New Holland N.V. (NYSE: NH) today announced that the Company's joint venture in China has received its business license from the Heilongjiang State Administration for Industry and Commerce of the People's Republic of China. The license grants Harbin New Holland Beidahuang Tractor Ltd. full permission to begin operations and conduct business in the People's Republic of China. Speaking on the occasion of the joint venture's first Board of Directors meeting, New Holland CEO Umberto Quadrino said, "It is indeed an honor to have been awarded this opportunity to participate in such a substantial way in the mechanization of China's cash grain farm economy. We are especially fortunate that our new joint venture is being launched now, on the eve of the 50th Anniversary of the founding of the People's Republic of China. This first step toward establishing a full line presence for New Holland in the People's Republic of China is the direct result of the efforts of a dedicated team of professionals from the two partners working together to make our dream a reality." "During the significant 50th Anniversary of the People's Republic of China, we welcome the glorious moment in which we achieve the successful cooperation on the high horsepower tractor project between New Holland and the Hong Qi Machinery Factory," Mr. Wang Jiaxu, Vice-Director of the General Bureau of State Farms of Heilongjiang told the Board of Directors. "We would like to express our heartfelt congratulations to this project, which is the achievement of both parties efforts, and the essence of our sincerity in commitment to the principle of equality and mutual benefit. Not only has this project had a good beginning, but the most important point is that another successful cooperative effort between New Holland and us has been established." At today's Board of Directors Meeting Jean-Marc Perrier was elected Chairman and Zhu Xi Guang was elected Vice Chairman. Under the terms of the joint venture agreement, the positions of Chairman and Vice Chairman will rotate between the partners every four years. New Holland owns approximately 70% of the joint venture with the Heilongjiang Beidahuang State Farm Group holding the remaining 30%. Harbin New Holland is located in Harbin, the capitol city of Heilongjiang Province, one of China's most productive agricultural regions. The joint venture will produce New Holland agricultural tractors in the 100-180 horsepower range for sale in the People's Republic of China and for export. Preparation of the factory is scheduled during the coming winter months, with production beginning in the spring of 2000. The formation of the joint venture was announced in March, 1999. In April, 1999, New Holland delivered 363 tractors to the province for use during the 1999 season. The tractors were built at New Holland's Basildon, UK Plant. Financing was provided by the Overseas Economic Cooperation Funds of Japan. The Harbin Hong Qi Machinery Factory is a leading manufacturer of large scale irrigation equipment for the region. The plant also produces rolled steel and a variety of products for industry, power generation and agriculture. The General Bureau of State Farms of Heilongjiang Beidahuang encompasses 103 State Farms with over two million hectares of cultivated land, producing over five million tons of grain per year. The organization operates 194 industrial, commercial, transportation, construction and services enterprises and has a population of 1.6 million. New Holland is a world leader in the design and manufacture of a full line of agricultural and construction equipment, and offers a rapidly expanding line of financial services in many of its markets. The Company and its joint venture partners operate through a global network of more than 6,000 dealers and distributors in 160 countries. ots Original Text Service: New Holland N.V. Internet: http://www.newsaktuell.de Contact: Jeffrey Walsh, Media Relations, of New Holland N.V., +44-181-479- 8809, or fax, +44-181-479-8626, or JWALSH@NEWHOLLAND.COM