Detroit Diesel To Introduce New Technology Engines by October 2002

    DETROIT, June 7 Detroit Diesel Corporation (DDC) confirmed
today that the U.S. Environmental Protection Agency (EPA) and the Department
of Justice (DOJ) notified DDC and other engine makers that entered into 1998
consent decrees, that the government will not now agree to change the consent
decree schedule to meet more stringent emissions standards by October 2002,
despite concerns raised by many manufacturers regarding the results of strict
adherence to that timetable.

    Tim Tindall, Director of Emissions Engineering for DDC, said, "In ongoing
discussions with EPA and DOJ, and as recently as March, DDC and other consent
decree manufacturers expressed concerns to the government regarding the
practicality of the October 2002 date in capturing the intended environmental
benefit of the consent decrees.  The main concern was the desire for
additional testing to ensure the commercial acceptability of the new lower
emitting engines.  Our discussions with the government have been about
alternative methods to capture the full environmental benefits anticipated
while still allowing flexibility to assure market acceptance."

    DDC has always had plans in place to introduce engines with new emissions
technologies by October 2002, and already has begun the installation of new
engine manufacturing facilities that will cost in excess of $136 million.  The
new technologies used have been designed to reduce emissions as well as to
meet customer expectations.  DDC's low emission technology employs cooled
exhaust gas recirculation to reduce oxides of nitrogen and hydrocarbon
emissions.  DDC was the first diesel engine manufacturer to introduce cooled
EGR technology to the heavy-duty market with its Series 50 urban bus engine in
2000.  Significant additional development has been completed to date on
providing this technology to the over the road truck market.  Further
development and testing is continuing on both the engine and vehicle
integration in anticipation of October 2002.