SALE OF OMC'S JOINT VENTURE INTEREST
TO VOLVO PENTA OF THE AMERICAS
Waukegan, Ill. and Chesapeake, Va., - December 23, 1998 - Outboard Marine Corporation and Volvo Penta of the Americas, Inc. announced today that Volvo Penta has acquired OMC's interest in the Volvo Penta Marine Products L.P., a stern drive manufacturing joint venture. Terms of the agreement, which closed December 8, 1998, were not disclosed. The joint venture partnership, which manufactured stern drive engines for powerboats, was formed in 1993. Concurrently, OMC and Volvo Penta signed a long-term agreement for the supply of stern drives to OMC-owned boat companies, and in which each party agrees to supply service parts to the other.
Outboard Marine Corporation is a leading manufacturer and marketer of internationally-known boat brands, including Chris-Craft?, Four Winns?, Seaswirl?, Javelin?, Stratos?, Lowe?, Hydra-Sports?, and Princecraft?; marine accessories and marine engines, under the brand names of Johnson? and Evinrude?; and FICHT? fuel injection - the industry's premier low-emission, two-stroke engine technology.
Volvo Penta of the Americas, Inc., is a wholly owned subsidiary of AB Volvo Penta, a leading supplier of marine propulsion systems for pleasure and commercial applications, as well as heavy-duty diesel engines for industrial applications. Volvo and Volvo Penta are registered trademarks of AB Volvo, which has its core business in cars, trucks, bus, construction, marine and aerospace activities.