CSC - (OO ABLZSY- S623

-Audi of America, Inc.

Audi of America, inc.
July 2008 9800 Hamlin Road

Auburn Hills, Mi 48328

United States of America

Subject: Warranty Extension for 2000 - 2003 Model Year Audi A4 or Audi TT wowwaudiusa.com
Equipped with 1.8L Turbo Engine

Dear Audi Owner or Lessee,

We are writing to inform you that Audi is providing revised maintenance instructions and a
warranty extension covering certain timing belt tensioner system related repairs on 2000 — 2003
model year Audi A4 and Audi TT vehicles equipped with 1.8L Turbo engines. Our records
show that you are the owner of one of these vehicles.

IF YOU NO LONGER OWN OR LEASE THE VEHICLE, PLEASE DELIVER THIS
LETTER, AND THE ENCLOSED MAINTENANCE BOOKLET INSERT AND CLASS
ACTION SETTLEMENT NOTICE, TO THE CURRENT OWNER OR LESSEE, IF
KNOWN.

What is the Issue?

Some Audi owners and lessees have reported internal engine damage resulting from a broken
timing belt. If the timing belt of your vehicle. were to break, the engine will not run and may
sustain serious internal damage.

The Class Action Settlement

The programs which are outlined in this letter are part of a proposed settlement of a class action
concerning this issue. The settlement has been preliminarily approved by the United States
District Court for the Central District of California, and a formal Notice, also approved by the
Court, is enclosed with this letter. The Notice explains the terms of the Settlement and your
options in detail. Please read it carefully.

Please note that the revised maintenance recommendations and the extended warranty will go
into effect immediately whether or not the proposed class action settlement is approved by the
Court.

What Will Audi Do?

Audi is implementing an extended warranty for timing belt related engine damage for 2000 —
2003 model year Audi A4 and Audi TT vehicles equipped with the 1.8L Turbo engines to
105,000 miles, regardless of time in service. This extended warranty is fully transferable to any
subsequent owner. This extended warranty does not affect - and is in addition to - any other
applicable warranty covering your vehicle. This extended warranty does not cover replacement
or repair of the timing belt system as part of scheduled maintenance or as indicated by
inspection of the system.

In addition to the extended warranty, Audi is providing an inspection of your vehicle’s timing
belt and tensioner system, free of charge during your next scheduled maintenance at a mileage

of up to 105,000 The extended warranty will be voided if this inspection is not completed at an
authorized Audi dealer within 1,500 miles of the next scheduled maintenance as required in the
owner’s manual or maintenance guide that was provided with your vehicle. This inspection
and other inspections required in the revised maintenance instructions included with this
letter must be performed in order to qualify for the extended warranty. Be sure to retain
proof of these inspections.

If your vehicle has more than 105,000 miles, and the originally installed timing belt has
previously been replaced, you may obtain a free inspection on or before September 30, 2008 at
any authorized Audi dealer.

Audi will cover necessary engine repairs if a broken timing belt causes a malfunction in your
engine at or before 105,000 miles and you have had the timing belt and tensioner system
inspection completed within 1,500 miles of the next scheduled maintenance.

This warranty extension does not cover normal wear and tear or engine damage due to improper
maintenance or timing belt or tensioner system repair or replacement which occurs as a result of
recommended inspections.

Enclosed you will find a page insert for your maintenance guide regarding Audi’s revised
requirements for inspecting and replacing the timing belt and tensioner system. Please note the
required inspection every 40,000 miles and mandatory replacement not later than 105,000
miles. Please insert into your maintenance guide.

What We Would Like You To Do

Please contact your authorized Audi dealer and arrange for an appointment so that the timing
belt system inspection can be performed within the time requirements as described in this letter.
This inspection will typically add approximately one half hour to the time required for your
next scheduled maintenance. However, your dealer may need additional time for the
preparation of the inspection as well as to accommodate the daily workshop schedule.

Please keep this letter with your Warranty Booklet and deliver it to any new owner, along with
the Owners Manual and maintenance guide.

Reimbursement of Your Prior Out of Pocket Expenses
If you have previously paid for a repair as a result in a timing belt failure, regardless of mileage,
Audi will reimburse you for the cost of repairs made to your vehicle, if you provide the
requisite proof of repair, described in the Notice, upon making a timely claim no later than
September 30, 2008. Additionally, Audi will reimburse your out-of-pocket expenses relating to
the timing belt failure, such as towing, alternative transportation, etc. See Notice for completed
details. All claims are being reviewed and processed by the court appointed claims
administrator:
Settlement Administrator
PO Box 1937
Faribault, MN 55021-7192

We regret any inconvenience this matter has caused or may cause in the future. We wish you
many more years of driving pleasure with your vehicle. Thank you for your continued loyalty!

Audi Product Quality and Technical Service