due to the suspension Daimler might not reach its initial target to
buy back 10% of the outstanding shares.

Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of
Mercedes-Benz Cars: "We recognize that the situation is very challenging
indeed. We press ahead consequently with our cost efficiency programs in all
our businesses. We'll also continue to execute our aggressive R&D and product
plans. The substance of our company is very solid - and that makes me
confident - that Daimler can and will emerge strong."

Group unit sales down by 3%
In the third quarter of 2008, Daimler sold 522,500 passenger cars and
commercial vehicles worldwide (Q3 2007: 537,000).

Daimler's third-quarter revenue decreased from euro 25.7 billion to euro 23.8
billion. Adjusted for exchange-rate effects and changes in the consolidated
group, the revenue decrease amounted to 5%.

At the end of the third quarter of 2008, Daimler employed 275,535 people
worldwide (end of Q3 2007: 271,961). Of that total, 168,667 were employed in
Germany (end of Q3 2007: 166,971).

Details of the divisions in the third quarter of 2008

Mercedes-Benz Cars sold 315,800 vehicles in the third quarter (-6%). 282,100
Mercedes-Benz brand vehicles were sold (-8%), while sales of the smart brand
rose by 20% to 32,300 units. Revenue amounted to euro 11.6 billion (Q3 2007:
euro 14.1 billion).

The division's third-quarter EBIT of euro 112 million was significantly lower
than the result for the prior-year period (euro 1,331 million), despite
further efficiency improvements.

The decrease in earnings was primarily due to the abrupt decline in sales in
the NAFTA region as well as in the major European markets. In this context,
the Group also recorded charges of euro 449 million resulting from the
reassessment of residual values of leased vehicles. Other factors with a
negative impact on earnings were an unfavorable model mix, exchange-rate
effects and higher raw-material prices.

Daimler Trucks increased its unit sales in the third quarter by 4% to 122,700
vehicles. Revenue increased from euro 7.0 billion to euro 7.3 billion.

The division achieved EBIT of euro 510 million in the third quarter, which was
higher than the prior-year result despite difficult market conditions in the
United States and Japan.

The division's earnings benefited from strong sales of trucks in Brazil and
Europe, especially in Germany. A favorable model mix and good product
positioning also contributed to the earnings development. Expenditure in
connection with new and enhanced product development had a negative impact on
the EBIT of Daimler Trucks.

Trucks Europe/Latin America (Mercedes-Benz) posted repeated growth in unit
sales of 12% in the third quarter, selling 47,300 vehicles. Trucks NAFTA
(Freightliner, Sterling, Western Star, Thomas Built Buses) sold 25,800
vehicles; this was 7% more than in the prior-year quarter, although that
period had been impacted by very weak sales in the US market. Despite its
stable business outside Japan (+1%), Trucks Asia (Mitsubishi Fuso) was not
able to compensate for the ongoing weak demand for trucks in the Japanese
market.

Daimler Financial Services division expanded its worldwide contract volume by
11% to euro 63.9 billion in the third quarter. Compared with the prior year,
15 additional companies were consolidated for the first time, most of them in
Eastern Europe and Asia. Without this effect and adjusted for exchange-rate
effects, the increase was 9%. Compared with the prior-year period, new
business increased by 19% to euro 7.7 billion; adjusted growth amounted to
18%.

Third-quarter EBIT of euro 173 million reported by Daimler Financial Services
was higher than the figure of euro 87 million posted in 2007. The result for
the prior-year period had been significantly impacted by the expense of
setting up an independent financial services organization in the NAFTA region
following the transfer of a majority interest in the Chrysler business. The
other main reason for the earnings improvement was the expanded contract
volume. A further increase in cost of risk had a negative effect on the
division's earnings.

