DGAP-Adhoc: Daimler AG: Daimler to start new share buyback program

Daimler AG / Share Buyback

17.06.2008 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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• Goal of further optimizing capital structure 
• 10% of outstanding shares to be acquired for a maximum of €6 billion 

Stuttgart - For the further optimization of Daimler’s capital structure,
the Board of Management of the company decided to carry out a new
share buyback program. The Supervisory Board of Daimler AG has approved
this decision.

In exercise of the authorization granted by the Annual Meeting of 
April 9, 2008, the decision of the Board of Management allows for the
buyback of 10% or approximately 96.4 million of the outstanding shares for
a maximum amount of €6 billion. In order to optimize the buyback, shares
may also be acquired with the use of derivatives.

Daimler’s capital structure is to be further optimized with the goal of
reducing the use of equity capital, which is more expensive than debt
capital. This will avoid investment decisions being limited by excessively
high capital costs.

The share buyback program will be carried out on the stock exchange,
whereby derivatives may also be traded outside the stock exchange.

The Board of Management decision limits the period of the share buyback
until the Annual Meeting on April 8, 2009.

The shares acquired will later be cancelled without any reduction in
Daimler’s share capital. It will also be possible to use some of the shares
to serve stock option plans.

In line with the decision by the Board of Management, the share buyback
will be managed by a bank, which will make its decisions on the timing of
individual share purchases and the use of derivatives independently and
without any influence from Daimler AG.

The company started its first share buyback program at the end of August
2007. By March 28, 2008, 99.8 million shares had been bought back for €6.2
billion.

The technical details of the share buyback program are as follows: 

In accordance with the authorization granted by the Annual Meeting, the
price paid by Daimler AG for each share (excluding transaction costs)
purchased through the stock exchange may not be more than 5% higher or
lower than the price determined at the opening of Xetra trading at the
Frankfurt am Main Stock Exchange.

With the possible use of derivatives, according to the resolution of the
Annual Meeting, the price paid by the company for options may not be
substantially higher and the sale price received by the company may not be
substantially lower than the theoretical market value of the options
calculated using recognized financial mathematical methods, whereby the
agreed exercise price is one of the factors to be taken into consideration.

The derivatives used (stock options) may not be applied for the acquisition
of more than 5% of the share capital as of April 9, 2008.

The exercise price of the options (excluding transaction costs, but taking
into consideration the option bonus received or paid) may not be more than
10% higher or lower than the average closing price in Xetra trading at the
Frankfurt am Main Stock Exchange on the last three days of trading before
the conclusion of the respective option transaction.

Information on the share buyback program will be disclosed as the buyback
proceeds at www.daimler.com/ir.
Further information from Daimler is available on the internet at:
www.media.daimler.com

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 in important economic regions,
especially in Europe or North America; the effects of the subprime crisis
which could result in a weaker demand for our products particularly in the
U.S. but as well in the European market; changes in currency exchange rates
and interest rates; the introduction of competing products and the possible
lack of acceptance of our products or services; price increases in fuel,
raw materials, and precious metals; 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 effective implementation of cost reduction and efficiency
optimization programs; 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.

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.
DGAP 17.06.2008 
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Language:     English
Issuer:       Daimler AG
              Mercedesstraße 137
              70327 Stuttgart
              Deutschland
Phone:        +49 (0)711-17 413 61
Fax:          +49 (0)711-17 413 72
E-mail:       ir.dai@daimler.com
Internet:     http://www.daimler.com
ISIN:         DE0007100000
WKN:          710000
Indices:      DAX, EURO STOXX 50
Listed:       Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
              Freiverkehr in Berlin, Hannover, München, Hamburg,
              Düsseldorf; Foreign Exchange(s) NYSE
End of News                                     DGAP News-Service
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