Terex Updates Full Year 2005 Performance and 2006 Outlook

-- Record revenue in 2005 of $6.4 billion

-- Full-year 2005 earnings expected to increase approximately 64% versus 2004, excluding special items

-- Net debt at December 31, 2005 decreased $209 million to $571 million

-- Backlog increased 62% compared with 2004, to $1,643 million

-- Conference call to be held to discuss this release on Friday, March 10 at 8:30 a.m.

Terex Corporation (NYSE: TEX) today announced updated full year2005 earnings per share guidance in a range of $3.90 to $4.00,excluding special items. This assumes an effective tax rate of 35%,which will likely change upon finalization of the Company's 2005financial results, which should be completed within several weeks.Additionally, Terex expects to report 2005 revenue of approximately$6.4 billion, an increase of roughly 28% from revenue of $5.0 billionfor 2004. Net debt (defined as total debt less cash) decreased by $209million during the year, with $192 million of this reduction occurringin the fourth quarter. Terex will provide detailed full-year 2005financial results when these results are completed and audited, thetiming of which is discussed in more detail below.

"In general, 2005 was a very good year for Terex, reflectingcontinued strengthening end markets in many of our product categoriesand the early stages of a recovery in others," commented Ronald M.DeFeo, Terex's Chairman and Chief Executive Officer. "In 2003, we setout to achieve $6 billion in revenue by 2006. We have alreadysurpassed that objective in 2005. We continue to benefit from anoperating environment that is poised to produce another year ofsignificant growth, as evidenced by our backlog of approximately $1.6billion at the end of 2005, up 62% from our backlog at the end of2004. We have maintained our focus on improving the balance sheet, andthus have reduced our net debt by $209 million in 2005 and anticipatea net debt to total capitalization ratio of approximately 33% atDecember 31, 2005, a significant accomplishment for Terex."

Mr. DeFeo added, "Our strong business performance in the fourthquarter of 2005, particularly in the Terex Aerial Work Platformssegment, which outperformed our operating profit expectations byapproximately $15 million in the quarter, unfortunately was more thanoffset by certain charges we incurred during the quarter. The TerexConstruction segment incurred charges in the quarter related tophysical inventory results at four locations of approximately $4million, additional inventory valuation charges of approximately $6million, and an increased bad debt provision largely related tocustomers of the compact construction business of approximately $4million. The Terex Cranes segment had a field retrofit program, whichcaused the Company to accrue approximately $4 million in the quarter.The Terex Roadbuilding, Utility Products and Other segment wasimpacted by expenses at the American Truck Company ("ATC") and Tatraand the write-down of certain assets at Tatra related to the inabilityof ATC to complete the tender for a U.S. Marine Corps truckprocurement, and the fact that the Israeli Ministry of Defense did notexercise its option to purchase additional trucks from ATC. Lastly,the Company incurred charges of approximately $9 million resultingfrom increased accruals for equity based compensation and other plans,as well as audit and other professional fees largely related to theCompany's ongoing effort to improve its financial reporting process."

Segment revenue and backlog highlights for 2005 are includedbelow. Please note that the segment reporting for 2005 does notreflect the recently announced realignment that was put into effect inJanuary 2006, and is consistent with the presentation of financialinformation provided during the 2005 fiscal year.

Terex Construction: 2005 revenue increased approximately 23% ascompared with 2004, reflecting generally strong year-over-yearperformance across many business units, especially the scrap handling,mobile crushing and screening and European telehandler productcategories. Fourth quarter revenue was essentially flat when comparedwith the prior year, as Terex prepared to introduce several newproducts in this segment in January 2006. Terex Construction backlogas of December 31, 2005 was approximately $290 million, upapproximately 9% from the prior year-end.

Terex Cranes: 2005 revenue increased approximately 18% as comparedwith 2004, reflecting a continued strong global tower crane market andmodest improvement in the North American and international cranesbusiness. Fourth quarter revenue grew approximately 8% as comparedwith the fourth quarter of 2004. Terex Cranes backlog as of December31, 2005 was approximately $452 million, up 80% versus the prioryear-end, highlighted by the strengthening of the North Americanmarket.

Terex Aerial Work Platforms: Terex Aerial Work Platforms continuedits strong 2005 performance, posting a year-over-year revenue increaseof over 56%, continuing to reflect the sharp increase in demand forthese products by the rental channel. For the fourth quarter, revenueincreased over 60% as compared with the fourth quarter of 2004. TerexAerial Work Platforms backlog as of December 31, 2005 wasapproximately $482 million, more than three times the backlog at theprior year-end.

