Joy Global tenders for 8¾% notes

New York, May 18 - Joy Global Inc. said it has begun a tender offer for all its 8¾% senior subordinated notes due 2012.

The Milwaukee manufacturer of mining equipment is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and other restrictions.

Holders who tender must consent to the amendments and vice versa.

The tender is subject to Joy Global receiving sufficient consents to amend the notes and obtaining the necessary funding.

The consent solicitation ends at 12 p.m. ET on May 31, and the tender ends at midnight ET on June 15. Holders who tender by the consent deadline will receive the consent payment of $30.00 per $1,000 principal amount.

Pricing in the tender will be based on a fixed spread of 50 basis points over the yield to maturity on the bid-side price of the reference security, the 3 3/8% U.S. Treasury note due Feb. 28, 2007, at 10 a.m. ET on May 31. If the offer is extended pricing will be set 10 business days before expiration.

Joy Global will also pay accrued interest up to but excluding the date of payment.

Deutsche Bank Securities is dealer manager and solicitation agent (contact Liability Management Group at 866 627-0391 or call collect 212 250-2955). Global Bondholder Services Corp. is information agent and tender agent (866 470-3700).

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