Case Corporation Reaches Agreements on Acquisitions to Expand Harvesting Equipment Line in Europe.

RACINE, Wis.--(BUSINESS WIRE)--Oct. 6, 1997--

Case Continues With Aggressive Growth Initiatives

Case Corporation (NYSE:CSE) announced today that it has reached agreements to acquire a German company and the assets of two others, which will give Case a broad range of conventional and rotary combines in Europe and significantly expand its line of harvesting equipment there. The acquisitions will include all of the outstanding shares of Fortschritt Erntemaschinen GmbH (Fortschritt) and certain assets of Karl Mengele & Svhne, Maschinenfabriken GmbH (Mengele) and MDW Mahdrescherwerke GmbH (MDW), including intellectual property, production and distribution rights related to self-propelled forage harvesters and combines, respectively. Terms of the agreements were not disclosed.

"These are strategic acquisitions that expand our agricultural equipment product line in Europe and enable us to meet our customers' needs with an integrated product offering. These products have built strong positions in Germany, and we can significantly increase their sales potential by marketing them through our dealer and distributor network throughout Europe and other parts of the world," said Jean-Pierre Rosso, Case chairman and chief executive officer. "In addition, we are consolidating the manufacture of these products at one facility to efficiently structure the operations to build value for the company and our shareholders."

Fortschritt manufactures hay and forage equipment, including self-propelled forage harvesters, large square balers and windrowers, that are sold throughout Europe. The MDW combine line, together with Case's existing Axial-Flow combines, will give Case a broad range of both conventional and rotary combines in Europe. The agreement with MDW includes rights to its new 425-horsepower Arcus combine, which is designed for large-scale production agriculture. Sales of the Fortschritt, Mengele and MDW products included in the agreements were approximately $110 million in 1996.

Case will make the Fortschritt facility in Neustadt, Germany, its center for European harvesting equipment. It will transfer to Neustadt assembly of the MDW combines and production of the Mengele line of self-propelled forage harvesters, with MDW supplying Case with components for combines. Currently in Europe, Case manufactures low- and mid-horsepower range tractors and, through another recent acquisition, agricultural sprayers.

Acquisitions are an important element of Case's operating strategy that is designed to grow earnings through continuous cost reduction together with top-line revenue growth. Including today's announcement, Case will have made 11 acquisitions since January 1996. Additionally, Case has introduced a number of new products and expanded into new geographic markets to grow sales.

"We are committed to meeting our customers' needs with a full line of Case agricultural equipment," said Leopold Plattner, Case Europe president. "These acquisitions, together with our ongoing product development activities, are enabling us to expand our product offering and market presence throughout Western Europe, Eastern Europe, the former Soviet Union, as well as Africa and the Middle East."

Case is building a full line of agricultural equipment products in Europe, just as it has in North America and other parts of the world. An integrated product line will become increasingly important as the company expands its Advanced Farming Systems line of components for site-specific farming. These acquisitions follow two other acquisitions made by Case for its European agricultural business in the last 14 months. In August 1996, Case acquired Steyr Landmaschinentechnik GmbH, an Austrian-based manufacturer of specialized tractors. In June 1997, Case acquired Gem Sprayers Limited, a leading maker of agricultural sprayers in the U.K.

Case Corporation, with revenues of $5.4 billion in 1996, is headquartered in Racine, Wisconsin, and is a leading worldwide designer, manufacturer and distributor of agricultural and construction equipment. The company's products are sold through a network of approximately 4,900 independent dealers and distributors in more than 150 countries. Case Credit Corporation, a wholly owned subsidiary of the company, services a portfolio of $4.8 billion of agricultural and construction equipment financing and leasing contracts.

CONTACT: Case Corporation

William B. Masterson, 414/636-5793

Kate Philipps, 33-1-49-90-23-41