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Detroit Diesel Reports Preliminary First Quarter Results

19 April 2000

Detroit Diesel Reports Preliminary First Quarter Results

    DETROIT, April 19 In his address at the 2000 Annual
Meeting of Stockholders of Detroit Diesel Corporation (NYSE: DDC), Roger
Penske, Chairman, announced preliminary first quarter 2000 results.
    The chairman reported first quarter revenues of approximately $536
million, with total engine sales of 36,400 units.  Gross margin for the
quarter was 24.9%, an increase of 1.4 percentage points compared to first
quarter 1999.  Net income was approximately $10.1 million or $0.43 per common
share, for the period.
    Penske cited increased sales of Series 2000 and Series 4000 engines as
well as stronger service parts and remanufactured products sales as partially
offsetting a 14% decline in Series 60 on-highway engine shipments.  The
decline in Series 60 shipments is attributable to the expected lower
production of North American Class 8 trucks.
    Detroit Diesel held its annual meeting for stockholders at its world
headquarters in Detroit, Michigan.  The company will release its final results
for the first quarter on April 27, 2000.
    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 11,000 horsepower for the on-highway, off-road and
automotive markets.  Detroit Diesel services these markets directly and
through a worldwide network of more than 2,700 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 34,000 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.