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Detroit Diesel Announces Regular Quarterly Dividend

1 December 1999

Detroit Diesel Announces Regular Quarterly Dividend

    DETROIT, Dec. 1 -- 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
January 20, 2000 to shareholders of record as of December 20, 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;
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.