Deere & Company and Woods Equipment Company reported that they would discontinue Alloway Industries, L.L.C. -- a joint venture manufacturing operation in Fargo, ND. Alloway Industries will cease production by July 31, 2002.

Alloway Industries makes hay and forage equipment for John Deere and farm implements for Woods. Woods Equipment Company, of Rockford, IL, plans to continue using the Alloway brand, manufacturing Alloway products at other locations. Deere said that most of the John Deere-branded products that are currently manufactured by Alloway Industries would be discontinued. Manufacturing of other products and service parts will be moved to a Deere facility or a current supplier.

The decision to close Alloway Industries affects a workforce of approximately 80 full-time employees, all of whom will be eligible for a comprehensive severance package.

Deere said it initiated the decision to close Alloway Industries by providing notice to Woods of its intention to resign from the joint venture. Deere said this action is one of several focused on reducing the asset intensity in the company and eliminating excess production capacity.

Deere and Woods formed the Alloway Industries joint venture in 1996. Alloway Industries occupies a 100,000 sq.- ft. facility in Fargo. Other John Deere operations in the Fargo area are not impacted by this announcement. These include Phoenix International in Fargo and AgAir in Valley City.