COMPANY NEWS RELEASE
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[AGOCO LOGO](R) AGCO Corporation
                4205 River Green Parkway Duluth, GA 30096-2568 USA
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                Telephone 770/813-9200


FOR IMMEDIATE RELEASE               CONTACT: Molly Dye
------------------------                     Vice President, Corporate Relations
Wednesday, March 6, 2002                     (770)813-6044

            AGCO CLOSES PURCHASE OF CATERPILLAR'S CHALLENGER BUSINESS

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         DULUTH, GA - March 6 - AGCO Corporation (NYSE: AG), a major worldwide
designer, manufacturer and distributor of agricultural equipment, has completed
the acquisition of the design, assembly, and marketing rights of the new MT
Series of Caterpillar's Challenger high tech farm tractors.

         Merlin Van Gerpin was named North American Manager of Sales for the new
Challenger brand of products, and he will be located at AGCO headquarters in
Duluth, GA.

         AGCO will continue to manufacture the Challenger tractors in DeKalb,
IL. Neal Rogers will be the Manager, DeKalb Operations. He was formerly Manager
of Shop Operations of the GE plant in DeKalb and a graduate of Bradley
University, Peoria, IL, in Manufacturing & Engineering Technology. "Neal has a
tremendous customer service focus and has proven leadership ability in the areas
of manufacturing, quality, and continuous improvement," says Brian Truex, Senior
Vice President of Manufacturing Technologies & Quality.

         The transaction was completed March 5, 2002. AGCO issued 1,020,356
shares of common stock in consideration of the purchase price and will provide
technology and brand licensing fees for each applicable unit produced.

         The common stock issued in connection with this transaction has not
been registered under the Securities Act of 1933, as amended or applicable state
securities laws, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of
the Securities Act and applicable state laws. This announcement shall not
constitute an offer to sell or a solicitation of an offer to buy the common
stock.

         AGCO Corporation, headquartered in Duluth, Georgia, is a global
designer, manufacturer and distributor of agricultural equipment and related
replacement parts. AGCO products are distributed in 140 countries. AGCO offers a
full product line including tractors, combines, hay tools, sprayers, forage
equipment and implements through more than 7,750 independent dealers and
distributors around the world. AGCO's products are distributed under the brand
names AGCO(R), AGCOSTAR(R), Ag-Chem(R), Farmhand(R), FENDT(TM), Fieldstar(R),
GLEANER(R), Glencoe(R), Hesston(R), LOR*AL(R), Massey Ferguson(R), New Idea(R),
RoGator(R),SOILTEQ, Spra-Coupe(R), Terra-Gator(R), Tye(R), White Planters, and
Willmar(R). AGCO provides retail financing through AGCO Finance in North America
and through Agricredit in the United Kingdom, France, Germany, Ireland, Spain
and Brazil. In 2001, AGCO had sales of $2.5 billion.

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