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Oshkosh Truck Corporation Partners with ABRO on Ministry of Defence Programmes

June 17th 2002

Oshkosh Truck Corporation [Nasdaq: OTRKB], one of the world’s leading defence truck manufacturers, and ABRO, (formerly the Army Base Repair Organization), jointly announce that they have agreed to partner on the Ministry of Defence’s (MOD) Future Support Vehicle requirement. Oshkosh have been invited to submit a tender on June 25 for this requirement that includes 8,000 six-tonne medium-light cargo vehicles, nine-tonne medium trucks and 15-tonne heavy cargo vehicles that will meet the UK Armed Forces’ logistics needs over the next 20 years. The first of the trucks is expected to be delivered for trials in 2005.

Under the partnership agreement ABRO will assemble cargo bodies, provide vehicle integration and deliver the in-service support and associated functions on Oshkosh’s proposal for the Future Support Vehicle contract. In addition, Oshkosh would transfer vehicle production technology and processes to ABRO. If successful in winning this MoD project, this agreement will result in approximately 100 posts being secured within ABRO, the majority of which will be at their site in Warminster, Wiltshire. Oshkosh would produce the majority of the chassis by expanding facilities and employment at its Llantrisant facilities near Cardiff in South Wales where the company already employs 128 people. Company officials expect employment at Llantrisant would expand dramatically as well. These expansion plans are just one element of Oshkosh’s long-term commitment to the United Kingdom. Oshkosh’s U.K. operations are an ideal base for further expansion in commercial and military product sales throughout Europe.

“We’re very proud to be teamed with such an experienced, respected organization as ABRO for this tender. They have unparalleled expertise in supporting military vehicles for the U.K. Armed Forces,” said Robert G. Bohn, Oshkosh’s Chairman, President and Chief Executive Officer.

“Oshkosh is absolutely committed to an expanded presence in the U.K. and to providing the MoD with the highest quality and best value in defence trucks that meet their requirements. Working with ABRO helps us deliver on both of these commitments,” continued Bohn.

Mike Hayle, ABRO’s Chief Executive added, “This partnership is a major breakthrough bringing together the world-class professionalism and engineering experience of Oshkosh, one of the world’s premier defence truck manufacturers, and ABRO’s unique knowledge of vehicle maintenance and repair services. The synergy delivers benefits to not only Oshkosh and ABRO but the British soldier and taxpayer.” He went on to say, “I hope that this programme will act as a springboard for many future collaborative projects.”

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, without limitation, 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 “may,” “will,” “expects,” “intends,” “estimates,” “anticipates,” “believes,” “should,” or “plans” or the negative thereof or variations thereon or similar terminology 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 the cyclical nature of the company’s commercial and fire and emergency markets, risks related to reductions in government expenditures, the uncertainty of government contracts, the challenges of identifying, completing and integrating future acquisitions, disruptions in the supply of parts or components from sole source suppliers and subcontractors, competition, and risks associated with international operations and sales, including foreign currency fluctuations. In addition, the company’s expectations for fiscal 2002 are based in part on certain assumptions made by the company, including those relating to fiscal 2002 concrete placement activity, the performance of the U.S. and European economies generally, when the company will receive sales orders and payments, achieving cost reductions, sales and margin levels under the MTVR contract and defense programs, capital expenditures of municipalities and commercial waste haulers, sales and operating income of the Geesink Norba Group, expected debt levels and interest rates, and assuming no acquisitions in fiscal 2002. The inaccuracy of these or other assumptions could have a material adverse effect on the company’s ability to achieve the company’s expectations. Additional information concerning these and other factors is contained in the company’s filings with the Securities and Exchange Commission, including the Form 8-K filed April 25, 2002.


Oshkosh was founded in 1917 and has been building defence trucks since World War II. Today, the company is the premier manufacturer of medium- and heavy-payload tactical trucks in the world. Oshkosh vehicles have proven their value and performance for the U.S. Department of Defense and many other governments in military operations across the globe, including Afghanistan, Bosnia, the Middle East, the Far East and the United States. In 2001, the company was selected to build the new fleet of tank transporters for the British Army. The first unit is currently in approval testing, and deliveries are scheduled to begin later this year.

Oshkosh Truck Corporation is a leading manufacturer of specialty trucks and truck bodies for the defence, fire and emergency, concrete placement and refuse hauling markets. Oshkosh Truck is a Fortune 1000 company with products marketed under the Oshkosh, Pierce, McNeilus, Medtec, Geesink and Norba brand names. The company is headquartered in Oshkosh, Wisconsin, USA, with major operations in the United Kingdom, Netherlands, Sweden and Mexico. Annual turnover was $1.45 billion in fiscal 2001.


ABRO is a Trading Fund within the MoD. It offers a global engineering, service, repair and re-manufacturing capability primarily to the British Army but also, emergency services and other governmental and non-governmental organisations.

ABRO’s capabilities range from small arms to main battle tanks, and binoculars to thermal imaging equipment. Operating from a range of eight strategically located sites ABRO employs a dedicated workforce of approximately 2,700 handling an annual turnover of work in excess of Œ£246 million.