Case Corporation and Russian Government Agree On Terms for Long-Term Development Partnership for Agricultural Sector.

RACINE, Wis.--(BUSINESS WIRE)--March 22, 1999--Case Corporation (NYSE:CSE) said today that it has agreed on terms during a weekend meeting for a wide-ranging partnership with Russia to help develop that country's agricultural sector. The terms encompass the supply and manufacture of equipment as well as for supporting services. These terms were outlined during a meeting on Saturday, March 20, led by Gennady Kulik, Deputy Chairman of the Government of the Russian Federation, and Steven G. Lamb, president and chief operating officer of Case, at the company's Technology Center near Chicago, Illinois.

"We look forward to assisting Russia with the development of a highly efficient, self-funding agricultural sector that assures a continuous supply of equipment and expertise to Russian farmers," Lamb said. "Our product range, technical knowledge and breadth of experience in the Commonwealth of Independent States (CIS) makes us a natural partner for Russia. Our products are suited for the large farm sizes in the region, and we have more than 5,000 Case units in operation throughout the CIS, along with a network of distributors, sales representatives and service centers.

"Since 1994, we have made considerable investments to bring to farmers around the world new equipment and new technology that are helping to change the face of farming. Our equipment in this region has been very productive, and we intend to build upon our vast experience in the CIS. We are committed to furthering the productivity and success of farming worldwide, thereby increasing our position as a global supplier of large-scale production agricultural equipment and services," Lamb added.

Since becoming active in the CIS in 1994, Case has sold more $440 million in equipment there, with sales in Uzbekistan, Turkmenistan, Ukraine, Kazakhstan and Belarus, in addition to Russia.

Today, Case has five distributors and sales representatives in Russia for the sale of agricultural equipment. In 1998, the company completed the sale of 200 combines to the Bashkortastan and Saratov regions of Russia for the past year's harvest. The terms agreed to today outlines ongoing discussions between Case and the Russian Ministry of Agriculture and Food and extends beyond equipment sales. Case intends to upgrade an existing network of "machine technological stations" that will be supported by a complete parts and service system. In addition, the company will work towards creating several potential joint ventures in Russia for the local manufacture of farm equipment and to provide services for the Russian agricultural sector.

One of the key objectives of the partnership is to create an entrepreneurial-style agricultural sector in Russia that can be sustained in the future and serve as a catalyst for additional investment. To date, Case has had specific discussions with the Ministry of Agriculture and Food regarding the establishment of joint ventures in the Saratov and Bashkortostan regions of Russia to manufacture agricultural machinery.

Case Corporation is a leading worldwide designer, manufacturer and distributor of agricultural and construction equipment and offers a broad array of financial products and services. Headquartered in Racine, Wisconsin, Case had 1998 revenues of $6.1 billion and sells its products in 150 countries through a network of approximately 4,900 independent dealers.