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Terex Corporation Obtains Credit Ratings Upgrade

August 03, 1999

WESTPORT, Conn.--(BUSINESS WIRE)--Aug. 3, 1999--Terex Corporation (NYSE: TEX) today announced that Moody's Investors Service has upgraded to B2 from B3 the rating on $244 million of its 8 7/8% senior subordinated notes, due 2008, and upgraded to Ba3 from B1 the ratings on its $500 million of its senior secured credit facilities.

According to Moody's, Terex's recent results are further testimony to the dramatic turnaround of the company's operating and financial performance over the past five years. The ratings upgrades reflect Terex's strong operating performance, improving credit profile, substantial progress in integrating acquisitions, leading market positions, and improved geographic and product diversification. Moody's further stated that the ratings recognize the company's low fixed cost structure, which provides margin protection in a cyclical downturn, a steady and profitable parts business and record backlog.

``We are very pleased with Moody's ratings upgrade,'' said Ronald M. DeFeo, Terex's Chairman and Chief Executive Officer. ``Terex has undergone a major transformation over the past several years and we are delighted that Moody's has recognized the substantial improvement of our capital structure. We remain committed, as an organization, to continue to grow the company and reduce leverage at the same time.''

Terex Corporation is a diversified global manufacturer based in Westport, Connecticut, with 1998 revenues in excess of $1.2 billion. Terex is involved in a broad range of construction and mining-related capital equipment operating in two segments - Terex Earthmoving and Terex Lifting. Terex Earthmoving manufactures and sells heavy-duty off-road trucks and high-capacity surface mining trucks under the brand names of Terex, Unit Rig and Payhauler, as well as large hydraulic mining shovels under the brand name O&K. Terex Lifting manufactures and sells telescopic mobile cranes, lattice boom cranes, tower cranes, aerial work platforms, utility aerial devices, telescopic material handlers and truck mounted cranes, and related products, under the brand names Terex, Lorain, PPM, P&H, Marklift, Koehring, Bendini, Simon, RO, Telelect, Square Shooter, Holland Lift, American, Italmacchine, Peiner and Comedil.

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