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RDO Equipment Will Report Lower Results for Quarter

15 August 2000

Continuing Margin Pressures and Higher Expenses Reason for Loss; Court Hearing Directs Parties to Arbitration

    FARGO, N.D. -

    RDO Equipment Co. announced today that results for the quarter ended July 31, 2000 would be below current analysts' estimates and would likely result in a net loss of $1.2 to $1.8 million. The Company said that while revenues would show increases for the quarter and year-to-date, largely due to agricultural operations, those increases are not sufficient to offset continuing equipment and truck margin pressures and higher than anticipated expenses. The expenses are related to the consolidation and integration of the Company's acquired truck dealerships and are not expected to remain at current levels. The Company expects to report quarterly results during the week of August 21, 2000.

    The Company also announced that its action against John Deere Construction Equipment Company and related parties is proceeding. A hearing was held last week in Minnesota state court and, as a result, parties to the action have been ordered to proceed to arbitration.

    RDO Equipment Co. specializes in the distribution, sale, service, rental and finance of equipment and trucks to the agricultural, construction, manufacturing, transportation and warehousing industries, as well as to public service entities, government agencies and utilities. These operations, which consist of 54 retail stores in 9 states, include the largest network of John Deere construction and agricultural stores in North America, as well as Volvo and Mack truck centers.