Internal and External engine oil & coolant leaks can develop from the head gasket and/or timing cover gasket; these leaks should be repaired before the engine oil and coolant intermix which can result in severe engine damage.Google+
Car Problem Reports
Mercedes-Benz E320 Repair Leaks From Head Gasket/Timing Cover Gasket Before Oil and Coolant Intermix
Mercedes-Benz E320 Problem
Average Mileage: 152,000 mi (113,000 mi - 195,000 mi)
i have oil leak mercedes benz e320 1997, probably head gasket or timing cover
yes my old e-320 leaks oil not happy about it.at all got the car new allways had the best care never by another mercedes/oh its a 1994
Visitor, 1994 Mercedes-Benz E320, 113,000 mi
I had coolant/oil leak while car was under warranty. At 100,000 miles it developed a major external oil leak.
Repair is a new head and timing chain cover gasket. While the parts are not too expensive ($75.00) the time to remove and replace the head is about 14+ hrs. You will need special tools for some operations. If you are not a mechanic, don't even try it. This is common problem with the 6 cyl engine and oil leaks occour at the right side of the timing chain cover and the head gasket.