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New Holland Acquires Orenstein and Koppel

24 November 1998

New Holland Acquires Orenstein and Koppel

    AMSTERDAM, The Netherlands, Nov. 24 -- New Holland N.V.
today announced that the Company's Board of Directors has approved
an agreement to acquire 75.1% of the outstanding shares in O&K, Orenstein &
Koppel Aktiengesellschaft, the German manufacturer of hydraulic excavators and
construction equipment, from Fried. Krupp AG Hoesch-Krupp.  Terms of the
agreement were not disclosed.  The agreement is subject to satisfaction of
certain conditions, and approval by the European Commission.  The transaction
is expected to close by the end of 1998.  The remaining 24.9% of the
outstanding shares in O&K are publicly traded in Germany.
    "Orenstein & Koppel has established a strong position in the demanding
German market through its long tradition of sophisticated design and
exceptional quality," Umberto Quadrino, New Holland's Chief Executive Officer
said.  "The outstanding O&K product line will significantly enhance our
presence in North and South America.  This will complement Fiat-Hitachi's
success across the markets of Europe, Africa and the Middle East, where we
continue to invest in the complete renewal of the Fiat-Hitachi product line in
conjunction with our partner, Hitachi Construction Machinery Co., Ltd."
    New Holland Construction, the North American construction division
announced on November 4, 1998, will introduce a full line of O&K hydraulic
excavators in North America during the coming year.  O&K will also supply New
Holland Construction with hydrostatic wheel loaders.  In Latin America, New
Holland will sell O&K hydraulic excavators under the Fiatallis brand name in
selected markets.  In Europe, O&K will maintain its own distribution network
and will continue to market its product line under the O&K brand name.  New
Holland will strengthen the O&K organization with a rapid expansion of its
research and development activity.

    Founded in Berlin in 1876, O&K began building excavators in 1908, and
quickly established a reputation for innovation in excavator design and
manufacture.  The company designs and manufactures both crawler and wheeled
excavators.  O&K is the industry leader in grader technology, and is well
known for both large wheel loaders and hydrostatic wheel loaders.  The company
employs about 2,000 people across Europe and is expected to generate sales of
approximately DM800 million in 1998.

    New Holland is a world leader in the design and manufacture of a full line
of agricultural and construction equipment, and offers a rapidly expanding
line of financial services in many of its markets.  The Company and its joint
venture partners operate through a global network of over 6,000 dealers and
distributors.  Consolidated net revenues exceeded $6 billion in 1997.