OSHKOSH, WIS. (April 1, 2003) — Oshkosh Truck Corporation [NYSE: OSK] and the United Kingdom Ministry of Defence (MoD) announced today that they have finalized a contract for the supply of 348 Wheeled Tankers for the British Armed Forces. The contract value is approximately $250 million and includes a mix of Tactical Aircraft Refuellers (15,000 litre), Close Support Tankers (20,000 litre), and Close Support Tankers (18,000 litre) for Water. The equipment portion of the contract is valued at approximately $230 million, with approximately 20 percent of sales expected in fiscal 2005, 50 percent expected in fiscal 2006 and 30 percent expected in fiscal 2007. Oshkosh is also responsible for maintaining and supporting the vehicles through their 15-year service life including spare parts supply, major maintenance work, training, and supply of manuals and publications. Oshkosh was selected as the preferred bidder for this program in January 2003.
“We are delighted to have signed this contract with the MoD and proud to serve the people of the UK by supplying this remarkable capability to the British Armed Forces. Oshkosh’s Wheeled Tanker is the highest performance tactical tanker available in the world. Its unmatched reliability, proven rugged performance and parts commonality offer excellent value for money to the MoD. It is ready to take British Armed Forces wherever the mission demands,” said Robert G. Bohn, Oshkosh’s chairman, president and chief executive officer.
“Delivering this contract will be an important part of our ongoing and long-term commitment to South Wales and our excellent workforce there, to the MoD and to Britain’s Armed Forces. It will also play a key role in our European expansion strategy which places further investment in the UK at its heart,” continued Bohn.
Oshkosh’s Wheeled Tankers will bring enhanced performance and maneuverability to the British Wheeled Tanker fleet, which is nearing the end of its operational life. The new fleet will significantly expand the MoD’s on- and off-road supply capabilities, allowing improved supply of fuel and water to the field. This is crucial to the MoD’s ability to carry out military operations worldwide. Oshkosh’s solution was highly technically responsive to the MoD’s requirements and is based on the MTVR chassis platform, which has a 70% off-road mission profile and has proven itself in combat and with the US Marine Corps, Navy and Seabees. MTVRs are currently serving in combat operations in Operation Iraqi Freedom.
Oshkosh is planning to build the Wheeled Tankers at the company’s manufacturing operations in Llantrisant, South Wales. The first vehicles are scheduled to be in-service in Spring 2005.
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®, Pierce®, McNeilus®, Medtec®, Geesink and Norba brand names. The company is headquartered in Oshkosh, Wis., and had annual sales of $1.74 billion in fiscal 2002.
For more information about Oshkosh Truck Corporation, log onto its web sites at www.oshkoshtruck.co.uk or www.oshkoshtruck.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. Additional information concerning these and other factors is contained in the company’s filings with the Securities and Exchange Commission. # # #
