Shippensburg, Pa.— Ingersoll Rand Company Ltd. has reached an agreement to sell its Road Development business unit to AB Volvo for approximately $1.3 billion cash. The sale, subject to government regulatory approvals and other customary closing conditions, is expected to close in the second quarter of 2007.

Ingersoll Rand's Road Development division manufactures and sells asphalt paving equipment, compaction equipment, milling machines, and construction-related material handling equipment. It had 2006 revenue of approximately $850 million. The sale includes manufacturing facilities in Shippensburg and Letterkenny, Pa.; Hameln, Germany; Wuxi, China; and Bangalore, India, as well as the 20 existing dealer relationships in the United States.

"The Road Development business has been a strong contributor to Ingersoll Rand's success for several decades and remains an industry leader with dedicated and talented employees," said Herbert L. Henkel, president and CEO. "However, the business' markets and products do not fit within our transformed portfolio of diversified industrial businesses. I am confident that Road Development will benefit by joining a company sharing similar competencies and offering complementary products and services. We are pleased to have entered into this agreement with Volvo, which represents a strong strategic buyer for the business."

"Strategically, the acquisition of Ingersoll Rand Road Development fits exceptionally well with Volvo's current operations within motor graders and positions Volvo as a full-rang manufacturer of heavy road construction equipment," said Tony Helsham, president of Volvo Construction Equipment.

Amidst considerable concern about the future of existing Ingersoll Rand dealer relationships, particularly in locations where there are existing Volvo dealers, Faris Machinery Co. in Colorado has added the new Ingersoll Rand milling machines to its line of products available to customers.

Ingersoll Rand offers two milling machines, the MW-500 and the MT-2000. The MW-500 is a four-wheel, rear-loading, utility-class machine with a standard cutting width of 19.69 inches. With the larger MT-2000, Ingersoll Rand brings innovation to milling equipment through exclusive features that increase productivity, serviceability and overall safety. Features of the MT-2000 include three cutting speeds, five steering modes and a walk-in engine compartment.

"Ingersoll Rand has always stood behind their products with support, parts and service, so we're confident that the company will support the milling machines just as they have for asphalt pavers and compactors," said Giles Poulson, president of Faris Machinery Company. "We are looking forward to bringing Ingersoll Rand milling machines to our customers."

In addition to milling machines, Faris Machinery carries a wide range of Ingersoll Rand equipment, including air compressors, light towers, mobile environmental generators, asphalt and soil compactors, light compaction equipment, and asphalt pavers. Faris is based in Commerce City, Colo., and also serves customers through locations in Colorado Springs and Grand Junction. In Commerce City, Faris Machinery Company is located at 5770 E. 77th Avenue and can be reached by phone at (303) 289-5743. The Colorado Springs branch is located at 2269 Commercial Boulevard and can be reached by phone at (719) 527-1016. The Grand Junction branch is located at 772 Valley Court and can be reached by phone at (970) 242-4997.