CNH Global N.V. recently announced the creation of Fiat Kobelco Construction Machinery S.p.A. (Fiat Kobelco). The new joint venture will encompass both the operations and distribution network of Fiat-Hitachi and Kobelco’s European activities.

CNH will own 75 percent of the new entity, Kobelco Construction Machinery Co. Ltd. (Japan) will hold a 20 percent interest, and Sumitomo Corporation will maintain its 5 percent stake. The action is concurrent with the ending of the European regional alliance between CNH and Hitachi Construction Machinery Company Ltd.

Beginning immediately, the line of heavy construction equipment previously sold under the Fiat-Hitachi brand will be sold under the Fiat Kobelco brand. These products, all of which utilize CNH technology and are built in CNH factories, include wheeled and crawler excavators, wheeled loaders, dozers, graders. In addition, the company’s line of light equipment, including backhoe loaders and skid steer loaders will also be sold under the Fiat Kobelco brand.

In Europe, starting from January 2003, crawler excavators using Kobelco’s technology will be manufactured in the company’s San Mauro (Turin), Italy plant and sold under the Fiat Kobelco brand. Fiat Kobelco branded mini-excavators, also based on Kobelco technology, will be manufactured in Imola, Italy. Kobelco branded excavators will continue to be supplied from Japan.

These actions represent the second phase in the formation of the alliance between CNH and Kobelco Construction Machinery Co. Ltd. and Kobe Steel Ltd., which was signed on January 10, 2002 in Tokyo. Simultaneously with the actions in Europe, CNH will increase its interest in Kobelco Construction Machinery Co. Ltd. (Japan) to 20 percent.

In the third phase of the formation of the alliance, to be completed by the third quarter of 2004, Kobelco Construction Machinery Co. Ltd. (Japan) has the option to increase its interest in Fiat Kobelco to 35 percent, while CNH has the option to increase its interest in Kobelco Construction Machinery Co. Ltd.

(Japan) to 35 percent.

Sumitomo Construction Machinery will continue to supply crawler excavators to the Case Construction network and brand.