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Oshkosh Truck Tank Transporters Selected by United Kingdom Ministry of Defense for Major Contract

OSHKOSH, WIS. (January 24, 2001) – Oshkosh Truck Corporation [NASDAQ: OTRKB] announced today that its Heavy Equipment Transporter (HET) system will be used by the United Kingdom Ministry of Defense (MoD). The MoD has selected FASTTRAX, a consortium led by Halliburton Brown & Root Services, as the preferred bidder for a 20-year Private Finance Initiative (PFI), to transport the British Army’s heavy equipment. The FASTTRAX contract is worth more than $440 million (Œ£300m) over the 20-year period.

FASTTRAX will use the Oshkosh HET system, including a European derivative of the combat-proven M1070 tractor and a technologically advanced trailer specially designed and built in the United Kingdom by King Trailers Limited of Market Harborough for transporting the Challenger 2 tank. Oshkosh will subcontract the trailers to King Trailers.

The initial production quantity will be 92 tractor/trailer systems, with options for 28 additional systems. The contract value for Oshkosh is approximately $75 million, with potential for $95 million if all options for HET systems and trailers are exercised.

“This is an example of how Oshkosh’s engineering and manufacturing expertise breathed new life and value into heavy equipment transportation. We took the combat-proven performance and reliability of the M1070 HET and fused it with leading-edge technology to meet British requirements. As a result, we reached a new milestone in performance and versatility, while offering the customer excellent value,” said Robert G. Bohn, chairman, president and chief executive officer of Oshkosh Truck Corporation.

Under the contract, FASTTRAX will supply trucks and trailers to transport the British Army’s heavy equipment. The consortium will also provide tank and heavy equipment transportation services, including some drivers who are sponsored reserves, maintenance and logistics services, for the British Army worldwide.

The HET contract is considered a “Pathfinder” PFI project, that includes the provision of service based on one-third sponsored reserves.

The Oshkosh eight-wheel drive M1070 HET trucks built for the U.S. Army bring increased payload and mobility to the military mission. Employed with the U.S. Army worldwide, including Bosnia, the U.S. Army currently has over 1,600 Oshkosh HETs fielded. The King Trailer seven axle, hydraulic suspension steering trailer is specifically designed to operate with the Oshkosh M1070 to carry battle tanks up to 158,731 pounds (72 metric tons) or two lighter armored vehicles. This tractor/trailer system is designed to meet European requirements.

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.