Detroit Diesel Remanufacturing Breaks Ground on New $8 Million Facility in Ohio

CAMBRIDGE, Ohio, Jan. 26, 2005 -- Detroit Diesel Remanufacturing Corporation today hosted a ceremonial groundbreaking for a new $8 million facility. The new building, an addition to the company's Detroit Diesel Remanufacturing-East complex here, will support the company's continued focus on delivering high-quality remanufactured engines and engine products for both the automotive and on highway commercial truck markets.

Ohio-area government dignitaries and President of Detroit Diesel Remanufacturing Corporation Jim Morrow delivered keynote addresses at the groundbreaking celebration, which was attended by state and local government officials and dozens of Detroit Diesel employees.

"This new facility marks a milestone for Detroit Diesel Remanufacturing and our continued leadership role in providing world-class remanufactured products for the North American automotive and commercial truck market," said Morrow. "Our Reman business is a core business for Detroit Diesel. Behind the Reliabilt(R) name, we intend to continue our rapid growth in the aftermarket remanufacturing business."

Reliabilt(R) is the brand name for Detroit Diesel Remanufacturing, an automotive and commercial truck engine product from Detroit Diesel Corporation. Through its five remanufacturing centers, Detroit Diesel Remanufacturing restores engines and other engine related products back to original factory condition.

The new 134,000-square foot manufacturing and distribution facility will be located on a 20-acre site in close proximity to the current Detroit Diesel Remanufacturing - East Center. Remanufacturing work will continue in both facilities, with some operations transferring from the current DDR-E facility to the new site. "Cleaning and core processing operations will be transferred to the new complex and will enable us to support business partners like Freightliner and Mopar," said Morrow.

The new Detroit Diesel Remanufacturing complex will be located within the D.O. Hall Industrial Park and is anticipated for completion in June 2005. The new operations will add an additional 94 jobs once it is fully operational and will provide a platform for future growth.

"This is a strategic investment for Detroit Diesel based on the overall growth opportunities and strong performance of Detroit Diesel Remanufacturing -- East in recent years," added Morrow. "We are also grateful to Guernsey County for supporting our strategy to easily serve the needs of our customers in the Eastern United States and places beyond. We have very strong ties to the community and continue to rely on the dedication and commitment of our Cambridge employees."

Detroit Diesel Remanufacturing-East has been located in Guernsey County's I-70/77 Business Park since 1976. Serving all points east of the Mississippi River, it produces 70 percent of the remanufactured Detroit Diesel engines nationwide.

Detroit Diesel Corporation, a subsidiary of DaimlerChrysler AG, designs, manufactures, sells and services a complete line of medium and heavy duty diesel and alternative fuel engines for the commercial vehicle market. Detroit Diesel services its customers through a worldwide network of more than 2,700 authorized distributor and dealer locations.