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Kohler Co. Signs Agreement to Acquire Lombardini Srl

April 1st, 2007:

Kohler Co.

Signs Agreement to

Acquire Lombardini Srl

Kohler Co.'s Global Power Group entered into an agreement to purchase Lombardini Srl www.lombardinigroup.it from Mark IV Luxembourg S.A.R.L., a subsidiary of Mark IV Industries, Inc. The acquisition agreement is subject to relevant regulatory approval, expected to take place early summer.

Kohler Co.'s acquisition of Lombardini "will provide a strong complement to our existing engine business by adding a complete diesel engine line to serve the needs of our commercial and consumer customers worldwide," said Dick Fotsch, Global Power Group President.

The KOHLER® engine division, in operation since the 1920s, manufactures air- and liquid-cooled, four-cycle gasoline engines in the 4 to 38 horsepower range. KOHLER engines are supplied to equipment manufacturers worldwide in the lawn and garden, commercial and industrial, agricultural and construction markets. Kohler manufactures its engines from three North American facilities and one facility in China, as part of its new Kohler-YinXiang joint venture agreement.

The 85-year old Lombardini Srl, headquartered in Reggio Emilia, Italy, manufactures small diesel, gasoline and petrol engines for the industrial, transportation, agriculture, marine and light-construction industries. Lombardini's diesel and gasoline engine line ranges from 3 to 72 hp.

"By being acquired by Kohler Co., Lombardini will become part of a group committed to growing the engine business globally," said Dr. Gianni Borghi, CEO, Lombardini Srl. "We're confident that the combined engineering expertise and worldwide market support will serve our original equipment customers and end customers very well.

"The acquisition will also provide Kohler with an expanded geographical presence in the European and North African markets. "Lombardini is a strong geographic complement to our engine business and we're pleased to add contemporary diesel technology to our product offering," said Fotsch, adding that Lombardini's advances in cleaner, quieter diesel engines were complementary to Kohler's ongoing commitment to environmentally sound products.