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Terex launches stock buyback

The Terex board of directors has approved a share repurchase programme to buy back up to $200 million worth of its outstanding common stock. The purchases may be made form time to time at the company’s discretion, when it feels the price or conditions are right.

In addition the company will redeem all of the $200 million principal outstanding on its 9-1/4 percent Senior Subordinated Notes due in 2011. The redemption will be effective as of January 15, 2007.

Terex will pay the holders of the notes 104.625 percent of the principal, plus accrued and unpaid interest up to the redemption date. As of September 30, 2006, these notes represented $200 million of Terex's $792 million of long-term debt. These notes were originally issued in December 2001.

Ronald M. DeFeo, chairman and CEO of Terex, said, "Terex Corporation's strong financial position enables us to implement this stock repurchase program. The decision to repurchase shares demonstrates our commitment to enhancing shareholder value and our confidence in the performance and future prospects of Terex."

"In addition to implementing the share repurchase program, we are pleased that we will achieve our announced goal of prepaying $200 million in senior subordinated notes in January 2007. Based on the prospects of continued strong operating results and cash flow, we will continue to seek to further enhance shareholder value through selective strategic initiatives."