Detroit Diesel Corporation Tender Offer Extended

9 September 1997
Detroit Diesel Corporation Tender Offer Extended

    DETROIT, Sept. 9 -- Detroit Diesel Corporation
today announced it has agreed with Outboard Marine Corporation to
extend its previously announced tender offer to acquire 13,842,619 shares of
common stock of OMC until 5 p.m. E.S.T., on September 15, 1997.  The tender
offer was scheduled to expire on September 8, 1997.
    In addition, DDC and OMC agreed to modify their Agreement and Plan of
Merger dated July 8, 1997 to provide that DDC will waive its contingent right
to a $15.7 million liquidated damages fee and OMC will immediately pay DDC
$7.5 million in consideration of the waiver and extension and to cover
transaction expenses to date.
    Timothy D. Leuliette, Vice Chairman of Detroit Diesel Corporation, said,
"Our original offer was approved by the OMC Board following a comprehensive
sale and bidding process and a thorough review of OMC.  The scheduled closing
has been significantly delayed," continued Mr. Leuliette, "but we believe that
our combined cash and DDC stock package at $16 per share remains a fair price
for the company.  At the same time, given the business environment in which
our companies operate, we are concerned that further delays will cause more
damage to the operating and financial performance of OMC, and therefore, our
offer cannot be held open indefinitely."
    Detroit Diesel Corporation said that 397,724 shares of OMC common stock
had been validly tendered and not withdrawn as of the close of business on
September 8, 1997.  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 28,000 people around the
world.
     Detroit Diesel's World Wide Web address is http://www.detroitdiesel.com.

SOURCE  Detroit Diesel Corporation