Terex Materials Processing & Mining: Completing a solid year,Terex Materials Processing & Mining experienced a 2005 increase inrevenue of over 38% versus the prior year's results, primarily due tothe resurgence in end market activity in surface mining, driven bysignificantly higher commodity prices. The addition of the Sherman,Texas based drilling equipment business acquired by Terex in December2004 accounted for 13% of the year-over-year growth. For the fourthquarter, revenue grew approximately 53% versus the fourth quarter of2004. Terex Materials Processing & Mining had backlog as of December31, 2005 of approximately $220 million, up 29% compared with the prioryear-end.

Terex Roadbuilding, Utility Products and Other: 2005 revenue inthe Terex Roadbuilding, Utility Products and Other segment grewapproximately 11% as compared with 2004, reflecting a mix ofperformances. The concrete mixing truck and utilities businesses bothshowed double digit percentage increases in annual revenue. Theroadbuilding business had a more modest year-over-year growth, as didthe Tatra truck business. For the fourth quarter of 2005, revenue wasbasically flat versus the same quarter of 2004, but when ATC isexcluded, the segment showed increased revenue of just over 13%. TerexRoadbuilding, Utility Products and Other backlog as of December 31,2005 was approximately $219 million, up 18% compared with the prioryear-end.

Capital Structure

"Net debt at the end of the fourth quarter of 2005 decreased toapproximately $571 million, down $209 million from $780 million at theend of 2004," commented Phil Widman, Terex's Senior Vice President andChief Financial Officer. "Our reduction of net debt in the fourthquarter of 2005 was approximately $192 million, leading the Company toanticipate a ratio of net debt to total capitalization ofapproximately 33% at year end, meaningful progress when compared tothe 41% result achieved at the end of 2004."

"We are pleased with our fourth quarter cash flow performance andour ongoing efforts in managing our balance sheet, especially in lightof the continued economic expansion. We continue to improve on workingcapital efficiency, and focusing on managing growth with minimaladditional investment," said Mr. Widman. "We had stated an objectivein 2003 to deliver a 20% working capital to revenue relationship as apercent of trailing three month annualized sales at the end of 2004,and an 18% ratio at the end of 2005. We have met our goals in theseyears, with our most recently delivered result of 17.6% at the end of2005. By comparison, Terex had a 36% ratio invested in working capitalat the end of 2002. Our future success on working capital improvementswill need to come from managing our revenue growth with continueddiscipline and realizing benefits from the implementation of leanmanufacturing principles."

2006 Outlook

The following outlook consists of forward-looking informationbased on Terex's current expectations. Actual results could differmaterially from these projections. For further details on this, seethe Safe Harbor Statement below.

"During 2005, Terex experienced a second consecutive year of sharpincrease in demand for many of our products," said Mr. DeFeo."Additionally, the pricing actions we have taken and the costenvironments of our markets began to yield improvements in margin formany of our businesses. We see meaningful growth in revenue in 2006,and our expectation is for the growth to be more broadly based acrossour segments, as early indications are for a strong start to 2006 forour later cycle businesses, such as Terex Cranes."

"It is our expectation that Terex's total revenue for 2006 will bebetween $6.7 and $7.1 billion, as we continue to focus on marginimprovement over increases in volume alone, with earnings per share inthe range of $5.50 to $6.00 per share, excluding special items such asthe costs associated with the early retirement of debt that we planfor 2006," continued Mr. DeFeo. "Expectations are for earnings in thefirst half of 2006 to be slightly less than our earnings in the secondhalf of 2006. Additionally, expectations are for our first quarterresults to be approximately one-third of our first half guidance."

"Our earnings per share guidance reflects the timing of somesignificant corporate costs," explained Mr. DeFeo. "This includesincreased equity based benefit costs of approximately $24 millionresulting from the delay in our ability to make certain grants in 2005due to our delayed SEC filings, coupled with the increase in theCompany's stock price since we communicated our determination of theproposed equity awards for 2005. Expenses for stock options will beapproximately $7.5 million in 2006 (approximately a $0.09 per shareimpact in 2006). Additionally, the final year accrual for theCompany's Long Term Incentive Plan has resulted in an increase inexpense of $6.5 million for 2006 over 2005, and a total expense of $21million in 2006. We expect that more than half of these expenses,totaling $52 million, will not reoccur in 2007. This, coupled withanticipated future margin improvement initiatives, reinforces ourconfidence toward achieving the 10% margin goal we have previouslytargeted."

"Lastly, we will continue to evaluate our entire portfolio ofoperations during the year. At this point in time, we believe that theTatra on/off road heavy duty truck operation, as well as the relatedAmerican Truck Company joint venture, are not core businesses. Assuch, we will evaluate our alternatives with respect to thesebusinesses over the next few months."

