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Oshkosh Truck Awarded Defense Truck Contract with $1 Billion Potential Value

OSHKOSH, WIS. (March 30, 2001) – Oshkosh Truck Corporation [NASDAQ: OTRKB], a leading manufacturer of trucks and truck bodies, announced today the U.S. Army Tank Automotive and Armaments Command awarded the company a Family of Heavy Tactical Vehicles contract. This five-year contract has a potential value of more than $1 billion, if all delivery orders are exercised.

This “family” contract combines several heavy truck models into a single contractual framework to improve contract management efficiencies for the U.S. government. To improve operating, support and life cycle costs, this contract allows Oshkosh to integrate product improvements and new technologies into all models during the life of the contract.

“This contract reflects a partnership between government and industry. We’re working together to deliver the best, long-term value for our armed forces. This major order means continued growth for the company, and it allows us to leverage our manufacturing planning system and technology development, which results in further efficiencies that benefit our

customer, and the Army’s transformation,” said Robert G. Bohn, Oshkosh’s chairman, president and chief executive officer.

The family contract covers the following:

  • New Heavy Expanded Mobility Tactical Trucks (HEMTTs). Since 1982, the company has produced nearly 16,000 of these C-130 air transportable trucks for the U.S. Army and friendly foreign countries.
  • New HEMTTs with Load Handling Systems (LHS). This 11-ton capacity truck features a unique cargo loading arm which allows the truck to be loaded and unloaded without additional material handling equipment. The HEMTT-LHS is a key element of the Army’s transformation initiative, which calls for lighter, rapidly C-130 deployable forces that can respond quickly to developing regional conflicts.
  • New Palletized Load System (PLS) vehicles and trailers. Since the first PLS rolled off Oshkosh’s production line in 1992, Oshkosh has produced nearly 3,500 units.
  • New Heavy Equipment Transporters (HETs). Oshkosh also began manufacturing HETs in 1992 and has built 2,200 to date.
  • Extended Service Program HEMTTs. Oshkosh’s remanufacturing program has been in place since 1996. The program provides bumper-to-bumper warranties and upgrades older models to current specifications at a significant cost savings compared to a new vehicle purchase.
  • Interactive electronic technical manuals. These allow Army mechanics to use a laptop for vehicle diagnostics.

Oshkosh Truck Corporation [NASDAQ: OTRKB] 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, Pierce, McNeilus and Medtec brand names. The company is headquartered in Oshkosh, Wis., and had annual sales of $1.324 billion in fiscal 2000.