ADDING and REPLACING TecumsehPower Company Sells Peerless Transmissions Business to Husqvarna Outdoor Products

Thu Feb 5, 2009 1:59pm EST

* Reuters is not responsible for the content in this press release.

Company Restructuring Efforts Continue As Planned
GRAFTON, Wis.--(Business Wire)--
Add in first graph of release: the assets of 

Add after third graph of release: in the engine business. 

Add after fifth graph of release: Husqvarna is not acquiring any assets or
operations of Tecumseh's engine business. 

The corrected release reads: 


Company Restructuring Efforts Continue As Planned

TecumsehPower Company, provider of powertrain solutions to the global outdoor
power equipment industry, announced today it has sold the assets of its Peerless
transmissions business to Husqvarna Outdoor Products. Financial terms of the
transaction were not disclosed. 

The Peerless transmissions business, located primarily in Salem, IN, with
limited operations in Grafton, WI, designs, manufactures and sells transmissions
to outdoor power equipment OEM customers, and aftermarket service parts to OEMs
and central warehouse distributors. 

The transaction announced today represents the latest in a series of initiatives
TecumsehPower`s management team is taking in response to significant declines in
customer volume in the engine business. 

"In response to a very difficult situation we are executing an orderly plan that
protects our customers, creates value for our investors and preserves as many
jobs as possible," explained TecumsehPower Company President and CEO Rudolf
Strobl. "The successful divestiture of the Peerless transmissions business was a
critical step in that process and is good news for everyone involved." 

In October 2008 TecumsehPower informed its customers that the company would shut
down manufacturing operations related to its engine business, a process that was
largely completed by the end of 2008. And while engine production lines have
stopped, the company has maintained its commitment to existing customers with
full support for engine parts and services. Husqvarna is not acquiring any
assets or operations of Tecumseh's engine business. 

"We have sought and found solutions that preserve the commitment we made to our
customers," said Strobl. "We have kept them informed every step of the way and
will continue to evaluate every alternative with their long-term interest in

About Tecumseh Power Company

TecumsehPower Company is a global provider of powertrain solutions for snow
throwers, generators, other lawn and garden, industrial and agricultural
applications. Manufacturers of leading brands worldwide continue to use our
powertrain solutions in their most demanding applications. 

TecumsehPower Company
Ken Hoehn, 262-573-9636
Platinum Equity
Dan Whelan, 310-282-9202 

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