Mercedes is First to Bring Diesel Back to California

E320 BLUETEC Makes Market Debut in Los Angeles at Mercedes-Benz FashionWeek at Smashbox Studios

LOS ANGELES, Oct. 15 /PRNewswire/ -- On the runway at this week's
Mercedes-Benz FashionWeek at Smashbox Studios, Mercedes-Benz USA
(MBUSA) unveiled a version of its E320 BLUETEC, a diesel sedan that will
immediately be available in limited numbers to California customers through
a special two- year/24,000-mile lease.
(Photo: http://www.newscom.com/cgi-bin/prnh/20071015/NYM101 )

California's stringent emissions requirements have kept new diesel
automobiles models off the California market for the better part of a
decade. The new E320 BLUETEC - distinguished as "2007 World Green Car" by
an international panel of journalists earlier this year - changes all that.

BLUETEC denotes state-of-the-art engine and exhaust technology which
produces the cleanest diesels available on the market today. Utilizing this
technology, the V6-powered E320 BLUETEC diesel is able to provide the
powerful torque of a large V8 engine with the low fuel consumption of a
four-cylinder compact.

"In order to be able to provide the power and economy of diesel
technology throughout the world, we had to make the diesel version as clean
as the gasoline model. With BLUETEC, nitrogen oxides can be reduced to such
an extent that our diesel vehicles will satisfy the strictest emission
regulations in the world -- even in the future. This makes Mercedes-Benz
the first manufacturer in the world to fully bring all exhaust gas
components under control," said Dr. Leopold Mikulic, head of powertrain
development at Mercedes-Benz Cars.

Beginning October 15, MBUSA will offer its E320 BLUETEC to customers
under a two-year/24,000 mile lease program through Mercedes-Benz Financial
Services. The E320 BLUETEC is lease-priced on a par with its gasoline
sibling, the E350.

The special limited-mileage lease program is the first step in the
company's plans to offer consumers diesel alternatives in all 50 states.
MBUSA will offer 50-state diesels across its SUV model lines (M, GL and R-
Class) late next year and will continue to add to its alternative
powertrain offerings.

According to Tom Cackette, executive director for the California Air
Resources Board (CARB), "The E320 is testimony to demanding nothing but
the cleanest vehicles for California. Mercedes-Benz has developed a diesel
emission control system that results in a car as clean as comparable
gasoline vehicles being sold here. This vehicle has shed the reputation of
diesel as a dirty technology. And we hope California has shed its
anti-diesel reputation by certifying this vehicle as the first diesel
passenger car to meet the most stringent smog emission standards in the
world."

MBUSA, which has sold diesels here in the United States for 40 years,
believes diesels are an ideal solution for today's luxury car buyers
because they yield a significant increase in fuel efficiency without
sacrificing performance or interior room. The E320 BLUETEC can go nearly
700 highway miles on a single tank of fuel.

"We're breaking new ground here as we pave the way for the return of
the diesel to California," said Ernst Lieb, president and CEO of MBUSA.
"BLUETEC is the most promising technology for customers who want to get up
to 20-40 percent higher fuel efficiency without sacrificing the performance
and the driving characteristics they're used to." According to Lieb, the
California market plays a critical role in the comeback of the diesel: "In
addition to being one of the top automotive markets in the world,
California has tremendous influence. We know we have quite a few loyal
diesel buyers there who have been waiting for the opportunity to get back
into a diesel, but we also want to tap into a new group of buyers who are
interested in making their dollar go farther without compromising
performance or their personal style."

Beyond their fuel efficiency, from an environmental standpoint, BLUETEC
vehicles are the cleanest diesels available in the world today. Since
diesels inherently burn less fuel than gasoline vehicles, they also produce
significantly lower emissions of carbon dioxide (C02). Also, in BLUETEC
vehicles particulate levels are reduced to levels comparable -- or better
than -- that of gasoline-powered vehicles. Similarly, NOX emissions are
reduced to meet the most stringent exhaust limits in the world.

The California lease program will function as a bridge as MBUSA
prepares to begin phasing in 50-state BLUETEC vehicles nationwide starting
in 2008. The first step will be the extension of the special lease program
to other states which do not currently allow sales of new diesel
automobiles in January 2008. Later in 2008, Mercedes will introduce another
BLUETEC system on its M-, R- and GL-Class vehicles. This system utilizes
AdBlue injection, a process that adds precisely measured quantities of a
urea-based solution into the exhaust stream which enhances long-term
emissions performance sufficient to meet the stringent BIN 5 standards.

About Mercedes-Benz USA

Mercedes-Benz USA, headquartered in Montvale, New Jersey, is
responsible for the sales, marketing and service of all Mercedes-Benz and
Maybach products in the United States. In 2006, MBUSA achieved an all-time
sales record of 248,080 new vehicles, setting the highest sales volume ever
in its history and achieving 13 consecutive years of sales growth. More
information on MBUSA and its products can be found on the Internet at
http://www.mbusa.com and http://www.maybachusa.com.

SOURCE Mercedes-Benz USA