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Detroit Diesel Corporation Tender Offer Extended

26 August 1997

Detroit Diesel Corporation Tender Offer Extended

    DETROIT, Aug. 26 -- Detroit Diesel Corporation
today announced that it has extended its previously announced tender offer to
acquire 13,842,619 shares of common stock of Outboard Marine Corporation
until 12 midnight, September 3, 1997, in accordance with the terms
of the merger agreement between DDC and OMC.  The tender offer was scheduled
to expire on August 25, 1997.
    Detroit Diesel Corporation said that approximately 536,592 shares of OMC
common stock had been validly tendered and not withdrawn as of the close of
business on August 24, 1997.  Except for the extension of the scheduled
expiration date of the tender offer, all terms and conditions of the
transaction remain the same.  Further details are available in the tender
offer documents on file with the Securities and Exchange Commission.
    Detroit Diesel Corporation is engaged in the design, manufacture, sale and
service of heavy-duty diesel and alternative fuel engines, automotive diesel
engines, and engine-related products; and provides financing through Detroit
Diesel Capital Corporation.  The Company offers a complete line of diesel
engines from ten to 10,000 horsepower for the on-highway truck; construction,
mining and industrial; automotive; coach and bus; marine; power generation;
and military markets.  Detroit Diesel services these markets directly and
through a worldwide network of more than 2,500 authorized distributors and
dealers.  DDC is a QS-9000 certified company.
    Detroit Diesel's major shareholder is Penske Corporation, a closely-held,
diversified transportation services company whose operations include Penske
Truck Leasing Company, Diesel Technology Company, AG Kuhnle, Kopp and Kausch,
Penske Automotive Group, Inc., Penske Auto Centers, Inc., Penske Motorsports,
Inc., and Penske Capital Partners.  The Penske group of businesses has annual
revenues exceeding $6 billion and employs more than 25,000 people around the
world.
     Detroit Diesel's World Wide Web address is http://www.detroitdiesel.com.

SOURCE  Detroit Diesel Corporation