1
FOR RELEASE
                                                             [LOGO] CHRYSLER
                                                                    CORPORATION
THURSDAY, FEBRUARY 5, 1998

CHRYSLER CORPORATION
CIMS 485-06-48
1000 Chrysler Drive
Auburn Hills MI 48326-2786
                                             Contact: Lori McTavish 248-512-2666
                                                        Megan Giles 248-512-2670


                  CHRYSLER ADOPTS STOCKHOLDER RIGHTS AGREEMENT

         AUBURN HILLS, MICH. -- Chrysler Corporation today announced that its
Board of Directors has adopted a new Stockholder Rights Plan to replace
Chrysler's current Rights Plan, which will expire February 23, 1998.

         Under the new plan, one right will be distributed for each share of
Chrysler common stock outstanding at the close of business on February 23, 1998.

         Initially, the rights are attached to the common stock and are not
exercisable. The rights become exercisable and will trade separately from the
common stock ten days after any person or group acquires 15 percent or more of
Chrysler's outstanding common stock, or ten business days after, or on such
later date as the Board of Directors may designate, any person or group
commences or announces their intent to commence a tender offer for 15 percent
or more of Chrysler's outstanding common stock. Each right would entitle the
holder to purchase one two-hundredth of a preferred share at an exercise price
of $145.

                                     (more)


   2
                                      -2-

     If any person or group acquires 15 percent or more of Chrysler's common
stock, the rights not held by the 15 percent stockholder would become
exercisable to purchase Chrysler common stock at a 50 percent discount. If a
person or group acquires at least 15 percent but less than 50 percent of
Chrysler's common stock, the Board may elect to exchange each right not held by
the 15 percent stockholder for one share of Chrysler common stock. As under the
existing Rights Plan, the rights would not be triggered by an all cash, all
shares, fully financed tender offer meeting certain conditions set forth in the
rights agreement.

     The new rights will expire on February 23, 2008. The Board has directed
its Corporate Governance Committee to review the Plan during the fifth year of
the plan, to determine whether it continues to be in the best interests of the
Company and its stockholders. The Board may elect to redeem the rights at $0.01
per right.

     The rights agreement was not adopted in response to any specific effort to
acquire control of Chrysler Corporation, nor is the Company aware of any such
effort.

                                    - ### -

ON THE INTERNET

VISIT CHRYSLER'S MEDIA RELATIONS WEB SITE AT HTTP://WWW.MEDIA.CHRYSLER.COM FOR
ADDITIONAL CHRYSLER NEWS.