Case Corporation to acquire Fermec Holdings Ltd.; Case strengthens its position in European construction equipment business.

RACINE, Wis.--(BUSINESS WIRE)--Oct. 7, 1996--Case Corporation (NYSE:CSE) said today that it has reached an agreement to purchase all of the outstanding shares of Fermec Holdings Limited, a construction equipment manufacturer based in the United Kingdom. Terms of the agreement were not disclosed.

"This is another strategic step we are taking to continue the profitable growth of our business," said Jean-Pierre Rosso, Case chairman, president and chief executive officer. "Fermec is an excellent fit with our global construction equipment business. It strengthens our product offering in the fast-growing light application sector and expands our market position in Europe and Asia."

Fermec's 1995 revenues were approximately US$155 million (99 million British pounds), up 70 percent since 1993. Its products include loader/backhoes, mini-excavators, skid steers and industrial tractors. The company employs approximately 580 people, most of whom are in Manchester, U.K., where the company has offices, a manufacturing plant and a parts depot. It also has a parts depot in France. Fermec's products are sold in more than 90 markets worldwide. "This acquisition underscores Case's commitment to the European construction equipment business," said Leopold Plattner, vice president and managing director, Case Europe. "Fermec's products and market positions complement our business by increasing our loader/backhoe line, adding a line of mini-excavators, and expanding our overall technology and capability, all of which enable us to better meet our customers' needs."

The acquisition of Fermec is another action Case has taken as part of its operating strategy to grow sales, while simultaneously reducing costs. Fermec is the fourth acquisition Case has made this year. In January, the company completed the acquisition of Concord Inc., the leading supplier of air drills in the U.S.; in June, Case acquired Australian-based Austoft Holdings Limited, the world's largest manufacturer of sugar-cane harvesting equipment; and, in August, the company purchased controlling interest in Steyr Landmaschinentechnik AG, an Austrian tractor manufacturer.

Case Corporation, with net sales of nearly $5 billion in 1995, 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 4,100 independent dealers and distributors in more than 150 countries. Case Credit Corporation, a wholly owned subsidiary of the company, services a portfolio of $4 billion of agricultural and construction equipment financing and leasing contracts.

CONTACT: Case Corporation, Racine

William B. Masterson, 414/636-5793