-- Net profit of euro 1,395 million (Q2 2007: euro 1,849 million)

          -- Earnings per share of euro 1.40 (Q2 2007: euro 1.74)

      -- Unit sales up by 10% to 566,500 cars and commercial vehicles

    -- Revenue up by 6% to euro 25.4 billion, adjusted for exchange-rate

                             effects up by 11%

 -- Full-year EBIT from ongoing operations (excluding Chrysler) expected to

                           exceed euro 7 billion



    STUTTGART, Germany, July 24 /EMWNews/ -- Daimler AG (NYSE:

DAI) continued its successful development of the prior quarter with a very

good second quarter of 2008. "Strong unit sales and further efficiency

improvements in all of our divisions led to very good results in a

difficult environment," stated Dr. Dieter Zetsche, Chairman of the Board of

Management of the Daimler Group.



    



    Daimler achieved EBIT of euro 2,053 million in the second quarter of

this year (Q 2 2007: euro 2,134 million).



    The Mercedes-Benz Cars and Daimler Trucks divisions were able to

slightly increase their earnings. The Mercedes-Benz Vans and Daimler Buses

units also achieved higher EBIT.



    The decrease in Group earnings was mainly related to Daimler's interest

in Chrysler (charges of euro 373 million). (Special items are shown in the

table on page 9).



    Net profit amounted to euro 1,395 million (Q2 2007: euro 1,849

million), equivalent to earnings per share of euro 1.40 (Q2 2007: euro

1.74).



    Unit sales up by 10% in the second quarter



    In the second quarter of 2008, Daimler sold 566,500 cars and commercial

vehicles worldwide, surpassing the figure for the prior-year period by 10%.



    Daimler's second-quarter revenue increased from euro 23.8 billion to

euro 25.4 billion (+6%). Adjusted for exchange-rate effects and changes in

the consolidated group, revenue growth amounted to 11%.



    At the end of the second quarter of 2008, Daimler employed 274,999

people worldwide (end of Q2 2007: 271,486). Of this total, 168,342 were

employed in Germany (end of Q2 2007: 166,581).



    Details of the divisions in the first quarter of 2008



    Mercedes-Benz Cars increased its unit sales by 11% in the second

quarter. Unit sales of Mercedes-Benz brand vehicles grew by 9% to a new

record of 312,000 vehicles. smart once again achieved a significant

increase in unit sales of 24%, selling 39,500 vehicles. Revenue rose by 3%

to euro 12.9 billion.



    The division increased its EBIT by 1% to euro 1,212 million. The slight

increase in earnings was partially due to the positive unit-sales trends

for both the Mercedes-Benz and the smart brands. The good development of

unit sales was primarily driven by the C-Class models and the smart fortwo.

Additional contributions to the improved earnings came from ongoing growth

in car sales in the emerging markets, especially China and Russia, and from

further efficiency improvements. Unfavorable exchange-rate effects, higher

raw-material prices and higher costs for the development of technologies to

reduce CO2-emissions negatively affected EBIT in the second quarter of

2008.



    Daimler Trucks sold 122,800 vehicles in the second quarter of 2008,

significantly more than in the prior-year period (+10%), despite the

ongoing weakness of the U.S. economy. Revenue increased from euro 6.9

billion to euro 7.4 billion.



    The Daimler Trucks division posted EBIT of euro 608 million, thus

slightly exceeding its earnings in the second quarter of last year (euro

601 million). The result for the prior-year quarter was favorably affected

by a special gain of euro 68 million realized on the sale of real-estate

properties in Japan.



    The division's improved earnings are mainly the result of the good

development of unit sales in Europe, Latin America and some other markets,

a positive product mix, and efficiency improvements. There were negative

effects on earnings, however, from the continued difficult economic

environment in the United States and higher raw-material prices.



    Trucks Europe/Latin America (Mercedes-Benz) increased its unit sales by

a further 17% to 46,500 vehicles, thus setting another record. Trucks NAFTA

(Freightliner, Sterling, Western Star, Thomas Built Buses) increased its

unit sales by 11%. The figure for the prior-year quarter had been impacted

by a drop in demand due to stricter emission regulations in the United

States and Canada. The unit sales attained by Trucks Asia (Mitsubishi Fuso)

increased from 47,800 to 49,200 vehicles.



    Daimler Financial Services increased its total contract volume by 4% to

euro 60.4 billion in the second quarter of 2008. Compared with the prior

year, 15 additional companies were fully consolidated for the first time,

most of them in Asia and Eastern Europe. Adjusted for this effect and for

exchange-rate effects, the increase was 8%. New business of euro 7.8

billion was 6% higher than in the second quarter of 2007.