The Vans, Buses, Other segment posted EBIT of minus euro 100 million in the
third quarter (Q3 2007: euro 319 million). The Mercedes-Benz Vans and Daimler
Buses units profited from the positive development of unit sales and both
achieved higher earnings: Mercedes-Benz Vans reported EBIT of euro 212 million
and Daimler Buses reported EBIT of euro 92 million.

Despite difficult market conditions, Mercedes-Benz Vans increased its
third-quarter unit sales by 1% to 73,200 vehicles.

Daimler Buses sold 10,800 buses and chassis in the third quarter, surpassing
the very high level of the prior-year period by 15%. A strong contribution to
this result came from sales in Europe, where 2,300 buses of the Mercedes-Benz
and Setra brands were sold (+31%). Unit sales also developed very positively
in Mexico (+44%) and South America (+3%).

Daimler's share of the earnings of EADS amounted to minus euro 8 million (Q3
2007: minus euro 20 million). Daimler's equity interest in Chrysler negatively
affected EBIT in the third quarter of 2008 by a total of euro 351 million;
this includes charges of euro 248 million relating to the restructuring
program and the reassessment of residual values. The results in connection
with the equity interests in EADS and Chrysler are not cash effective.

Outlook
In light of the worsened financial market crisis and the resulting impact on
future economic developments, forecasts are connected with a high degree of
uncertainty in the current environment. In addition, it is not yet possible to
reliably assess how quickly the action plans announced by various governments
will contribute to the stabilization of markets for financial services and
goods.

Mercedes-Benz Cars expects unit sales to be similar to the prior-year level,
despite of the negative market development and adjustments to its production
program. There will be positive impetus from the full availability of the new
C-Class sedan and station wagon and the new smart fortwo, as well as from the
A- and B-Class, the CLS, SLK, SL and the CLC, which were all newly launched or
refreshed during the year 2008. The launch of the refreshed M-Class and
especially the new GLK will provide additional sales momentum also in the
following year. However, for lifecycle reasons we anticipate lower unit sales
of the E-Class, which is in its last full model year.

Against the backdrop of massive turmoil on financial markets and the resulting
effects on economic developments in the industrialized countries, including
falls in unit sales in major markets (in some cases of double-digit
percentages) and requiring reassessments of vehicles' residual values, the
previous earnings forecasts for 2008 can no longer be achieved. Daimler now
assumes that the division will achieve EBIT in the magnitude of euro 2.5
billion and a return on sales of approximately 5% in 2008; charges of euro 449
million from the reassessment of leased vehicles' residual values are included
therein.

Daimler Trucks anticipates higher unit sales in 2008 than in the prior year.
This growth is primarily based on the positive development of unit sales in
some important markets such as Brazil, Indonesia and the Middle East. Growth
in unit sales is also indicated for Eastern Europe, but is expected to return
to a moderate level by the end of 2008. This means that after six
above-average years, the European market for commercial vehicles is
normalizing once again. For the US and Japanese markets, unit sales are
expected to be once again below the volumes of the prior year.

Growth in unit sales will be partially offset by higher raw-material costs and
the weak US economy. On this basis, the division expects to post EBIT of
approximately euro 1.7 billion in the full year. This includes charges of
approximately euro 230 million related to the repositioning of Daimler Trucks
North America.

Daimler Financial Services assumes that it will achieve a return on equity of
approximately 14% in full-year 2008. A moderate increase in contract volume is
expected compared with the end of 2007.

Mercedes-BenzVans assumes, despite the difficult economic environment, that
its unit sales will surpass the level of 2007.

Daimler Buses expects to post record unit sales once again this year.

The Daimler Group's anticipates a slight decrease in total revenue in
full-year 2008 (2007: euro 99.4 billion).

