NEW HOLLAND CONSTRUCTION TO MANUFACTURE BACKHOE LOADERS IN THE U.S.

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Company aims to increase supply and reduce lead times for customers in North America

BURLINGTON, Iowa - (May 20, 2008) - In a move that will add to an already solid line of American-manufactured equipment, New Holland Construction has announced that it will begin production of backhoe loaders at its Burlington plant. Starting in September 2008, this shift will transfer backhoe loader production for the North American market from the company's Imola, Italy plant to the U.S.

The Burlington plant, which spans 156 acres and employs over 400 people, already manufactures New Holland Construction tractor loaders. The addition of New Holland Construction backhoe loaders to the plant's output will mean increased supply and decreased lead times for North American customers.

"The Burlington plant has long been known as a pillar of the local community which is heavily rooted in manufacturing," said Robert Ciecko, plant manager at Burlington. "Significant investments have been made in the plant to continue this tradition, and to continue the standard of quality for every machine that comes off the assembly line. We take pride in every piece of equipment we make and are very excited to include New Holland Construction backhoe loaders among them."

The Burlington plant is known for manufacturing excellence in robotic welding, machining, painting and assembly; $6.75 million has been recently invested in plant improvements and expansion, which included in-sourcing chassis welding and loader arm welding and a building upgrade. Additional investment plans will add over 100 new jobs by April 2009.

"At New Holland Construction, we are committed to designing and manufacturing construction equipment that is built around our customers. This promise extends from the construction business owner to the operators that use the machines day in and day out," said Terry Sheehan, vice president of New Holland Construction, North America. "We take pride in building our machines to the highest quality standards, and by bringing production of backhoe loaders closer to our North American customers, we are able to further strengthen this commitment."

Production of New Holland Construction backhoe loaders at the Burlington plant will include the B90B, B95B, B95BTC, B95BLR and the B110B models. These were recently unveiled at this year's CONEXPO in standard, tool-carrier and long-reach versions.
 
 
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New Holland Construction manufactures and markets a full line of skid steer loaders, compact track loaders, loader backhoes, tractor loaders, excavators, wheel loaders, telehandlers, crawler dozers and motor graders. Drawing from the strength and resources of its brand network, New Holland Construction delivers technological innovation and the highest in safety and environmental standards. New Holland Construction customers are supported by a network of 700 dealers and more than 1,800 outlets in 100 countries. For more information on New Holland Construction, visit www.newholland.com.