This happened on my E300 last year. Changing FOB batteries did not work so I had to tow it to the dealer, leave it for two days till the new FOB came in and $265 later all good. Seems like over kill for a new key but thats what you may have to do.
Good luck.
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Treetops
06 E320 CDI 127K Miles
87 300TD 231K Miles
99 E300 269K Miles-Sold
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