CNH owns 75% of the Torino, Italy-based new venture and Kobelco Construction Machinery holds a 20% interest. Sumitomo Corporation maintains its 5% stake. Fiat Kobelco will control both operations of the former Fiat-Hitachi Excavators S.p.A. and the existing Kobelco Construction Machinery (Europe) B.V., Kobelco's marketing company in the Netherlands. This action is concurrent with the ending of the European regional alliance between CNH and Hitachi Construction Machinery Co., Ltd.

In Europe, starting from January 2003, the new venture will sell crawler excavators under both the Fiat Kobelco and the Kobelco brands. Fiat Kobelco branded crawler excavators will be manufactured using Kobelco technology at the San Mauro Plant, while Fiat Kobelco branded mini-excavators, also based on Kobelco technology, will be made at the Imola Plant. KCME will continue to sell Kobelco branded excavators made in Japan

In addition, the full line of other heavy construction equipment previously sold under the Fiat-Hitachi brand will be sold under the Fiat Kobelco brand. These products, all of which are built in CNH factories, include wheeled excavators, wheeled loaders, dozers, graders, as well as a full line of light equipment.

"This key step in the formation of our global alliance with Kobelco strengthens our European distribution network through the addition of Kobelco's advanced and reliable Japanese technology," said Paolo Monferino, CNH president and chief executive officer. The crawler excavator is the most important machine within the European construction equipment market, and technology remains the basic driver for success. Our network is eagerly anticipating the products that this alliance will deliver."

"Participation in Fiat Kobelco will enable us to establish a manufacturing presence in Europe," said Takashi Ishida, Kobelco president and chief executive officer. "We look forward to supplying the best-class excavators to the market. We are now able to supply a full line of construction machinery and to best serve the customer by holding both manufacturing and marketing bases in all three of the world's strategic markets through this alliance."

At the same time Fiat-Kobelco was established, CNH increased its 10% share in Kobelco Construction Machinery to 20%. These actions form the second phase of a comprehensive global alliance between Kobe Steel, Kobelco Construction Machinery and CNH launched on January 10, 2002.

In January, CNH acquired a 10% interest in Kobelco Construction Machinery in Japan and a 65% interest in Kobelco Construction Machinery America LLC, then a U.S. subsidiary of Kobelco. Similarly, Kobelco acquired 100% of CNH's construction equipment operations in Australia, Asia and China, becoming an exclusive distributor of the Case and New Holland brands of construction equipment in this region.

In the third phase of the alliance, Kobelco Construction Machinery in Japan has the option to increase its interest in Fiat-Kobelco Construction Machinery in Europe to 35% by the third quarter 2004. Similarly, CNH has the option to increase its interest in Kobelco Construction Machinery in Japan to 35%.

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 2001 totaled $9.7 billion. Based in the United States, CNH's network of 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 Kobelco, Kobelco, New Holland, and O&K brands.

Kobe Steel, Ltd. is one of Japan's leading steelmakers, as well as suppliers of aluminum and copper products. Other major business segments include machinery, construction machinery and real estate. In the fiscal year ended March 2002, Kobe Steel had consolidated sales of about US$9 billion. The company has head offices in Kobe and Tokyo, Japan. For more information, please visit www.kobelco.co.jp/indexe.htm

Kobelco Construction Machinery Co., Ltd., 80% owned by Kobe Steel, is one of Japan's top manufacturers of hydraulic excavators and cranes. Based in Tokyo, Japan, Kobelco had consolidated sales of US$1.1 billion in the fiscal year ended March 2002. For more information, please visit www.kobelco-kenki.co.jp/english_index.html

For more information, please contact:

Gary I. Tsuchida
Communication Center
Kobe Steel, Ltd.
Tokyo, Japan
Tel +81 (0)3 5739-6010
Fax +81 (0)3 5739-5971