The transaction is consistent with both companies' long-term objectives. The sale maintains CNH's commitment to realize $600 million in merger synergies by 2003, reduce manufacturing complexity, invest in its core businesses and strengthen alliances with its global suppliers. Graziano, a leading transmission and components supplier to original equipment manufacturers, will expand its business in the United Kingdom.

"Both CNH and Graziano will benefit from this agreement," said Paolo Monferino, president and chief executive officer. "The sale of our Carr Hill facility meets both our organizations' strategic objectives and provides the uninterrupted supply of transmission components to CNH equipment manufacturing facilities."

Graziano expects to offer employment to the current CNH employees at the Carr Hill facility, said Gianni Sarti, Executive Vice President, Graziano Transmissioni.

"High Quality standards, state of the art production machinery and an excellent manufacturing engineering capability in high tech gears are the strengths of Carr Hill that will support our development strategy in UK and in North America."

The expected turnover 2001 of the Carr Hill facility will be in the range of 28 Million $.

Terms of the agreement were not disclosed.

CNH is the number one manufacturer of agricultural tractors and combines in the world, the third largest maker of construction equipment, and has one of the industry's largest equipment finance operations. Revenues in 2000 were over $10 billion. Based in the United States, CNH's network of 10,000 dealers and distributors operates in over 160 countries. CNH agricultural products are sold under the Case IH, New Holland and Steyr brands. CNH construction equipment is sold under the Case, Fiatallis, Fiat-Hitachi, Link-Belt, New Holland, and O&K brands.

Graziano Trasmissioni manufactures gearboxes, axles, synchronizers, and custom gears and drives for earthmoving and agricultural equipment and passenger car manufacturers. Revenues in 2000 were over $ 200 Million, 70 % of which from export. Graziano has 6 operations in Italy and one in India with 1800 Employees. Graziano is certified by AVSQ (1997) , its quality standards conform to UNI EN ISO 9001 achieved in 1996 and the QS-9000 is expected within 2001.

Graziano Trasmissioni is a Company of the Saurer Group (CH).