CNH Reports Record Third Quarter Net Income of $252 Million, up 107%

Strong worldwide Agricultural Equipment ("AG") industry retail unit sales growth in the third quarter and first nine months of this year, combined with improved market share, drove net sales of AG up 38% for the quarter and for the first nine months of 2008. In the quarter, industry sales of higher horsepower tractors and combines increased, particularly in North America, while the overall market was flat compared with the prior year, contributing to a more robust product mix of CNH's AG sales. Positive effects of exchange rate changes (4%) also drove the robust AG sales growth in the quarter. For the first nine months, growth in industry sales of higher horsepower tractors and combines exceeded the growth of the overall AG market.

Net Sales of Equipment

(Unaudited, US$ in        Quarter Ended           Nine Months Ended
 millions, except         --------------- Percent  --------------- Percent
 percents)                9/30/08 9/30/07 Change   9/30/08 9/30/07 Change
                          ------- ------- ------   ------- ------- -------

Agricultural Equipment    $ 3,171 $ 2,299   37.9 % $ 9,935 $ 7,205    37.9%
Construction Equipment    $ 1,155 $ 1,258   (8.2)% $ 3,769 $ 3,689     2.2%
                          ------- -------          ------- -------
Total Net Sales of
 Equipment                $ 4,326 $ 3,557   21.6 % $13,704 $10,894    25.8%

Construction Equipment net sales declined 8% in the third quarter as worldwide construction equipment industry retail unit sales declined approximately 12%. Increased industry sales of heavy construction equipment did not offset the moderate decline in industry sales of light equipment. In addition, increased industry retail unit sales of 39% and 6% in Latin America and Rest-of-World markets respectively in the third quarter and increases of 33% and 17% respectively for the first nine months, together with pricing actions, did not offset declines caused by weakness in North America and Western Europe for both the quarter and the first nine months of the year. Positive effects of exchange rate changes (6%) also partially offset Construction Equipment net sales declines in the third quarter. The worldwide industry retail unit sales decline, which started in the second quarter, intensified in the third quarter, bringing the nine month total approximately 3% below the prior year period. Construction Equipment's market share was stable for both the quarter and the nine month period.

Equipment Operations Gross Profit and Margin

CNH's AG sales growth, mix improvements, pricing actions and positive effects of exchange rate changes drove an 18% increase in CNH's Gross Profit in the third quarter compared with 2007 and offset the weakness in Construction Equipment caused by the North American and Western European industry declines. In the quarter, net pricing and positive effects of exchange rate changes exceeded economic cost increases resulting in a positive net price recovery impact on Gross Profit of $44 million. AG's third quarter Gross Margin improved 60 basis points ("bps") compared with 2007 while Construction Equipment's Gross Margin declined.