CNH Receives European Commission Approval for Divestitures.

Business Editors

RACINE, Wis.--(BUSINESS WIRE)--May 11, 2000

CNH Global (Nasdaq:CNH) announced it has received approval from the European Commission for the sale of selected agricultural equipment assets to ARGO S.p.A., the holding company of Landini S.p.A. The transaction includes a plant in Breganze, Italy, the Laverda line of non-hillside combines that are produced there, and a number of large square balers sold in Europe. CNH is divesting these assets in compliance with terms set by the European Commission's approval of the business merger of Case Corporation and New Holland.

Covered under the agreements with ARGO are New Holland's Laverda brand combine line (excluding hillside units) and Case IH's large square baler models produced in Europe, along with the Laverda and Fortschritt brands, respectively. In addition, ARGO has exclusive commercial rights for these Laverda combines in the European Economic Area (EEA). ARGO will have the option of distributing the Laverda combines through the New Holland dealer network, in addition to its own.

CNH also reached a supply agreement with ARGO to produce New Holland's hillside model combines at the Breganze plant. CNH retains the commercial rights to these models and will continue to sell them through New Holland dealers. The agreement with ARGO includes distribution rights to sell the hillside combines under the Laverda brand to its dealer network as well.

In addition, CNH has negotiated an agreement with ARGO for the continued supply of replacement parts for all of these products.

Last week, CNH announced an agreement to sell its interests in Hay & Forage Industries in Hesston, Kansas, pending approval by the U.S. Department of Justice. And in February, CNH completed the divestiture of the Austrian commercial distribution rights of two of its compact tractor models to Lindner Traktorenwerk GmbH, an Austrian agricultural machinery maker. The agreement was approved by the European Commission and has already been implemented.

Negotiations for the previously announced divestiture of other products and operations in North America and Europe are continuing.

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 has operations in 16 countries and 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, O&K and Steyr.