Allison Transmission, Inc., Reveals Plans to Construct New State-of-the-Art Manufacturing Facility in Hungary

During a 10-year manufacturing anniversary celebration in Hungary, Allison Transmission revealed plans to build a new manufacturing facility. The new facility is expected to produce 3000, 4000 and Torqmatic(R) Series fully automatic transmissions for the company's European and International customers.

SZENTGOTTHARD, Hungary, September 21, 2010 - Allison Transmission, Inc., the premier global provider of commercial and
military-duty automatic transmissions and hybrid systems, announced its plans
to build a new state-of-the-art manufacturing plant in Szentgotthard,
Hungary.

    (Photo: photos.prnewswire.com/prnh/20100921/CL67453-a )
    (Photo: www.newscom.com/cgi-bin/prnh/20100921/CL67453-a )

    (Photo: photos.prnewswire.com/prnh/20100921/CL67453-b )
    (Photo: www.newscom.com/cgi-bin/prnh/20100921/CL67453-b )

Following both corporate and local governmental approvals for the new
manufacturing facility, Allison Transmission intends to move quickly in order
to launch the project as soon as possible. The land for the new facility was
officially acquired yesterday, and company executives and Allison invited
guests conducted a ground breaking ceremony today in preparation for
construction.

"The construction of a new manufacturing facility in Szentgotthard,
Hungary, will allow Allison products to be assembled by the same skilled
workforce which has brought us benchmark levels of quality that have been
recognized throughout the transportation industry," said David Parish,
Allison Transmission Vice President of Operations. "Our decision to expand
our operations in Hungary benefits everyone who uses our products," Parish
added.

Allison Transmission has benefited from a 10-year manufacturing
relationship with Opel Hungary in Szentgotthard, Hungary, where it developed
successful production collaborations during the late 1990's. Initially,
workers in Hungary co-produced Allison Torqmatic(R) and 3000 Series fully
automatic transmissions, which are widely used in city buses, and in
construction, distribution, pickup and delivery, fire and emergency, terminal
tractor, shuttle, utility, refuse, wheeled military and other applications.
In 2005, increasing worldwide demand for Allison products resulted in the
company expanding its Hungarian operations. Co-production of the 4000 Series
transmission began that same year.

Allison Transmission continues to grow as a result of its increasing
market share. In May of this year, Allison announced the completion of a new
203,000-square-foot manufacturing plant and regional headquarters in Chennai,
India. Allison Transmission's growth in India has been propelled by fitting
automatic transmissions into low-floor CNG and diesel buses in Delhi, Mumbai,
Bangalore, Chennai, Hyderabad, Nagpur and other Indian cities.

About Allison Transmission, Inc.

Allison Transmission, Inc. (Allison) is the premier global provider of
commercial duty automatic transmissions and hybrid propulsion systems.
Allison products are specified by over 250 of the world's leading vehicle
manufacturers and are used in many market sectors including bus, refuse,
fire, construction, distribution, military and specialty applications.
Founded in 1915, the Allison business is headquartered in Indianapolis,
Indiana, U.S.A. and employs 3,000 people. Regional headquarters with
dedicated support staff are located in China, The Netherlands, Brazil, India
and Japan. With a global presence in 80 countries, Allison has over 1550
distributor and dealer locations. More information about Allison is available
at www.allisontransmission.com.

Eric Dickerson, +1-317-242-2688, eric.dickerson at allisontransmission.com or Melissa Sauer, +1-317-242-3855, melissa.sauer at allisontransmission.com