Volkswagen AG and Abu Dhabi End Talks on Stock Purchase

The Board of Management of Volkswagen AG and the representatives of the Government of the Emirate of Abu Dhabi have mutually agreed to end their talks about the use of Volkswagen shares in the context of the acquisition of LeasePlan. No agreement was possible regarding the purchase price of the share package, amounting to 9.8% of the capital, under conditions prevailing in the current capital market. Both sides regret this, but see very promising perspectives for further intensive and sustained cooperation for all concerned.

The purchase of a 50 percent share of the LeasePlan Corporation N.V., Almere-Stad, Netherlands, a leading, worldwide company in the area of multi-brand fleet management will now be financed through current operations. The Supervisory Board of the Volkswagen Group has already authorized the Board of Management to proceed in this manner in its meeting on April 21, 2004.

The corporate and legal structure to be applied in LeasePlan remains unchanged. Volkswagen Financial Services Group will have a 50 percent share of the joint venture. The co-investors represented by subsidiaries, the private Saudi Olayan Group, as well as the Mubadala Development Company owned by the Emirate of Abu Dhabi will hold 25 percent respectively.