On the basis of the divisions' projections, the Daimler Group expects to post
EBIT from ongoing operations of more than euro 6 billion in 2008. This does
not include special items from the reassessment of leased vehicles' residual
values at Mercedes-Benz Cars (minus euro 449 million), the sale of real estate
at Potsdamer Platz (plus euro 449 million), the transfer of EADS shares (plus
130 million), the restructuring of Daimler Trucks North America (minus euro
230 million) and the new management model (minus euro 169 million), as well as
effects relating to Chrysler. Previously, Daimler had assumed that EBIT from
ongoing operations would exceed euro 7 billion.

However, in view of the current turmoil of financial and automotive markets,
Daimler's forecasts are connected with a high degree of uncertainty.

Despite the ongoing financial market crisis, the Group has a solid financial
position, which should also remain stable throughout the rest of the year.
The special items shown in the following table affected EBIT in the third
quarters of 2008 and 2007:

Special items affecting EBIT
Amounts in millions of euro Q3 2008 Q3 2007

Mercedes-Benz Cars
Reassessment of residual values (449) -

Vans, Buses, Other
Gain (loss) related to the transfer of shares
in EADS (7) 37
(248) -
Restructuring program/reassessment of residual
values at Chrysler

Reconciliation
New management model (61) (67)

Further information on Daimler is available on the Internet at
www.media.daimler.com.

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 euro 99.4 billion and EBIT
amounted to euro 8.7 billion. Daimler is an automotive Group with a commitment
to excellence, and aims to achieve sustainable growth and industry-leading
profitability.

This document contains forward-looking statements that reflect our current
views about future events. The words "anticipate," "assume," "believe,"
"estimate," "expect," "intend," "may," "plan," "project," "should" and similar
expressions are used to identify forward-looking statements. These statements
are subject to many risks and uncertainties, including an economic downturn or
slow economic growth of the global economy, especially in industrialized
countries; the effects of the financial crisis which could result in weaker
demand for our products particularly in the U.S. and in the European market
but also in the emerging markets; changes in currency exchange rates and
interest rates; increasing risks of inflation; the introduction of competing
products and the possible lack of acceptance of our products or services;
price increases for fuel, raw materials and precious metals; the disruption of
production due to shortages of materials, labor strikes or supplier
insolvencies; a decline in resale prices of used vehicles; the business
outlook for Daimler Trucks, which may be affected if the U.S. and Japanese
commercial-vehicle markets experience a sustained weakness in demand for a
longer period than expected; the business outlook of Chrysler, in which we
hold an equity interest, including its ability to successfully implement its
restructuring plans; the business outlook of EADS, in which we hold an equity
interest, including the financial effects of delays in and potentially lower
volumes of future aircraft deliveries; changes in laws, regulations and
government policies, particularly those relating to vehicle emissions, fuel
economy and safety; the resolution of pending governmental investigations and
the outcome of pending or threatened future legal proceedings; and other risks
and uncertainties, some of which we describe under the heading "Risk Report"
in Daimler's most recent Annual Report and under the headings "Risk Factors"
and "Legal Proceedings" in Daimler's most recent Annual Report on Form 20-F
filed with the Securities and Exchange Commission. If any of these risks and
uncertainties materialize, or if the assumptions underlying any of our
forward-looking statements prove incorrect, then our actual results may be
materially different from those we express or imply by such statements. We do
not intend or assume any obligation to update these forward-looking
statements. Any forward-looking statement speaks only as of the date on which
it is made.

Figures for the 3rd Quarter and the first nine months 2008

-------------- -- -- ------ --- --- ------
Daimler Group Q3 Q3 Change YTD YTD Change
amounts in euro 2008 2007 08/07 2008 2007 08/07
---------------- ---- ---- ----- ---- ---- -----
Revenue, in
millions 23,796 25,681 -7% 1) 72,633 72,895 -0% 2)
------------ ------ ------ --- ------ ------ ---
EBIT, in
millions 648 1,891 -66% 4,677 7,317 -36%
---------- --- ----- --- ----- ----- ---
Net profit
(loss), in
millions 213 (1,533) - 2,940 2,288 +28%
------------ --- ------ - ----- ----- ---
Net profit
(loss) from
continuing
operations,
in millions 218 (1,003) - 2,965 3,155 -6%
--------------- --- ------ - ----- ----- --
Earnings
(loss) per
share (EPS) 0.21 (1.47) - 2.94 2.13 +38%
------------- ---- ----- - ---- ---- ---
Employees
(September 30) 275,535 271,961 +1% 275,535 271,961 +1%
----------- ------- ------- -- ------- ------- --

