CSE 6 5R2- (VES

Volkswagen of America, Inc.
3800 Hamlin Road

Auburn Hills, Mi 48326

Tel. 1 800 893 5298

July 2008

Subject: Warranty Extension for 1999 Model Year Passat Equipped with
1.8L Turbo Engine

Dear Volkswagen Owner or Lessee,

We are writing to inform you that Volkswagen is providing revised maintenance
instructions and a warranty extension covering certain timing belt tensioner
system related repairs on 1999 Volkswagen Passat 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 Volkswagen 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 Wiil Volkswagen Do?

Volkswagen is implementing an extended warranty for timing belt related engine
damage for 1999 Volkswagen Passat 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.

Volkswagen 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
the mileage specified in the revised maintenance requirements.

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
Volkswagen’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. (Volkswagen communicated these
requirements to its dealers and made them available to the aftermarket repair
industry late in 1998. However, the maintenance booklet included with your
vehicle’s owner’s literature did not refer to the required inspections.)

What We Would Like You To Do

Please keep this letter with your Warranty Booklet and deliver it to any new
owner, along with the Owners Manual and maintenance guide. The new
maintenance guide insert can assist independent repair facilities in performing
required maintenance in a proper manner.

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, Volkswagen 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, Volkswagen 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!

Sincerely,

Volkswagen Service & Quality