Woodward Engine Control System Helps Daewoo Lift Trucks Meet 2004 EPA Emission Standards

    ROCKFORD, Ill.--April 7, 2003--Woodward Governor Company announced today the signing of an agreement with Daewoo Heavy Industries & Machinery Ltd.'s Industrial Vehicle Division to supply Woodward MI-4 engine control systems for Daewoo propane-fueled lift trucks for the North American and Asian markets.
    The MI-4 control is a tightly integrated system of fuel, air, and ignition control modules used on small mobile industrial engines. The system is designed to help engine and engine equipment manufacturers cost-effectively meet the 2004 EPA emission standards in the United States and other regulatory standards around the world.
    "As tighter emission standards take effect on diesel and spark-ignited engines," said Tim Loyd, vice president, Woodward Industrial Controls, "we will continue working closely with Daewoo and other original equipment manufacturers to develop innovative, cost-effective engine control solutions that meet air quality standards."
    This agreement resulted directly from Woodward's accelerated efforts to meet the emissions control system needs of the mobile industrial engine market. The market for energy control technology products for gas and diesel engines of this size range is about $300 million. To focus on that market, Woodward acquired Nolff's Carburetion, Inc., a manufacturer of natural gas and propane fuel systems for small industrial gas engines, and formed a joint venture with MotoTron, a subsidiary of Brunswick Corporation and a leader in high-performance electronic control systems for engines and vehicles.
    Among the partners in the Daewoo agreement is Natural Gas Vehicle International (NGVI) in Korea, who will apply and certify the Woodward system on both General Motors and Mitsubishi engines for Daewoo. NGVI will also apply a simpler Woodward engine control system for engines sold into non-emissions controlled markets.

    About Daewoo

    Founded as Choson Machine Works in 1937, Daewoo Heavy Industries & Machinery Ltd. (DHIM) is a leading force in the Korean machinery industry and is its largest machinery manufacturer. Since DHIM began the manufacturing lift trucks in 1967, its Industrial Vehicles Division has achieved remarkable progress, expanding its areas of business to include skid steer loaders and telescopic handlers. DHIM has grown into Korea's largest industrial vehicle manufacturer having production facilities with an annual production capacity of 30,000 industrial vehicles.

    About Woodward

    Woodward is the world's largest independent designer and manufacturer of energy control solutions for aircraft and industrial engines, turbines and power equipment. The company's innovative controls and fuel delivery systems help manufacturers worldwide operate cleaner and more efficient power equipment. Woodward'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. Headquartered in Rockford, Illinois, Woodward has over 3,200 employees serving global markets from locations worldwide. Visit our Web site at www.woodward.com.

    The statements in this release concerning the company's future sales, earnings, business performance, prospects, and the economy in general reflect current expectations and are forward-looking statements that involve risks and uncertainties. Such risks include, but are not limited to the ability of customers to receive certification for engines to meet emission standards, and the ability to successfully design and market products under the joint venture. 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, 2002, and Form 10-Q for the quarterly period ended March 31, 2003, expected to be available by mid-May.