Other key financial information for 2006 guidance includes:

Assumptions - The effective tax rate is expected to be 35% for2006 and the average number of shares that will be outstanding for2006 is estimated at 52.1 million. Depreciation and amortization forthe Company is estimated to be in the range of $65 million. Capitalexpenditures are estimated to be approximately $60 to $65 million, orslightly less then 1% of revenue, including expenditures related tothe Company's investment in a global enterprise information technologyand management system.

Working Capital - Terex has made significant progress towards itsstated objective of improving working capital efficiency as measuredby a ratio of working capital compared to revenue. Terex already hasreduced its working capital as a percentage of revenue to 17.6% at theend of 2005. Terex will concentrate on the implementation of bestpractices across its locations, and the Company will continue tostrive in 2006 for a target of 15% working capital investment as apercentage of revenue, driven mainly by inventory turn improvement.

Corporate Expense - As stated previously, Terex has identifiedcertain expenses that will occur in 2006 at the corporate level.Additionally, in 2006 the Company will expense approximately $8million related to its global enterprise system implementation. Theseamounts have been budgeted as unallocated corporate expenses, and theearnings reports throughout 2006 will have a more significant balanceof general and administrative costs not reflected in the total segmentdetail, but which will be included in the Company's consolidatedresults.

Status of 2005 Audit and SEC Filings

The Company was not able to complete its audited financialstatements for 2004, including a restatement of the Company'sfinancial statements for 2000-2003, until February 17, 2006. Thiseffort required Terex to devote a significant amount of resources,and, as a result, the Company has not yet been able to complete itsinterim unaudited financial statements for the 2005 quarterly periodsor its audited full year 2005 financial statements. The Companycurrently estimates that it is approximately four to six weeks behindschedule with regard to completion of its 2005 audited financialstatements. While the Company is working hard to shorten the timeframeneeded to complete its 2005 audited financial statements and submitits quarterly and annual filings for 2005, Terex will file a Form12b-25 notification of late filing with the Securities and ExchangeCommission indicating that more time is required beyond the March 16thdeadline to complete its 2005 Annual Report on Form 10-K.

Safe Harbor Statement

The press release contains forward-looking information based onTerex's current expectations. Because forward-looking statementsinvolve risks and uncertainties, actual results could differmaterially. Such risks and uncertainties, many of which are beyondTerex's control, include among others: Terex's business is highlycyclical and weak general economic conditions may affect the sales ofits products and its financial results; the sensitivity ofconstruction, infrastructure and mining activity and products producedfor the military to interest rates and government spending; theability to successfully integrate acquired businesses; the retentionof key management personnel; Terex's businesses are very competitiveand may be affected by pricing, product initiatives and other actionstaken by competitors; the effects of changes in laws and regulations;Terex's business is international in nature and is subject to changesin exchange rates between currencies, as well as internationalpolitics; Terex's continued access to capital and ability to obtainparts and components from suppliers on a timely basis at competitiveprices; the financial condition of suppliers and customers, and theircontinued access to capital; Terex's ability to timely manufacture anddeliver products to customers; Terex's significant amount of debt andits need to comply with restrictive covenants contained in Terex'sdebt agreements; Terex's ability to file its periodic reports with theSEC on a timely basis; the previously announced SEC investigation ofTerex; Terex's ability to maintain adequate disclosure controls andprocedures and adequate internal controls over financial reporting;compliance with applicable environmental laws and regulations; andother factors, risks, uncertainties more specifically set forth inTerex's public filings with the SEC. Actual events or the actualfuture results of Terex may differ materially from any forward lookingstatement due to those and other risks, uncertainties and significantfactors. The forward-looking statements speak only as of the date ofthis release. Terex expressly disclaims any obligation or undertakingto release publicly any updates or revisions to any forward-lookingstatement included in this release to reflect any changes in Terex'sexpectations with regard thereto or any changes in events, conditions,or circumstances on which any such statement is based.

Terex Corporation is a diversified global manufacturer with 2005revenue of approximately $6.4 billion. Terex operates in five businesssegments: Terex Construction, Terex Cranes, Terex Aerial WorkPlatforms, Terex Materials Processing & Mining, and TerexRoadbuilding, Utility Products and Other. Terex manufactures a broadrange of equipment for use in various industries, including theconstruction, infrastructure, quarrying, recycling, surface mining,shipping, transportation, refining, utility and maintenanceindustries. Terex offers a complete line of financial products andservices to assist in the acquisition of Terex equipment through TerexFinancial Services. More information on Terex can be found atwww.terex.com.