Terex Corporation last week announced that its board of directors has authorized a stock buyback plan in which the company may purchase up to $200 million of Terex’ outstanding common shares through June 30, 2008. Purchase may be made at the company’s discretion from time to time in open market transactions at prevailing prices or through privately negotiated transactions as conditions permit.

Terex also announced that it would redeem all $200 million principal amount outstanding of its 9.25-percent senior subordinated notes due 2011, effective Jan. 15, 2007. Terex will pay holders 104.625 percent of the principal amount plus accrued and unpaid interest up to the redemption date, as set forth in the indenture for these notes. As of Sept. 30, 2006, the notes being called represented $200 million of Terex’ $792 million of long-term debt. These notes were originally issued in December 2001.

Ronald DeFeo, chairman and CEO of Terex, said, “Terex Corporation’s strong financial position enables us to implement this stock repurchase program. The decision to repurchase shares demonstrates our commitment to enhancing shareholder value and our confidence in the performance and future prospects of Terex.” DeFeo added, “In addition to implementing the share repurchase program, we are pleased that we will achieve our announced goal of prepaying $200 million in senior subordinated notes in January 2007. Based on the prospects of continued strong operating results and cash flow, we will continue to seek further enhance shareholder value through selective strategic initiatives.”