Exh. 99.1

News Release

SOURCE: Harnischfeger Industries, Inc.

                HARNISCHFEGER INDUSTRIES "POST REORGANIZATION"
                   TO BEGIN TRADING ON A "WHEN ISSUED" BASIS

MILWAUKEE, WI - May 24, 2001 - Harnischfeger Industries, Inc. ("HII" or the
"Company") today announced that it expects that The National Association of
Securities Dealers Automated Quotation System ("NASDAQ") will open trading on or
about May 25, 2001 in a security that relates to the stock to be issued by the
Company (post reorganization):

     .  The Company (post reorganization) will begin trading on a "when issued"
        basis under the symbol "HFIIV" on NASDAQ's over-the-counter ("OTC"),
        bulletin board. This security is expected to trade on this basis until
        "regular trading" begins in the new (post reorganization) shares.

     .  The new common stock (post reorganization) is expected to be distributed
        to the Company's creditors approximately thirty to sixty days following
        the reorganization plan's effective date, and regular trading of the
        security is expected to commence on the NASDAQ market following the
        distribution of the shares.

Fifty million new (post reorganization) shares of stock will ultimately be
distributed to the Company's creditors. However, because various claims filed
against the Company will remain unresolved at the time of the first distribution
of new stock, the Company expects only 70% to 90% of the stock to be distributed
initially. Until all claims against the Company are resolved, a certain amount
of the new (post reorganization) shares of stock will be held back from each
distribution to ensure that each holder of an allowed claim will receive the
same pro rata share of the stock.

On May 21, 2001, the Company announced that the United States Bankruptcy Court
confirmed the Company's plan of reorganization, clearing the way for the Company
to emerge from bankruptcy. The effective date for the Company's emergence is
expected to be shortly after May 29, 2001, the date the Bankruptcy Court order
confirming the Company's plan of reorganization becomes final and nonappealable.
The Company must also close on its exit financing facility before it can
formally emerge. Under the plan, existing HII common stock, which has been
trading OTC, bulletin board, under the symbol HRZIQ, will be cancelled as of the
plan's effective date and the holders of that stock will receive no distribution
in cash or new stock.

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All statements in this news release other than historical facts are forward-
looking statements which involve risks and uncertainties and which are subject
to change at any time. Such statements are based on management's expectation at
the time they are made. In addition to the assumptions and other factors
referred to in connection with the statements, factors set forth in the
Company's latest Form 10-K or 10-Q filed with the Securities and Exchange
Commission, among others, could cause actual results to differ materially from
those contemplated.

Harnischfeger Industries, Inc. is a global company with business segments
involved in the manufacture and distribution of equipment for surface mining
(P&H Mining Equipment) and underground mining (Joy Mining Machinery).