----------- -- -- ------ --- --- ------
EBIT by Divisions Q3 Q3 Change YTD YTD Change
in millions of euro 2008 2007 08/07 2008 2007 08/07
---------- ---- ---- ----- ---- ---- -----
Mercedes-Benz Cars 112 1,331 -92% 2,476 3,327 -26%
------------------- --- ----- --- ----- ----- ---
Daimler Trucks 510 480 +6% 1,521 1,609 -5%
--------------- --- --- -- ----- ----- --
Daimler Financial
Services 173 87 +99% 524 521 +1%
----------- --- -- --- --- --- --
Vans, Buses, Other (100) 319 - 419 2,448 -83
------------------- ---- --- - --- ----- ---
Mercedes-Benz
Vans 3) 212 - - 660 - -
---------------- --- - - --- - -
Daimler Buses 3) 92 - - 337 - -
------------------- -- - - --- - -

----------- -- -- ------ --- --- ------
Revenue by Divisions Q3 Q3 Change YTD YTD Change
in millions of euro 2008 2007 08/07 2008 2007 08/07
---------- ---- ---- ----- ---- ---- -----
Mercedes-Benz Cars 11,608 14,077 -18% 37,026 38,705 -4%
------------------- ------ ------ --- ------ ------ --
Daimler Trucks 7,307 7,007 +4% 21,019 21,227 -1%
--------------- ----- ----- -- ------ ------ --
Daimler Financial
Services 2,328 2,213 +5% 6,802 6,460 +5%
----------- ----- ----- -- ----- ----- --
Vans, Buses,
Other 3,735 3,557 +5% 11,257 9,815 +15%
-------- ----- ----- -- ------ ----- ---
Mercedes-Benz Vans 2,388 2,383 +0% 7,280 6,727 +8%
--------------------- ----- ----- -- ----- ----- --
Daimler Buses 1,202 990 +21% 3,442 2,879 +20%
---------------- ----- --- --- ----- ----- ---

----------- -- -- ------ --- --- ------
Unit Sales Q3 Q3 Change YTD YTD Change
in units 2008 2007 08/07 2008 2007 08/07
--------- ---- ---- ----- ---- ---- -----
Daimler Group 522,525 536,973 -3% 1,592,821 1,513,620 +5%
--------------- ------- ------- -- --------- --------- --
Mercedes-Benz Cars 315,796 337,348 -6% 988,057 928,557 +6%
-------------------- ------- ------- -- ------- ------- --
Daimler Trucks 122,678 117,675 +4% 353,215 348,947 +1%
--------------- ------- ------- -- ------- ------- --
Mercedes-Benz Vans 73,241 72,576 +1% 220,496 208,102 +6%
------------------- ------ ------ -- ------- ------- --
Daimler Buses 10,810 9,374 +15% 31,053 28,014 +11%
-------------- ------ ----- --- ------ ------ ---

1) Adjusted for the effects of currency translation and changes in the
consolidated Group, decrease in revenue of 5%.

2) Adjusted for the effects of currency translation and changes in the
consolidated Group, increase in revenue of 3%.

3) In light of the growing relative share of the van und bus business,
Daimler Group starts disclosing the EBIT figures for Mercedes-Benz Vans and
Daimler Buses in Q1 2008.

SOURCE Daimler AG

Han Tjan, +1-212-909-9062, or Thomas Froehlich, +49-711-17-41361, both for
Daimler AG