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2004.05.12 No. 234
DaimlerChrysler AG and Hyundai Motor Company Announce Realignment of Strategic Alliance

DaimlerChrysler AG and Hyundai Motor Company announced on May 12, 2004 that they have agreed to realign their strategic alliance to better reflect their respective companies` current business and strategic objectives. The parties have agreed to continue their cooperative efforts on a project-by-project basis, and it is anticipated that this realignment will have substantial benefits for both parties.

Contents of Mutual Agreement :

ㆍ Joint development and manufacture of a family of four cylinder gasoline engines between DaimlerChrysler, Hyundai Motor and Mitsubishi Motors Corporation (the `World Engine Project`)

ㆍ Distribution of Hyundai Motor`s Atos and Verna (Accent) passenger car models into the Mexican market through DaimlerChrysler`s affiliate

ㆍ Joint procurement activities

ㆍ Supply by DaimlerChrysler of medium duty engines (OM906) to Hyundai Motor for medium buses

ㆍ Termination of the Commercial Vehicle Engine Joint Venture Plant and Commercial Vehicle Joint Venture,
=> HMC to purchase DaimlerChryler AG`s 50% stake in Daimler
     Hyundai Truck Corporation, the Engine Joint Venture Plant.
   * Reference : Announcement made on May 12, 2004 `Equity
      Investment in Major Shareholder`

ㆍ Settlement amount for the termination of the CVJV :
     KRW 38,250,000,000
   * The announcement made on Feb 15, 2003 `Disosal of
      equity in other corporation` has been cancelled.

Reason for realignment :

Since commencement of the strategic alliance in September 2000, there have been significant changes in the global commercial vehicle and automotive markets, which have resulted in a re-prioritization of both companies` respective strategic objectives. To better address these conditions, the companies determined it was mutually beneficial to realign the alliance in order to reflect more realistically current market conditions. The companies expect that these measures will better position the strategic alliance to deliver value and to pursue additional projects going forward.

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