    EBIT of euro 183 million reported by Daimler Financial Services for the

second quarter of 2008 was lower than the result for the prior-year period

(Q2 2007: euro 220 million). The decrease in earnings was mainly due to

higher cost of risk compared to the low levels of the prior-year quarter.

Furthermore, there were higher expenses related to setting up the new

financial services organization in the NAFTA region following the

separation from Chrysler. There was a positive impact on earnings, however,

from the increased contract volume.



    The second-quarter EBIT of the Vans, Buses, Other segment amounted to

euro 148 million (Q2 2007: euro 257 million). Mercedes-Benz Vans and

Daimler Buses benefited from the continued very positive development of

unit sales and both achieved higher earnings. Mercedes-Benz Vans reported

EBIT of euro 262 million and Daimler Buses reported EBIT of euro 170

million.



    The Mercedes-Benz Vans unit increased its unit sales by 7% in the

second quarter of 2008, setting a new record of 78,600 vans sold in a

quarter.



    Daimler Buses sold 11,100 buses and chassis, thus surpassing the very

high prior-year sales level by 7% and setting a new unit-sales record.



    Daimler's share of the earnings of EADS amounted to euro 32 million (Q2

2007: euro 95 million). Our interest in Chrysler negatively affected EBIT

in the second quarter of 2008 by euro 373 million; this result includes

proportional expenses of euro 93 million resulting from the restructuring

measures at Chrysler. As the Group generally applies the equity method of

accounting for its interests in EADS and Chrysler with a three-month time

lag, these figures mainly reflect the developments in the first quarter of

this year. The results in connection with our interest in EADS and Chrysler

are not cash effective.



    The results for Chrysler are by no means indicative for the results to

be reported by Chrysler Holding LLC due to substantial valuation

differences between US-GAAP used by Chrysler and IFRS accounting used by

Daimler.



    During the second quarter, Daimler acquired 22.3% of the shares in

Tognum AG from EQT, a Swedish financial investor, and an additional 2.2%

through the stock market for a total of euro 640 million. Tognum is

included in the Vans, Buses, Other segment as of June 30, 2008 using the

equity method of accounting. There was no earnings contribution from Tognum

in the second quarter of 2008.



    Outlook



    Although the headwind for the automotive industry and also for Daimler

has become stronger as a result of the slowdown of global growth and the

weak economy in the United States, Daimler continues to assume that its

divisions will be able to achieve their unit-sales targets for full-year

2008.



    Based on the divisions' planning, Daimler expects total unit sales to

increase in the year 2008 (2007: 2.1 million vehicles).



    Mercedes-Benz Cars expects to increase unit sales in the year 2008. The

full availability of the new C-Class sedan and station wagon as well as the

new smart fortwo will make a big contribution to this sales increase. In

the second half of the year, we expect new sales stimulus from the recently

introduced A- and B-Class models, the CLS, SLK, SL and the new CLC. The

launch of the refreshed M-Class and especially the new GLK in late 2008

will also provide additional sales momentum in the following year. However,

for lifecycle reasons, the division expects unit sales of the E-Class to

fall somewhat, as this car is in its last full model year. In view of the

worsening economic environment, production output will be adjusted compared

with the previous planning. The changed market outlook, rising raw-material

prices and ongoing negative exchange-rate effects will also lead to burdens

on earnings that cannot be fully offset by our significant efficiency

improvements and higher unit sales. EBIT is therefore expected to be lower

than in the prior year, with a return on sales in the magnitude of 8%.



    Daimler Trucks looks forward to rising unit sales in full-year 2008.

This is largely due to the positive developments in Europe and growth in

Asian markets. Higher material costs and the effects of the weaker U.S.

economy will offset this positive development. Overall Daimler Trucks

anticipates full-year earnings in the magnitude of euro 2 billion.



    Daimler Financial Services anticipates a moderate increase in its

worldwide contract volume in full-year 2008. Despite the expenses connected

with setting up its own financial services organization in North America,

the division continues to assume that it will achieve a return on equity of

at least 14% in the full year.



    Due to strong demand for the Sprinter and the positive sales trend of

the Vito/Viano, Mercedes-Benz Vans expects significant growth with a new

unit-sales record in 2008.



    Daimler Buses also expect to match the high level of unit sales

achieved in the prior year once again.



    The Daimler Group anticipates a slight increase in the total revenue in

full-year 2008 (2007: euro 99.4 billion).



