Detroit Diesel Corporation (DDC) Announces Intention to Build New Heavy-Duty Diesel Engine at Redford, Mich., Facility * Medium-Duty Engine Assembly Also Slated for Redford * Announcement follows ratification of new 5-1/2 year labor contract for DDC production employees DETROIT, Nov. 22 /PRNewswire/ -- Detroit Diesel Corporation (DDC) today announced its intention to build a new, heavy-duty diesel engine line at the company's Redford, Mich., manufacturing facility. DDC also stated today that it plans to initiate North American assembly of the MBE 900 medium-duty diesel engine at Redford. DDC intends to industrialize production of the two engine platforms at the Redford facility by 2007. "Detroit Diesel Corporation is very pleased to announce this positive development for our Redford employees and the state of Michigan," said Carsten Reinhardt, President and CEO for Detroit Diesel Corporation. "The planned addition of the new heavy-duty engine platform and MBE 900 engine assembly speaks to the strength of our manufacturing operations and workforce, and demonstrates the importance of Detroit Diesel to DaimlerChrysler's North American commercial vehicle strategy." The new heavy-duty truck engine -- currently in development by DDC and parent company DaimlerChrysler -- will be launched in 2007 and will incorporate the latest in diesel engine and emissions technology. For a period of transition, the new engine will be sold in tandem with the popular DDC Series 60 engine. In the NAFTA market, the new engine will be installed in heavy-duty vehicles produced by the Freightliner Group and in products built by selected other DDC customers. The MBE 900 medium-duty diesel truck engine has been available since 1998. Offered in four- and six-cylinder versions, the MBE900 is extensively used in Freightliner Group vehicles in North America. The Freightliner Group, headquartered in Portland, Oregon, is the largest manufacturer of heavy-duty trucks in North America and a leading manufacturer of medium-duty vehicles. Freightliner produces and markets Class 3-8 vehicles under the Freightliner, Sterling, Western Star, American LaFrance and Thomas Built Buses nameplates. The Freightliner Group and Detroit Diesel are both part of DaimlerChrysler's Commercial Vehicles Division. The announcement of new engine production at Redford follows the ratification of a new labor contract covering 1,300 hourly workers at the facility. Detroit Diesel and the United Auto Workers Local 163 had reached a tentative agreement on Wednesday, November 10. The contract was formally ratified by a vote of the UAW membership on Sunday, November 21. The new contract is effective immediately and runs until April 30, 2010. "Detroit Diesel Corporation is very pleased to have reached a new labor agreement with the UAW for the Redford plant," Reinhardt said. "We believe this is a fair and equitable contract that provides our valued employees with a highly competitive compensation package while allowing for increased manufacturing flexibility. The agreement signals a spirit of partnership and gives us tremendous momentum as we make plans to move forward with new investments at Redford." Detroit Diesel Corporation, headquartered in Detroit, Michigan, 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 engines for the on-highway, off-road and automotive markets and is a QS-9000 certified company. Detroit Diesel services these markets directly and through a worldwide network of more than 2,700 authorized distributor and dealer locations. Detroit Diesel is a subsidiary of DaimlerChrysler AG, the world's leading manufacturer of heavy- duty diesel truck engines. DATASOURCE: Detroit Diesel Corporation CONTACT: Chris Brandt of Detroit Diesel Corporation, +1-503-745-5471, Fax: +1-503-745-5096, E-mail: Web site: http://www.detroitdiesel.com/ Company News On-Call: http://www.prnewswire.com/comp/239425.html

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