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Oshkosh Defense Awarded $9.4 Million Contract Modification for Research and Development of Its Next-Generation HEMTT A3

OSHKOSH, Wis. — Dec. 15, 2008 — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), has been awarded a contract modification with the U.S. Army Tank-automotive and Armaments Command (TACOM) for continuing research and development of the Heavy Expanded Mobility Tactical Truck (HEMTT) A3 variant.

Valued at $9.4 million, the contract modification includes additional improvements to the current HEMTT A3 technology demonstrator to provide an operationally complete and fully equipped vehicle for the U.S. Army. Oshkosh engineers will upgrade the vehicle’s engine horsepower and incorporate a U.S. Army Long-Term Armor Strategy (LTAS) compliant integral lightweight composite armor (“A” kit) and add-on lightweight composite armor appliqué (“B” kit) to improve crew protection.

“These are among the first steps that could establish the HEMTT A3 as the Army’s next-generation support vehicle,” said John Stoddart, Oshkosh Corporation executive vice president and president, Defense. “Featuring Oshkosh’s signature ProPulse® hybrid system, TAK-4® independent suspension, and the Enhanced Load Handling System, the HEMTT A3 combines the durability of the proven HEMTT vehicle with the advanced technology needed for tomorrow’s missions.”

The contract modification also will result in the production of two new HEMTT A3 vehicles, one of which will be provided to the U.S. Army for a 20,000-mile durability test at its Aberdeen Test Center. The second vehicle will be used for performance-capability testing of the HEMTT A3 against its current HEMTT A2/A4 production vehicles.

The HEMTT A3 was designed to help transform the Army’s tactical vehicle fleet and support modularity. It features advanced vehicle technology and a 13-ton payload capacity, making it ideally suited for the U.S. Army’s logistics support missions. Oshkosh’s ProPulse hybrid technology improves the vehicle’s fuel efficiency by at least 20 percent compared to other HEMTT models while an on-board generator exports 100 kW of military-grade power. The HEMTT A3 also is capable of loading and unloading C130 aircraft without the need for additional material handling equipment. These features reduce the vehicle’s logistics footprint, increase its mobility and provide new capabilities to the warfighter.

About Oshkosh Defense

Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit oshkoshdefense.com.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corp. manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, BAI®, Oshkosh Specialty Vehicles, Frontline™, SMIT™, Geesink™, Norba™, Kiggen™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, log on to www.oshkoshcorporation.com.

• ProPulse and TAK-4 are registered trademarks of Oshkosh Corporation.

Forward-looking Statements

This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital spending and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “should,” “expects,” “intends,” “estimates,” “anticipates,” or “believes” and similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the consequences of the Company’s financial leverage position, especially given recent turmoil in the credit markets, and the level of associated borrowing costs; the Company’s ability to maintain compliance with financial covenants in its credit agreement; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global economic downturn and credit crisis; the Company’s ability to offset higher steel and raw material costs through other cost decreases or product selling price increases; risks related to reductions in government expenditures and the uncertainty of government contracts; risks associated with international operations and sales, including foreign currency fluctuations; and the Company’s ability to turn around its Geesink Norba Group business. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission.