OSHKOSH, Wis. (June 1, 2006) – Oshkosh Truck Corporation (NYSE:OSK) announced today that the U.S. Marine Corps has awarded the company a production contract for the new Logistics Vehicle System Replacement (LVSR) truck and associated manuals, vehicle kits, test support, and training. The firm-fixed-price indefinite-delivery / indefinite-quantity contract has an estimated value of $740.2 million based on a production quantity of 1,592 units. The Corps can purchase a maximum quantity of 1,900 cargo, wrecker and fifth-wheel LVSR variants over the next six years under this contract.
Primarily used for transporting supplies such as ammunition, fuel, water, and heavy equipment, the LVSR will replace the original Oshkosh Logistics Vehicle System (LVS) trucks, which have been in the Marine Corps’ fleet since 1985. The LVSR is a technologically advanced, highly mobile, heavy-payload truck that carries 33,000 lbs. off-road.
“For more than 20 years, the original Oshkosh LVS vehicles have served the Marine Corps well during training missions as well as during combat operations in Afghanistan and Iraq,” said Robert G. Bohn, Oshkosh’s chairman, president and chief executive officer. “We have moved the performance capabilities of the LVS fleet a generational step forward. We’re proud to have met the Marine Corps’ stringent requirements to produce the next generation of heavy payload logistics vehicles with one of the world’s most technologically advanced logistics platforms.”
Expanding on the proven reliability and functionality of the current Marine Corps heavy payload fleet, the LVSR truck fleet incorporates new technology and features that increase the truck’s capabilities and can reduce life-cycle costs.
- Improved survivability — Factory installed armor integrated into the vehicle’s design enhances crew safety. The LVSR is also ready to accept additional add-on armor. Mounting points and hardware come factory-installed, reducing the time required to increase armor capability prior to deployments.
- Improved mobility —The LVSR suspension incorporates Oshkosh’s TAK-4® independent suspension system, as well as its proprietary mechanical rear-steer technology for improved mobility and off-road capability.
- In-cab vehicle diagnostics — Oshkosh’s Command Zone™ advanced electronics system comes standard on all LVSR vehicles. It will allow the driver to monitor critical systems such as engine, transmission, brakes, central tire inflation and other electrical components.
- Increase performance — A 600 hp engine and advanced suspension drive the LVSR to speeds of 65 mph on-highway and 40 mph in cross-country mode, with its 33,000 lbs. payload.
- Simplified maintenance — The LVSR has been designed to use a single lubricant instead of separate lubes for the engine oil, transfer case, hydraulics and transmission so maintenance is simplified.
The LVSR complements the Oshkosh medium tactical vehicle replacement (MTVR) used by the U.S. Marine Corps for off-road transport of supplies and equipment. The two vehicles — LVSR and MTVR — share a comprehensive logistics network, common parts and similar maintenance training, which provide the Marine Corps with opportunities to streamline vehicle service and support.
“We stand by our vehicles from the time they leave the assembly line, to wherever their mission might take them — and back,” said Bohn. “Oshkosh Truck’s comprehensive logistics and service network is unmatched in the industry. We are committed to providing our customers with vehicles designed with maintenance and long-term support in mind.”
About Oshkosh Truck Corporation
Oshkosh Truck Corporation (NYSE:OSK) is a leading manufacturer of specialty trucks and truck bodies for the defense, fire and emergency, concrete placement and refuse hauling markets. Oshkosh Truck is a Fortune 1000 company with products marketed under the Oshkosh(R), Pierce(R), McNeilus(R), Medtec(TM), Geesink(R), Norba(R), Jerr-Dan(R), BAI, CON-E-CO(R) and London(R) brand names. The company is headquartered in Oshkosh, Wis., and had annual sales of $2.96 billion in fiscal 2005.
For more information about Oshkosh Truck Corporation, log onto the company web site at www.oshkoshtruckcorporation.com.
Forward-Looking Statements
This press release contains statements that the company believes are “forward-looking statements” within the meaning of the U.S. 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 the company “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, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, without limitation, risks related to reductions in government expenditures, the uncertainty of government contracts, risks related to the Company’s acquisition strategy including identifying and evaluating acquisition candidates and integrating acquired businesses, and the possibility that expected synergies and other cost savings will not be achieved nor future plans realized. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission.
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