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Detroit Diesel Announces Stock Repurchase Program

9 November 1999

Detroit Diesel Announces Stock Repurchase Program

    DETROIT, Nov. 8 -- Detroit Diesel Corporation
announced today that its Board of Directors has authorized the repurchase of
up to 10% of the total outstanding stock of the company.  Shares may be
acquired from time to time over a two-year period either through open market
purchases or negotiated transactions based upon market conditions.
    "We strongly believe in the continued growth potential of Detroit Diesel,
and therefore believe our stock remains an outstanding value," Roger S.
Penske, Chairman, said.  "This repurchase program will allow our shareholders
to most effectively realize the benefits of our ongoing success."  Mr. Penske
also stated that, "the company's strong operating cash flow and low debt-to-
capital ratio enable us to initiate this repurchase program while maintaining
the resources to respond to strategic investment 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;
automotive; and power generation 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., and Penske Capital Partners, L.L.C.  Penske
Corporation and its subsidiaries manage and operate businesses with annual
revenues exceeding $10 billion and employ more than 33,000 people around the
world.
    This news release may include projections, forecasts and other forward-
looking statements about Detroit Diesel, 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.
    Detroit Diesel's World Wide Web address is http://www.detroitdiesel.com