Woodward Engine Control System to Advance Clark Lift Trucks

ROCKFORD, Ill.--July 24, 2003--Woodward Governor Company announced today the signing of an agreement with Clark Material Handling Company to supply Woodward MI-4 engine control systems for Clark 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 regulatory standards around the world including the 2004 EPA emission standards in the United States.

"The technical capabilities of the MI-4 system, combined with our global presence and support, offer an excellent solution for this market," said Tim Loyd, Woodward vice president. "Two months ago, we signed a similar agreement with Daewoo. These agreements give us a much stronger presence in Asia and demonstrate our ability to penetrate the forklift truck market," added Loyd.

The market for energy control technology products for gas and diesel engines of this size range is about $300 million. To accelerate entry in the small mobile industrial engine market, Woodward acquired Nolff's Carburetion, Inc., a manufacturer of natural gas and propane fuel systems for small industrial gas engines in 2002. At the same time, Woodward formed a joint venture with MotoTron, a subsidiary of Brunswick Corporation and a leader in high-performance electronic control systems for engines and vehicles.

Woodward also recently acquired Synchro-Start Products, Inc. to position the company as a leader in the growing small, high-speed diesel engine market.

Among the partners in the Clark agreement is Natural Gas Vehicle International (NGVI) in Korea, which will apply and certify the Woodward system on both General Motors and Mitsubishi engines for Clark.

About CLARK

An industry leader since it invented the first material handling truck in 1917, CLARK has built more than one million forklifts during its 85-year history. CLARK produces a full line of internal combustion and electric forklifts, narrow aisle forklifts, electric pallet jacks, stackers, and electric tuggers. CLARK's internal combustion products are built in its state of the art manufacturing facility in Changwon, Korea and distributed through a network of over 550 dealer locations worldwide.

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. Woodward is headquartered in Rockford, Illinois, and serves 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. 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 June 30, 2003, expected to be available by early August.