Oshkosh Truck Receives $5 Million in Federal Research Funding for ProPulse Hybrid Electric Drive Technology

    OSHKOSH, Wis.--Feb. 25, 2003--Oshkosh Truck Corporation announced today that it has received two federal grants to further develop its ProPulse(R) hybrid electric drive technology for heavy trucks. The Department of Energy, acting through its National Renewable Energy Laboratory (NREL), has granted Oshkosh $4.5 million to share the costs of a three-year development effort that will focus on advanced heavy hybrid propulsion systems for refuse vehicles. In addition, the Department of Defense, through the National Automotive Center and U.S. Army Tank Automotive and Armaments Command, has awarded Oshkosh $500,000 in research grants for Oshkosh's development of a ready-for-production version of its ProPulse technology in military vehicles.
    "There is little doubt that hybrid electric drive technology will lead to the development of an entirely new generation of highly mobile and incredibly efficient trucks," said Robert G. Bohn, Oshkosh's chairman, president and chief executive officer. "These grants validate the confidence we have in our ProPulse technology, and chart a course for its integration into two enormously important sectors: refuse hauling and defense trucks. We are grateful to the Department of Energy and the Department of Defense for their support of these initiatives."
    Refuse collection vehicles have one of the most demanding duty cycles of any commercial truck. The stop-and-start nature of refuse collection contributes to an extremely inefficient use of fuel and vehicle systems. Under the NREL cost-sharing development program, Oshkosh will develop and demonstrate advanced heavy hybrid propulsion components and systems that can dramatically increase fuel economy and vehicle durability while reducing emissions for refuse applications.
    Although electric drive systems have been available in cars for years, Oshkosh is a leader in the development of next-generation hybrid propulsion systems in heavy trucks. In fact, Oshkosh was the first manufacturer to introduce hybrid electric drive technology for heavy trucks when it unveiled a ProPulse-equipped heavy-payload defense truck in 2000. The ProPulse system is designed to handle the rigors of off-road military operations while maximizing fuel economy. The Department of Defense research funding will allow Oshkosh to prepare its ProPulse system for a mass production environment.

    ProPulse Electric Drive Design and Performance

    The ProPulse system design uses a unique, modular series-hybrid arrangement to simplify the transmission of power to the wheels. The diesel engine powers an electric generator, which provides direct power to the wheels, eliminating the torque converter, automatic transmission, transfer case and drive shafts. A dedicated motor controlled from its own power converters drives each wheel independently.
    ProPulse technology can increase fuel economy by up to 40 percent over conventional power trains. The diesel engine is optimized to run at the most efficient speed based on power demand, and transient loads to the engine are eliminated using stored energy. This eliminates the inefficiency associated with changing rpm levels during acceleration and deceleration, and also reduces emissions. During stopping operations, the electric motors operate as generators, and energy is stored for use during the next acceleration. Other advantages of the system include:
    -- On-board generator. The system acts as an on-board generator,
    providing enough electricity to power a city block, airfield,
    hospital or command center.
    -- Smaller logistics footprint. Since the system uses no
    batteries, they never need to be replaced. The amount of fuel
    needed to supply ProPulse-equipped trucks is less.
    -- Advanced safety technology. Unlike some other systems, users
    can discharge all stored energy from the truck, so maintenance
    personnel can work in complete safety.

    Oshkosh is a founding partner in the 21st Century Truck Initiative, a research partnership sponsored by the federal government. This cooperative program between government and industry focuses on improving fuel economy, reducing air pollution and reducing dependence on petroleum-based fuels through development of new propulsion technologies, fuel cells and vehicle design.

    Oshkosh Truck Corporation is a leading manufacturer of specialty trucks and truck bodies for the fire and emergency, defense, concrete placement and refuse hauling markets. Products are marketed under the Oshkosh(R), Pierce(R), McNeilus(R), Geesink, Norba and Medtec(R) 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 the company web site at www.oshkoshtruck.com.

    Certain statements contained in this press release are "forward-looking statements" that Oshkosh believes are within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different. Those risks include, without limitation, matters described in Oshkosh's Form 8-K filed with the Securities and Exchange Commission (SEC) on January 23, 2003 and other filings with the SEC. Oshkosh disclaims any obligation to update these expectations except as described in the Form 8-K.