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

    CITY OF INDUSTRY, Calif.--June 20, 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 its third new and increased offer to acquire the business of Westerbeke Corp. , for a total purchase price of $14,432,793.
    VDDA's offer was made to the special committee of the board of directors of Westerbeke Corp. early this morning. The total purchase price of $14,432,793 includes the assumption of all outstanding liabilities approximating $7,200,000 and cash of $7,232,793 in exchange for all the assets of WTBK. The new and increased offer is $97,740 and $488,702 more than the price that VDDA offered for WTBK on June 11, 2003 and May 23, 2003, respectively, and provides a higher cash price of $1,368,366 to WTBK shareholders than the current pending offer by Westerbeke Acquisition Corp.
    WTBK shareholders would receive an approximate $3.70 per share based on WTBK's estimated 1,954,809 outstanding shares as of April 26, 2003. VDDA again restated that its cash portion of the purchase price would have been higher had John Westerbeke's full cooperation been forthcoming.
    VDDA's offer by its terms will expire at 3 p.m. (EDT), 12 p.m. (PDT) on July 3, 2003. VDDA's prior offer of $3.65 per share to the special committee of the board of directors of Westerbeke Corp. was rejected on Monday, June 16, 2003, in a letter signed by the committee's Chairman, James W. Storey, in favor of the pending offer by Westerbeke Acquisition Corp. to acquire WTBK's business for $3.00 per share. VDDA's new and increased offer of $3.70 per share represents a cash price premium approximately 23.33% higher than the pending offer by Westerbeke Acquisition Corp.