Terex Announces SEC Investigation

August 29, 2005 — Terex Corp., Westport, Conn., announced today that it has filed a Form 8-K with the Securities and Exchange Commission (SEC), after being advised by the SEC that it will investigate the company.

According to a statement by Terex, the company understands this investigation relates to the previously announced restatement of its financial statements for the years ended December 31, 2000, 2001, 2002, and 2003. The restatement principally pertains to errors identified by Terex in accounting for — and reconciliation of — certain intercompany imbalances as well as in the failure to properly eliminate all intercompany accounts in accordance with generally accepted accounting principles. While no formal order has yet been issued, Terex is cooperating fully and intends to voluntarily provide the SEC staff with information.

Terex also has received a subpoena from the SEC in a separate matter entitled "In the Matter of United Rentals, Inc." The subpoena principally requires the production of documents concerning certain transactions involving Terex and its subsidiaries and United Rentals in 2000 and 2001. Stating that it will also cooperate fully with this investigation, Terex does not believe these transactions impact its restatement.