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Detroit Diesel Announces Declaration of Quarterly Dividend

9 March 1999

Detroit Diesel Announces Declaration of Quarterly Dividend

    DETROIT, March 9 -- Detroit Diesel Corporation
announced today that its Board of Directors has declared a quarterly dividend
of $0.125 per share on its outstanding common stock.  This dividend will be
paid on April 20, 1999 to shareholders of record as of March 19, 1999.
    Timothy D. Leuliette, Vice Chairman of Detroit Diesel, said, "The
initiation of a dividend for Detroit Diesel shareholders is an important step
in enhancing shareholder value.  We have taken this step as a result of the
earnings momentum and increased cash flow generated as an outcome of cost
reduction and profit improvement actions.  While there is still much work to
do, we believe the Company is ready to respond to attractive market
opportunities, as well as address typical market cyclicity.  The dividend also
will enhance the value of our common stock as a currency as we explore
external growth opportunities."
    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 (including power generation), and
automotive markets.  Detroit Diesel services these markets directly and
through a worldwide network of more than 2,800 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, 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.
    This news release may include projections, forecasts and other forward-
looking statements about the Company, the industry in which it competes and
the markets it serves.  The achievement of such projections is subject to
certain risks and uncertainties, fully detailed in the "Cautionary Statement
for purposes of 'Safe Harbor' under the Private Securities Reform Act of 1995"
in the Company's most recent Annual Report on Form 10-K, which is on file with
the Securities and Exchange Commission.