Valley Detroit Diesel Allison Makes a New and Increased Purchase Offer for Westerbeke Corp.

    CITY OF INDUSTRY, Calif.--June 12, 2003--Valley Detroit Diesel Allison (VDDA), a leading distributor, manufacturer and servicer of marine engines & generator sets, diesel engines, commercial duty transmissions and power generation equipment based in City of Industry, has made a new and increased offer to acquire the business of Westerbeke Corp. , for a total purchase price of $14,335,053.
    VDDA's offer was made to the special committee of the board of directors of Westerbeke Corp. this morning. The total purchase price of $14,335,053 includes the assumption of all outstanding liabilities approximating $7,200,000 and cash of $7,135,053 in exchange for all the assets of WTBK.
    The new and increased offer is $490,963 more than the price that VDDA offered for WTBK on May 23, 2003 and provides a higher cash price to WTBK shareholders of $1,270,626 more than the current pending offer by Westerbeke Acquisition Corp.
    WTBK shareholders would receive approximately $3.65 per share based on WTBK's estimated 1,954,809 outstanding shares as of April 26, 2003. VDDA again stated that its cash portion of the purchase price would be revised upward upon receiving John Westerbeke's full cooperation with its purchase of WTBK.
    VDDA's offer by its terms will expire at 3 p.m. (EDT), 12 p.m. (PDT) on June 16, 2003. The special committee of the board of directors of Westerbeke Corp. rejected VDDA's prior offer of $3.45 per share in favor of the pending offer by Westerbeke Acquisition Corp. to acquire WTBK's business for $3 per share.
    VDDA's new and increased offer of $3.65 per share represents a cash price premium approximately 21.67% higher than the pending offer by Westerbeke Acquisition Corp.