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Stockman and Leuliette Establish $2 Billion Equity Fund

11 October 1999

David A. Stockman and Timothy D. Leuliette Establish $2 Billion Equity Fund Focused on Midwest's Industrial Economy

    BLOOMFIELD HILLS, Mich., Oct. 11 -- David Stockton, a former
U.S. Congressman and United States Budget Director in the Reagan
Administration, and Timothy Leuliette, former president and COO of Penske
Corporation, announced today they will join together as Founding Partners to
form Heartland Industrial Partners.  The newly developed equity fund plans to
raise $2 billion in equity capital, which will be used to purchase and invest
in select industrial companies located throughout the Midwest region of the
country.  With additional capital from identified co-investors, and prudent
debt financing, the fund will oversee approximately $10 billion of investment
in solid industrial platform companies.
    Heartland Industrial Partners will become one of the largest funds of its
type in the world.  Leuliette will establish the firm's headquarters in
Bloomfield Hills, Michigan, while Stockman will open the fund's financial
office in New York City.
    Stockman, formerly of the Blackstone Group, was elected to Congress from
Michigan at the age of 29, and later joined the Reagan Administration in which
he served as the youngest Cabinet Officer in the 20th Century.  He was also
one of the principal architects of the Reagan Economic Revolution.
    Leuliette, 49, has been the president and chief operating officer of the
privately held Penske Corporation since November, 1996.  Penske Corporation,
focused on the transportation industry, has a number of investments in
manufacturing, service, leasing, retail and investment banking.  Before
joining Penske Corporation, Leuliette served as president and chief executive
officer of ITT Automotive and senior vice president of ITT Industries.  Prior
to ITT, Leuliette was a corporate vice president at Siemens AG where he served
as the first non-German board member in the company's 150-year history.
    Stockman said, "I am very pleased that Tim is joining me as a founding
partner of the firm.  His reputation for operating excellence and creating
shareholder value contributes to the unique positioning and attractiveness of
Heartland Industrial Partners.  Our firm will be built upon a proven
combination of strong operating acumen and successful private equity
experience.  Tim is ideally suited, with the network and knowledge he has
built up over the years, to add a dimension to Heartland that will give our
firm, and our investments, a competitive advantage."
    "There is a significant opportunity to build value by investing in
well-positioned industrial companies, whose talent, technology, assets and
market position afford them the opportunity to be a platform for industry
consolidation and value creation," stated Leuliette.  "The vision of Heartland
Industrial Partners as a long-term investor, combining strong financial and
operating acumen, creates a uniquely positioned fund that is consistent with
the corporate operating philosophy of industrial companies and their
customers.  My years working with Roger Penske have been extremely rewarding,
and I look forward to continuing my relationship with Roger and Penske
Corporation as a member of its Board of Directors."
    Roger Penske, Chairman of Penske Corporation stated, "This is a unique and
special opportunity for Tim, and we wish him well.  Furthermore, the ability
to attract significant capital and operating talent in a fund of this type to
the nation's heartland is long overdue.  I want to thank him for his many
contributions to Penske Corporation and look forward, as an investor in
Heartland Industrial Partners, to his continued success."