    The Daimler Group believes it continues to be very well positioned with

regard to the competition. However, it will not be possible to fully

compensate for the aforementioned negative macroeconomic factors such as

the slowdown of global growth, rising raw-material prices and unfavorable

exchange-rate effects by means of higher unit sales and further efficiency

improvements. Dr. Dieter Zetsche: "We have prepared the Group well for this

situation and fulfill all the requirements to rank among the best in our

industry also in more difficult times."



    On the basis of the divisions' projections, the Daimler Group expects

to post EBIT from ongoing operations of more than euro 7 billion in 2008.

Effects related to Chrysler are not included therein. Daimler had

previously anticipated EBIT from ongoing operations of significantly above

the prior year's level (euro 7.7 billion).



    The special items shown in the following table affected EBIT in the

second quarters of 2008 and 2007:






    Special items affecting EBIT

    Amounts in millions of euro                       Q2 2008        Q2 2007

    Daimler Trucks

    Sale of real estate in Japan                            -             68



    Vans, Buses, Other

    Gain (loss)related to the transfer of

     shares in EADS                                        35            (39)



    Restructuring program at Chrysler                     (93)             -



    Impairment of rights due to reduced

     residual values of Chrysler vehicles                 (17)             -



    Reconciliation

    New management model                                  (63)           (42)





    Further information on Daimler is available on the Internet at

http://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 in important

economic regions, especially in Europe or North America; the effects of the

credit 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.










              Figures for the 2nd Quarter 2008/First Half-Year 2008



     Daimler Group          Q2       Q2     Change     YTD      YTD    Change

     amounts in euro       2008     2007    08/07     2008     2007    08/07

     Revenue, in millions 25,382   23,844     6%(1)  48,837   47,214     3%(2)

     EBIT, in millions     2,053    2,134   - 4%      4,029    5,426  - 26%

     Net profit, in

      millions             1,395    1,849  - 25%      2,727    3,821  - 29%

       Net profit from

        continuing

         operations, in

          millions         1,412    1,443   - 2%      2,747    4,158  - 34%

     Earnings per share

      (EPS)                 1.40     1.74  - 20%       2.70     3.64  - 26%

     Employees

      (June 30)          274,999  271,486   + 1%    274,999  271,486   + 1%







     EBIT by Divisions              Q2     Q2    Change    YTD    YTD   Change

     in millions of euro           2008   2007   08/07    2008   2007   08/07

     Mercedes-Benz Cars           1,212  1,204   + 1%    2,364  1,996  + 18%

     Daimler Trucks                 608    601   + 1%    1,011  1,129  - 10%

     Daimler Financial Services     183    220  - 17%      351    434  - 19%

     Vans, Buses, Other             148    257  - 42%      519  2,129  - 76%

       Mercedes-Benz Vans (3)       262      -     -       448      -     -

       Daimler Buses (3)            170      -     -       245      -     -







     Revenue by Divisions      Q2      Q2    Change    YTD     YTD    Change

     in millions of euro      2008    2007   08/07     2008    2007   08/07

     Mercedes-Benz Cars      12,921  12,558   + 3%    25,418  24,628   + 3%

     Daimler Trucks           7,385   6,930   + 7%    13,712  14,220   - 4%

     Daimler Financial

      Services                2,231   2,095   + 6%     4,474   4,247   + 5%

     Vans, Buses, Other       4,074   3,376  + 21%     7,522   6,258  + 20%

       Mercedes-Benz Vans     2,557   2,284  + 12%     4,892   4,344  + 13%

       Daimler Buses          1,321   1,076  + 23%     2,240   1,889  + 19%







    Unit Sales           Q2       Q2    Change      YTD       YTD    Change

     in units           2008     2007   08/07      2008      2007    08/07

     Daimler Group   566,500   516,400   + 10%  1,070,300   976,600  + 10%

     Mercedes-Benz

      Cars           354,000   320,200   + 11%    672,300   591,200  + 14%

     Daimler Trucks  122,800   112,100   + 10%    230,500   231,300    -0%

     Mercedes-Benz

      Vans            78,600    73,800    + 7%    147,300   135,500   + 9%

     Daimler Buses    11,100    10,300    + 7%     20,200    18,600   + 9%







    (1) Adjusted for the effects of currency translation and changes in the

    consolidated Group, increase in revenue of 11%.

    (2) Adjusted for the effects of currency translation and changes in the

    consolidated Group, increase in revenue of 7%.

    (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.