November 1, 2002
Modern Machinery Company acquires Pacific North Equipment Company

Contact: Steve LaRance 406-523-1365

Modern Machinery Company, Inc. ("Modern"), a heavy equipment dealer headquartered in Missoula MT has acquired the assets and operations of Pacific North Equipment ("PNE"), adding to its service area stores in Kent and Chehalis WA, Portland and Eugene OR, and Magadan, Russia. The acquisition makes Modern Machinery one of the largest Komatsu dealers in the U.S.

Modern currently operates full-service branches in Missoula and Billing, MT; Boise and Pocatello, ID; and Spokane, WA. With the addition of the PNE locations, Modern's territory will span the entire Northwest. The combination of Modern and PNE should provide benefits to its customers through greater buying power, more equipment choices, better pricing, expanded product lines and rental services, and better customer service and support.

Brian Sheridan, Modern's President, said in a letter to employees, "I'm extremely excited about the purchase of PNE…I'm looking forward to using the combination of Modern's and PNE's strengths to establish a vibrant dealership covering the entire Northwest."

In addition to Komatsu, Modern represents a number of complimentary product lines, including Ingersoll-Rand, Rosco, LeeBoy, Valmet, Timbco, Haulpak, Cedarapids, Blaw-Knox, P&H, O&K and Moxy. Modern was formed in 1944 and has been part of the Washington Companies since 1976. The Washington Companies are a group of companies privately owned by Dennis R. Washington that operate in such diverse areas as rail transportation, mining, environmental construction and remediation, and marine transportation.