For questions contact:

Michael Cohen

Marketing Communications

Phone: 281-292-1690

Fax: 281-292-3998

Email: mcohen@royaleq.com

FOR IMMEDIATE RELEASE

ROYAL EQUIPMENT EXPANDS OPERATIONS IN AUSTRALIA

THE WOODLANDS, Texas – January 13, 2004 – Royal Equipment, Inc., a leading provider of warranted, remanufactured heavy equipment components and spare parts for the surface mining industry, today announced the creation of an Australian subsidiary, Royal Equipment Pty Ltd, and the addition of Shane Halliwell as manager of sales and operations. Shane will run the company’s operations in Australia.

“The creation of this subsidiary reinforces our commitment to business in Australia,” stated David A. Kintigh, Chief Operating Officer for Royal Equipment. “In the past year we’ve done more than a million dollars in sales to major mines in Australia. With this growing business, a local presence is a logical next step for us and we are very pleased to have Shane join us. Shane’s experience and accomplishments in the surface mining industry make him an ideal choice; he will help us serve the Australian market with a focus on, and commitment to, customer satisfaction.”

Most recently Shane held the position of branch manager for Belford Engineering where he led day-to-day operations. Prior to Belford, Shane’s extensive career included positions with Liebherr Australia, P&H Harnischfeger of Australia, Mobil Australia Technical Services, and other mining equipment companies.

About Royal Equipment

Royal Equipment is a Global supplier of warranted, remanufactured heavy equipment components and parts for the surface mining industry and specializes in GE drive systems found in haul trucks, shovels, and loaders. With its extensive inventory, Royal Equipment supports OEM product lines from manufacturers such as Bucyrus/Erie, Hitachi, Komatsu/Haulpak, LeTourneau, Liebherr/Wiseda, Marion, P&H, Unit Rig, and O&K. Royal Equipment provides customers with alternatives to the high capital costs of new equipment and spare parts by offering remanufactured, new-surplus, and pre-owned products; delivering quality products with a focus on customer service. To learn more about the products offered by Royal Equipment, please visit www.royaleq.com.

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