Oshkosh Announces Improved EPS and Debt Reduction Expectations for Fiscal Fourth Quarter

OSHKOSH, Wis., Sept. 26, 2008 - Oshkosh Corporation, a leading manufacturer of specialty vehicles and vehicle bodies, announced today that it expects to report earnings per share EPS for its fourth fiscal quarter ending September 30, 2008 at or above the higher end of its previously announced EPS estimate range of $0.50 to $0.65. Furthermore, Oshkosh expects to reduce its debt to $2.80 - $2.85 billion at September 30, 2008 compared to its previous expectations of $2.85 - $2.90 billion due to cash flow from earnings and working capital initiatives.

“During the last several months, we have improved our cost structure by downsizing our workforce approximately 10% and lowering discretionary spending. We have been reducing our working capital by selling excess inventory, rationalizing production and pursuing receivables initiatives. These swift and decisive actions should help us to remain competitive in fiscal 2009,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer.

“Our ability to generate strong cash flow from earnings and working capital initiatives has driven better than anticipated debt reduction in the fourth quarter, and we expect to exit fiscal year 2008 with debt in the range of $2.80 - $2.85 billion,” said Bohn. “With a defense business that we believe will grow, and a sharper focus on cash flow generation, we expect to drive significant cash flow and debt reduction in fiscal 2009 in spite of challenging market conditions and exit fiscal 2009 with a stronger balance sheet.”

The Company has a policy that if the Company makes a determination that it expects the Company’s earnings per share for future periods to be at or above its disclosed projections, then the Company does not publicly disseminate that fact. Today’s announcement is an extraordinary exception to that policy in light of existing market conditions. The Company expects to release fiscal fourth quarter and full-year 2008 results on November 3, 2008 and plans to discuss its expectations for fiscal 2009 at that time.