IN THIS REPORT:                                         REPORT OVERVIEW:

DEERE & COMPANY OVERVIEW
EXECUTIVE SUMMARY

   OUTLOOOK

OPERATING RESULTS

   Sales Analysis
   Employment
   Manufacturing
   Marketing and Distribution
   Corporate Leadership

DEERE'S CORPORATE STRATEGY

   Alliances

PRODUCT ANALYSIS

   North American Machinery Sales
   North American Machinery Production

Agricultural Equipment

   Farm Tractors
   Harvesting Combines
   Other Ag Equipment & Implements

Construction Equipment

   Articulated Haulers (Dump Trucks)
   Backhoe Loaders
   Compact Track Loaders
   Crawler Dozers
   Crawler Loaders
   Hydraulic Excavators
   Mini Excavators
   Motor Graders
   Motor Scraper Bowls
   Skid Steer Loaders
   Wheel Loaders
   Forestry Equipment
   Telehandlers
   Parts Operations

Deere & Company is one of the oldest industrial companies in the United States. It was founded in 1837 as a one-person blacksmith shop. Today, it does business in more than one hundred countries worldwide, manufactures products in eighteen countries, and employs 56,700 people worldwide. The company is organized under two broad segments: equipment operations and financial services. Deere & Company markets its products through a worldwide network of independent dealers supported by a decentralized marketing organization.

John Deere has been the world's largest producer of agricultural equipment since 1963 and is a leading producer of construction and forestry equipment. The company and its subsidiaries (collectively called John Deere) manufacture, distribute, and finance a full line of agricultural equipment; a broad range of construction and forestry equipment, and a variety of commercial and consumer equipment. It also is a significant supplier of parts for its own products as well as for other manufacturers. The company also provides credit plans for businesses and the general public.