VOLKSWAGEN AG: Volkswagen AG has issued the following information: Dienstag, 10. Januar 2017 - 19:52

10-Jan-2017 / 19:40 CET/CEST

Volkswagen AG confirms that it is in advanced discussions with the US
Department of Justice and U.S. Customs and Border Protection. The aim of
the discussions is to reach a settlement agreement regarding the settlement
of certain criminal investigations and certain civil fines in connection
with the Diesel issue in the USA.

Volkswagen AG further confirms market rumors that the company negotiated a
concrete draft of a settlement agreement with the aforementioned US
authorities which contains criminal and  civil fines with a total amount of
USD 4.3 Billion as well as measures to further strengthen the Compliance-
and Control-Systems including the appointment of an Independent Monitor for
the next three years. Further, part of the settlement agreement is a Guilty
Plea regarding certain US criminal-law provisions and a Statement of Facts
on the basis of which the fines have to be made.

The final conclusion of the settlement agreement is still subject to the
approval by the Management Board and the Supervisory Board of Volkswagen AG
and by the competent corporate bodies of further Group Companies involved.
The competent corporate bodies will deal with this issue in the very short
term, possibly even during today, the 10 January 2017 or tomorrow, the 11
January 2017. A final conclusion of the settlement agreement is further
subject to the execution by the competent US authorities and to the
approval of the competent US courts.

In case of a settlement agreement, the payment obligations  are expected to
lead to a financial expense that exceeds the current provisions. The
concrete impact regarding the annual result 2016 cannot be defined at
present due to its dependency on various further factors.

Language:    English
   Company:     VOLKSWAGEN AG
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                38440 Wolfsburg
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   Phone:       +49 (0)5361 9 - 49840
   Fax:         +49 (0)5361 9 - 30411
   E-mail:      oliver.larkin@volkswagen.de