Detroit Diesel Reports Record Earnings

Detroit Diesel Corp. announced fourth quarter 1998 revenues of $563 million and record fourth quarter earnings of $10.3 million. These figures compare with fourth quarter 1997 revenues of $563 million and earnings of $7.9 million. The fourth quarter 1998 results represent a 30% increase in earnings versus the previous fourth quarter on consistent revenues.

For the year ended December 31, 1998, Detroit Diesel reported total revenues of $2.3 billion, an increase of 4% over full year 1997 revenues.

Earnings, before a special charge, rose 35% to $40.5 million or $1.64 per common share. After the special charge related to the previously announced agreements with the Environmental Protection Agency and the California Air Resources Board, the Company's full year 1998 earnings were $28.0 million.

Total fourth quarter 1998 engine shipments were 37,500 units compared to 39,800 units in fourth quarter 1997, and total 1998 engine shipments were 156,000, a decline of 4% compared to full year 1997 shipments. Strong increases in the Company's Series 60 engine shipments, for a number of

arkets, were offset by anticipated reductions in two-cycle and automotive engine deliveries.