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Detroit Diesel Announces Quarterly Dividend

11 June 1999

Detroit Diesel Announces Quarterly Dividend

    DETROIT, June 10 -- Detroit Diesel Corporation
announced today the declaration of a regular quarterly dividend of $0.125 per
share on its outstanding common stock.  This dividend will be paid on July 20,
1999 to shareholders of record as of June 21, 1999.
    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 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 manages businesses with annual revenues
exceeding $10 billion and employs more than 30,000 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.