Deere & Company Announces the Tender Offer Consideration for its Debt Tender Offer

MOLINE, Ill., March 20 /PRNewswire-FirstCall/ -- Deere & Company today announced the applicable reference yields and tender offer consideration for the notes to be purchased in its previously announced offer (the "Tender Offer") to purchase a portion of its debt securities specified in the table below, subject to a total purchase price of $500 million, excluding accrued interest, fees and expenses. The full terms and conditions of the Tender Offer are set forth in Deere's Offer to Purchase dated February 23, 2006 (the "Offer to Purchase").

The full tender offer consideration for each series of notes subject to the Tender Offer is based on the applicable reference yield plus a fixed spread, each as set forth in the table below. The applicable reference yields were determined today at 2:00 p.m., New York City time, by the Joint Dealer Managers. The late tender offer consideration, as set forth in the table below, is the applicable full tender offer consideration minus the applicable early tender premium. All payments for notes accepted for purchase in the Tender Offer will include accrued and unpaid interest, as set forth in the table below, on the principal amount tendered up to, but not including, the settlement date for the Tender Offer, which is currently expected to be March 24, 2006, unless extended.

Late Full Tender Accrued Tender Offer Offer Interest Consideration Consideration per Reference Fixed per $1,000 per $1,000 $1,000 U.S. Spread Principal Principal Principal Title of Treasury Reference (basis Amount Amount Amount Security Security Yield points) of Notes of Notes of Notes 8.95% 4.000% 4.630% 35 $1,116.81 $1,091.81 $24.61 Debentures due due 2019 6/15/09 7.85% 3.875% 4.643% 40 $1,103.65 $1,078.65 $28.13 Debentures due due 2010 5/15/10 8 1/2% 5.375% 4.794% 65 $1,320.85 $1,285.85 $17.71 Debentures due due 2022 2/15/31 8.10% 5.375% 4.794% 70 $1,346.04 $1,311.04 $29.03 Debentures due due 2030 2/15/31 7.125% 5.375% 4.794% 70 $1,220.00 $1,185.00 $4.16 Notes due due 2031 2/15/31

The amounts of each series of notes to be purchased in the Tender Offer will be determined based on the aggregate purchase price of each series of notes validly tendered and not validly withdrawn prior to 12:00 midnight, New York City time, on March 22, 2006, unless extended (the "Expiration Date"), in accordance with the priorities identified in the Offer to Purchase, subject in the case of the 7.85% Debentures due 2010 to a maximum principal amount purchased of $250,000,000.

Holders of notes subject to the Tender Offer who have validly tendered their notes on or before 5:00 p.m., New York City time, on March 8, 2006, (the "Early Tender Date"), and whose notes are accepted for purchase will receive the applicable full tender offer consideration. Holders of notes subject to the Tender Offer who validly tender their notes after the Early Tender Date and on or before the Expiration Date and whose notes are accepted for purchase will receive the applicable late tender offer consideration.

Deere has retained J.P. Morgan Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated to serve as Joint Dealer Managers and Global Bondholder Services Corporation to serve as the Depositary Agent and Information Agent for the Tender Offer.

Requests for documents and questions regarding the tendering of notes may be directed to Global Bondholder Services Corporation toll free at (866) 612- 1500 or collect at [phone]. Questions regarding the terms of the Tender Offer may be directed to J.P. Morgan Securities Inc. toll free at [phone] or Merrill Lynch, Pierce, Fenner & Smith Incorporated toll free at [phone] and banks and brokers at [phone].

This press release is not an offer to purchase or a solicitation of acceptance of the Tender Offer, which may be made only pursuant to the terms of the Offer to Purchase, as amended or supplemented. In any jurisdiction where the laws required the Tender Offer to be made by a licensed broker or dealer, the Tender Offer will be deemed made on behalf of Deere by one or more of the dealer managers or one or more registered brokers or dealers under the laws of such jurisdiction.

John Deere is the world's leading manufacturing of agricultural and forestry equipment; a leading supplier of equipment used in lawn, grounds and turf care; and a major manufacturer of construction equipment. Additionally, John Deere manufacturers engines used in heavy equipment and provides financial services and other related activities that support the core businesses.