Woodward Acquires Nolff's and Launches Joint Venture with MotoTron; Woodward positioned to enter mobile industrial market

    ROCKFORD, Ill.--March 18, 2002--Woodward Governor Company announced a separate acquisition and joint venture, which are key to accelerating its strategy to develop and provide integrated controls for mobile industrial equipment. Woodward has acquired Nolff's, a manufacturer of natural gas and propane fuel systems for small industrial gas engines, and has formed a joint venture with MotoTron, a subsidiary of Brunswick Corp. . MotoTron is a leader in high-performance electronic control systems for engines and vehicles. Terms of the Nolff's agreement were not disclosed.
    Combined with Woodward's existing energy control technologies, these transactions strongly position Woodward in the mobile industrial engine market as a major supplier to engine manufacturers and packagers for lift trucks, aerial lift platforms, aircraft cargo tractors and other mobile equipment. The market for energy control technology products for gas and diesel engines of this size range is about $300 million.
    "With the acquisition of Nolff's and the MotoTron partnership, we can more deeply penetrate the small industrial gas and diesel engine markets. The number of engines produced for the mobile industrial market is ten times greater than for the stationary engine market, where Woodward already plays a role," said Tom Gendron, vice president and general manager of Woodward's Industrial Controls business, based in Fort Collins, Colorado. "Because emerging regulations are requiring further emission reductions, engine original equipment manufacturers (OEMs) and distributors need a stable partner, global customer support and complete system capabilities at the right price. Woodward is well positioned to meet these needs."
    Bob Nolff, president and chief executive officer of Nolff's, said, "The combined technologies and product offerings from the acquisition will accelerate Woodward's entry into the mobile gas and diesel engine markets and complement Woodward's experience in small industrial stationary applications. Nolff's product portfolio and extensive industry knowledge of the mobile industrial engine market will be invaluable."
    By partnering with MotoTron in a limited liability corporation, Woodward seeks to establish a competitive edge in electronic controls technology for small industrial engines. MotoTron has developed technically advanced, low-emission engine systems for the pleasure marine market for engine and propulsion control applications. This includes a vehicle systems architecture that is bringing sophisticated drive-by-wire technology to the marine market. The focus of the joint venture is to leverage one another's technology into the mobile equipment industry and recreational vehicle markets.
    Joining these high-performance control platforms with Woodward's established flexible software, integrated fuel systems and proven speed and air-fuel control algorithms will allow engine OEMs and vehicle packagers to meet tomorrow's emissions standards in the most cost-effective manner, while still upholding the highest standards for safety and system performance.
    "This is absolutely a win-win situation. The combined systems integration capabilities of Woodward and MotoTron will open new markets for the joint venture. Brunswick New Technologies looks forward to a very successful business relationship with Woodward," said T.J. Chung, vice president, strategic planning of Brunswick, and president of Brunswick New Technologies.

    About Nolff's

    Based in Romulus, Michigan, Nolff's is a privately held company with annual sales of $6.5 million. Nolff's is an emerging leader of gaseous fuel management systems and components that allow internal combustion engines to operate on clean gaseous fuels such as propane and natural gas.

    About MotoTron

    MotoTron, a subsidiary of Brunswick Corporation, designs and supplies sophisticated engine control and vehicle networking systems flexible enough to handle a wide range of engine and vehicle applications for both marine and non-marine use.

    About Brunswick

    Headquartered in Lake Forest, Illinois, Brunswick Corporation is a manufacturer and marketer of leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; Sea Ray, Bayliner, Maxum, Hatteras and Sealine pleasure boats; Baja high-performance boats; Boston Whaler and Trophy offshore fishing boats; Princecraft fishing, deck and pontoon boats; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment and consumer products; and Brunswick billiards tables.

    About Woodward

    Industrial Controls, a Woodward business based in Fort Collins, Colorado, is a world leader in energy control systems. The business provides innovative controls and fuel delivery systems used by engine, turbine, and other power equipment manufacturers worldwide to make their products cleaner and more efficient.
    Headquartered in Rockford, Illinois, Woodward has over 3,500 employees serving global markets from locations worldwide. Woodward designs, manufactures and services energy control systems and components for aircraft and industrial engines, turbines and other power equipment. The Company's products and services are used in the aerospace, power generation, oil and gas processing, and transportation markets, which include rail, marine and many light and heavy industrial applications.

    The statements in this release concerning the Company's future sales, earnings, business performance, and prospects reflect current expectations and are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from projections or any other forward-looking statement and we have no obligation to update our forward-looking statements. Factors that could affect performance and could cause actual results to differ materially from projections and forward-looking statements are described in Woodward's Annual Report and Form 10-K for the year ended September 30, 2001, and Form 10-Q for the quarterly period ended December 31, 2001.

    Woodward: www.woodward.com
    MotoTron: www.mototron.com
    Nolff's: www.nolffs.com