smart to Launch in USA Early 2008

Press Release

smart and UnitedAuto Group agree to General Distributor Agreement

Ulrich Walker, president of smart, and Roger Penske, chairman of UnitedAuto Group (UAG), agreed on terms and conditions for bringing the smart fortwo to the United States. Recently both parties signed a General Distributor Agreement (GDA) just four months after it was announced smart would be coming to the USA. The GDA will regulate all future USA-based smart activities.

After evaluating and defining all stages for distributing smart in the USA, the GDA was established to determine the detailed market introduction strategy. The GDA outlines the allocation of functions, market launch, sales activities, after sales, service and communications.

The launch of the successor to the current smart fortwo in the USA, follows the success of the smart fortwo in Europe where more than 750,000 vehicles have been sold. The increasing demand for affordable and fuel efficient small cars in the USA make it the right time for the launch of smart in the USA.

"This is absolutely the right car in the right place at the right time. It embodies the unique combination of a lifestyle and design oriented vehicle that is ecologically appealing," said Ulrich Walker, President of smart. "smart is uniquely designed, offers the lowest cost of ownership and is very fun to drive."

Additional attributes of the vehicle include an ingenious safety management system including the Tridion safety cell, (which forms the unique design of the car), Electronic Stability Program, ABS brakes and four airbags. "We are very excited to represent smart in the United States. The reaction to the announcement, made earlier this year, has been fantastic," said Roger Penske, Chairman of UnitedAuto Group. "This is a vehicle that people gravitate to and it provides solutions to a variety of transportation issues that we face every day in the United States."

smart dealerships are expected to be announced in the second half of 2007. Dealers selected for smart stores must demonstrate a passion for the brand, commit to new and non-traditional dealership processes and have a proven record of outstanding customer satisfaction, as well as other criteria. Vehicles will be available in the USA in the first quarter of 2008.