RDO Equipment Anticipates Losses for Fiscal 2001

    FARGO, N.D.--Jan. 19, 2001--RDO Equipment Co. announced that the results of the fourth quarter and the past year reflect a continuation of market trends reported in earlier periods. As a result of decreased demand and decreased inventory values for trucks and construction equipment, the Company has seen a downturn in income.
    However, RDO Equipment is responding to the market with quick and decisive actions. RDO today announced that it has signed a definitive agreement to sell its truck center business located in Roseville, Minnesota to Mack Trucks of Rochester, Inc., owned and operated by Robert W. Nuss. Terms were not disclosed. The transaction is scheduled to close at the end of this month. This transaction is the first step in RDO's plan to divest itself of its entire truck division except for its North Dakota stores that have been consistently profitable through the years. RDO will now narrow its focus to core business lines made possible by the new dealership agreements signed with John Deere Construction Company.
    Company officials stated that RDO expects to incur a net loss from operations of approximately $6.5 million for its fiscal quarter ending January 31, 2001, which includes losses on truck operations now being exited. In addition, one-time charges of approximately $7.5 million, including intangibles, for exiting certain truck operations are expected for the same period.