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DEERE & COMPANY AND AMERICAN BAILEY SIGN LETTER OF INTENT

 MOLINE, Ill., May 14 /PRNewswire/ -- Deere & Company (NYSE: DE) and American Bailey Corp. of Stamford, Conn., today jointly announced the signing of a letter of intent for the potential acquisition of the John Deere Foundry in Silvis, Ill., by an affiliate of American Bailey. Terms of the transaction were not disclosed.
 Douglas G. Bailey, president of American Bailey, said, "Today's announcement marks the first step in a several-month process which, if successfully concluded, will result in the purchase of the John Deere Foundry facility. We are very pleased to have the opportunity to acquire such a large, modern operation and are confident that a world- class foundry can be developed there during the next few years."
 Mr. Bailey noted that the domestic foundry industry continues to be extremely competitive, and for this foundry to become economically viable there
must be effective partnerships formed with a number of involved parties. "We have initiated discussions with local and state government officials to explore the availability of financing and tax incentives and other assistance programs," Bailey said. "We are also working closely with the area utility to develop an attractive rate schedule and will be formulating a competitive wage and benefits package, comparable to that of other independent foundries, to offer prospective employees. Creating a highly cost competitive foundry is our number one goal."
 "Deere & Company is pleased by this signing of the letter of intent with American Bailey," said John K. Lawson, senior vice president of Deere & Company. "We wish them every success as they move toward the establishment of foundry operations here."
 Deere & Company announced in September 1991 that it would gradually phase out foundry operations at the Silvis facility. Deere's last pour at the foundry was in January, 1993.
 American Bailey entered the foundry industry in 1990 with the acquisition of the Golden Operations of the CWC Castings Division of Textron Inc. Now known as Golden Casting Corp., Golden is a gray iron foundry located in Columbus, Ind., and is a leading independent producer of diesel engine blocks and heads, primarily serving the heavy-duty truck engine market.
 Noting that the Deere facility had previously been operated as a ductile foundry, Bailey indicated that "Current plans are to start-up the facility as a gray iron foundry with emphasis on diesel engine blocks and heads. Due to its molding line characteristics, including high-speed capabilities, this foundry can best serve the medium-duty engine market as well as other markets not requiring the larger castings that can be supplied from Golden."
 American Bailey Corp. is a privately held corporation organized to acquire, develop and operate businesses, primarily in the manufacturing and energy sectors. In addition to its activities in the foundry industry, American Bailey is affiliated with Great Northern Properties Limited Partnership, which owns approximately 20 billion tons of low- sulfur coal reserves, principally in Montana and North Dakota. As the largest private owner of U.S. coal reserves, Great Northern Properties is primarily a lessor of these resources to coal mining companies.
 -0- 5/14/93
 /CONTACT: Robert J. Combs of Deere & Company, 309-765-5014; or Nolan R. Schwartz of American Bailey, 203-348-8700/
 (DE)


CO: Deere & Company; American Bailey Corp. ST: Illinois, Connecticut IN: SU: TNM

WB -- NY020 -- 8545 05/14/93 10:11 EDT
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Date:May 14, 1993
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