The two companies announced earlier this month that they had reached a sales agreement, pending Department of Justice approval. CNH agreed to sell its interest in HFI in compliance with terms set by Department of Justice's approval of the business merger of Case Corporation and New Holland in November 1999. Case and AGCO had been joint venture partners in HFI since 1991.

AGCO will continue to provide Case IH-branded hay tool products to the Case IH distribution network until March 31, 2001. In addition, the companies have agreed to a long-term arrangement for the supply of parts for Case IH products produced at the HFI plant. CNH is currently developing a separate Case IH line of hay and forage products.

CNH is successfully working toward completion of all regulatory divestiture requirements in North America and Europe. A sales agreement with ARGO S.p.A., the holding company of Landini S.p.A., for a plant in Breganze, Italy, the Laverda line of non-hillside combines that are produced there, and a number of large square balers sold in Europe, was approved by the European Commission last week. In February, CNH completed the divestiture of the Austrian commercial distribution rights of two of its compact tractor models to Lindner Traktorenwerk GesmbH, an Austrian agricultural machinery maker.

With strong global brands, CNH is a leader in the agricultural equipment, construction equipment and financial services industries and had combined 1999 revenues of approximately $11 billion. Based in the United States, CNH has operations in 16 countries and sells its products in 160 markets through a network of more than 10,000 dealers and distributors. CNH equipment is sold under the following brands: Case, Case IH, Fermec, Fiatallis, Fiat-Hitachi, Link-Belt (earth moving equipment), New Holland, O&K and Steyr. CNH offers a range of financial services under the Case Credit, New Holland Credit, CNH Capital and Soris brands.