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Detroit Diesel and Volvo Penta Agree to Conclude Collaboration

8 February 1999

Detroit Diesel Corporation and Volvo Penta of the Americas, Inc. Agree to Conclude North American Collaboration

    DETROIT and CHESAPEAKE, Va., Feb. 5 -- Detroit Diesel
Corporation (DDC) and Volvo Penta of the Americas, Inc. (VPA)
announced today their mutual agreement to conclude a successful four year
collaboration which provided Detroit Diesel distribution rights for Compact
and 6-16 liter inboard diesel engines and parts in North America.  Terms of
the Agreement were not disclosed, though are not considered to have a material
effect to DDC's financial results.
    "Detroit Diesel is proud of our success selling Volvo Penta engines in
North America in the past several years," said Detroit Diesel Vice President
of Marine Sales, Scott Vaughan.  "Over that time period, both companies have
met new challenges in the markets they serve.  We feel the timing is now right
for Detroit Diesel to reallocate resources toward developing new products and
programs to provide marine solutions to our global customers."
    Volvo Penta of the Americas, Inc. President, Clint Moore, said, "Volvo
Penta and Detroit Diesel have enjoyed success during their distribution
agreement.  This transition is in keeping with Volvo Penta's re-establishment
of a more direct distribution structure in North America and is consistent
with our business strategy worldwide."
    Effective, February 1, 1999, Compact diesel inboard engines from 10-102
horsepower as well as 6-16 liter diesel inboard engines from 318-770
horsepower will be transitioned back to VPA for engine, parts, sales,
distribution, service and warranty.
    Volvo Penta of the Americas, Inc. is a wholly-owned subsidiary of AB Volvo
Penta, a leading supplier of marine propulsion systems for pleasure and
commercial applications as well as heavy-duty diesel engines for industrial
applications.  Volvo and Volvo Penta are registered trademarks of AB Volvo
, which has as its core business, trucks, bus, construction,
marine and aerospace activities.
    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.  The Company offers a complete line of
diesel engines from 22 to 10,000 horsepower for the on-highway; off-road;
automotive; and power generation markets.  Detroit Diesel services these
markets directly through a worldwide network of more than 2,800 authorized
distributor and dealer locations.  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, Penske Automotive Group,
Inc., Penske Auto Centers, Inc., Penske Motorsports, Inc., and Penske Capital
Partners, L.L.C.  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.