PACCAR Announces Long-Term Supply Agreement with Cummins

    BELLEVUE, Wash.--Feb. 12, 2001--PACCAR Inc announced today that it has entered into a long-term supply agreement with Cummins, Inc. covering the heavy-duty ISX, Signature, N14, ISM and ISL engine models. In a separate agreement, Cummins became the supplier to PACCAR's European subsidiary, DAF Trucks, for medium-duty engines for the recently introduced DAF LF Series trucks.
    "This supply agreement reflects the industry trend towards closer cooperation between OEMs and engine suppliers to provide enhancements towards improved vehicle performance. The impact of 2002 emission regulations and the benefits to customers of providing a more integrated powertrain are key elements in the strategic alliance," said Gary Moore, PACCAR senior vice president, and Joe Loughrey, Cummins executive vice president.
    PACCAR, a $7.9 billion company, is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, DAF and Foden nameplates. It also provides financial services and distributes truck parts related to its principal business. In addition, the Bellevue, Washington-based company manufactures winches under the Braden, Gearmatic and Carco nameplates.
    PACCAR shares are traded on the Nasdaq Stock Market, symbol PCAR, and its homepage can be found at www.paccar.com.
    Cummins Inc. (www.cummins.com), headquartered in Columbus, Ind., provides products and services for customers in markets worldwide for engines, power generation and filtration. Cummins is also the world's largest producer of diesel engines above 200 horsepower.