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Oshkosh Truck Receives Approval To Begin Full-Rate Marine Corps Truck Production; Receives $266 Million Contract Modification

OSHKOSH, WIS. (April 16, 2001) – Oshkosh Truck Corporation [NASDAQ: OTRKB], a leading manufacturer of specialty trucks and truck bodies, announced that the company has received approval for full-rate production of the Medium Tactical Vehicle Replacement (MTVR) truck, which is being built for the U.S. Marine Corps. The company also received a contract modification, valued at $266 million, to fund base requirements of the third year of the multiyear program.

This approval, known by the U.S. military as Milestone III, allows Oshkosh to ramp up to full-rate production of the MTVR immediately, increasing from a current rate of 60 to more than 140 vehicles per month. Initial low-rate production began in September 1999 on Oshkosh’s flexible production line at their state-of-the-art manufacturing facilities in Oshkosh, Wis. Both military and commercial vehicles are produced on the flexible line. The MTVR contract was awarded to Oshkosh Truck in December 1998 and has a potential value of $1.2 billion through fiscal year 2005.

“Reaching Milestone III early is another major corporate accomplishment, and we are very proud of the high standards the MTVR has met and exceeded. Reaching this approval earlier than the contract required reflects so well on our commitment and product quality, something all of us here take very seriously,” said Robert G. Bohn, Oshkosh’s chairman, president and chief executive officer.

Bohn continued, “The MTVR’s incredible performance was achieved through teamwork with the U.S. Marine Corps and the U.S. Army, the Marines Executive Agent. We’re proud of the role we play in making the U.S. Marines a ready fighting force our country can depend on. We consider MTVR the most mobile, capable truck in the world. On-road and off-road, this truck has proven its metal.”

Milestone III approval follows the successful completion of the government-run test and evaluation process, during which the MTVR demonstrated approximately five times the Marine’s reliability requirements. The truck achieved a mean test rate of more than 10,000 miles between operational hardware mission failures compared with the requirement rating of 2,000 miles. Strenuous on-road and off-road testing was conducted at Camp Pendleton, near San Diego, and 29 Palms Marine Corps Base, Calif.

The MTVR tested better than any other defense tactical vehicle with a largely off-road mission profile. The vehicle demonstrated its ability to meet all performance requirements, such as 22-year corrosion resistance, 60 percent grade-climbing ability, 125 degrees Fahrenheit ambient cooling capacity, cold temperature starting at –50 degrees Fahrenheit, and more. The MTVR’s main mission profile calls for it to perform 70 percent of the time off road and 30 percent on road.

Fastest Off-Road Truck

Oshkosh’s three-axle, all-wheel-drive MTVR is built on 21st Century technology. Rated for payloads of approximately seven tons off road and 15 tons on primary roads, the MTVR is designed to traverse terrain that was previously regarded impassible by other trucks.

The new MTVR can run with any ground-based military vehicle in the field, even keeping up with the M1A1 tank. Carrying personnel and supplies for battle, or food and emergency supplies in peacekeeping missions, the MTVR will fill the transportation mobility requirements of the U.S. Marine Corps.

The MTVR features the Oshkosh patented TAK-4™ modular independent suspension system, axle and transfer case. The truck can haul personnel and material up 60-percent grades; ford creeks as deep as 60 inches; travel through deep mud, sand and snow; and can reach 65 miles per hour on the highway.

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.