Deere Announces Further Share Repurchase, Boosts Dividend Over 25%

MOLINE, Ill., Nov. 30, 2005 -- The Deere & Company board of directors today authorized the repurchase of up to 26 million additional shares of common stock and raised the quarterly dividend rate by more than 25 percent, to 39 cents a share. "These actions support our goals for creating superior long-term value for investors," said Robert W. Lane, chairman and chief executive officer. "They reflect our confidence in Deere's future direction and its ability to produce strong levels of cash flow over time. In addition, the company remains committed to funding the research and capital programs necessary to meet our future growth objectives." The repurchase authorization positions Deere for an initial target of 215 million shares outstanding, according to Lane.

Deere's announcement is the latest in a series of steps to return cash to shareholders in a manner that optimizes long-term value. Since early 2004, the company has repurchased $1.1 billion of stock under previous authorizations and has now raised the dividend rate on three occasions by a combined 77 percent. Under the program announced today, repurchases of Deere stock will be made from time to time, at the company's discretion, in the open market and through privately negotiated transactions. Fully diluted shares outstanding totaled 239 million at the end of October. The 39-cent dividend is payable February 1, 2006, to stockholders of record on December 31, 2005.

Safe Harbor Statement

This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including projections regarding future dividends, share repurchases and retirement benefit contributions, are based on current expectations and are subject to uncertainty and changes in circumstances. More detailed information about risks and uncertainties is contained in Deere & Company filings with the Securities and Exchange Commission.