LAKE FOREST, Illinois

(September 28, 2006) - CNH America LLC (CNH) and the International Association of Machinists (IAM) met today in Fargo, North Dakota to begin negotiations for a new contract covering about 520 CNH employees. The current contract expires onOctober 31, 2006. "We are optimistic that an agreement can be reached that is fair and equitable for all parties, one that will favorably impact CNH's cost competitive position in the marketplace and ultimately the long-term viability of the Fargo plant," said Linda Maurer, CNH vice president, human resources.

"The union is also optimistic that an agreement can be reached that will be fair and equitable for all parties," stated Dennis Walworth, directing business representative IAM District Lodge 5.

The parties have mutually agreed not to discuss details of the negotiations with the media prior to conclusion.

The Fargo location covered by the contract is one of CNH's 39 manufacturing facilities located around the world.