CNH Reaches Agreement for Sale of U.K. Tractor Plant to Landini S.p.A.; Agreement is Subject to Regulatory Approval.

Business Editors

RACINE, Wis.--(BUSINESS WIRE)--Dec. 13, 2000

CNH Global (N:CNH) said today that it has reached an agreement for the sale of its tractor manufacturing plant in Doncaster, England, to Landini S.p.A. The sale, which is in accordance with the European Commission's approval of the business merger of New Holland and Case Corporation in 1999, is subject to final approval by the European Commission.

In addition to the manufacturing facility, the agreement includes design, and manufacturing rights to the C, CX and MX-C tractor lines, as well as commercial rights in the European Economic Area (EEA). It also includes sale of the McCormick brand name to Landini. Landini intends to sell these tractors under the McCormick brand. The C, CX and MX-C tractors will continue to be produced at the Doncaster plant to be sold by Case IH outside the EEA under a supply agreement that CNH negotiated with Landini.

Through a manufacturing agreement with CNH, Landini will produce for Case IH the MX Maxxum mid-range horsepower tractors in the Doncaster plant, and in the Case IH brand, for Case IH dealers traditionally supplied from Doncaster. CNH will continue to produce MX Maxxum tractors for distribution in other markets around the world.

More details about this agreement will be provided following approval by the European Commission.

With strong global brands, CNH is a leader in the agricultural equipment, construction equipment and financial services industries and had combined 1999 revenues of approximately $11 billion. CNH sells its products in 160 markets through a network of more than 10,000 dealers and distributors. CNH products are sold under the following brands: Case, Case IH, Fermec, Fiatallis, Fiat-Hitachi, Link-Belt (earth-moving equipment), New Holland, New Holland Construction, O&K and Steyr.