Peterbilt Achieves New Labor Agreement

    NASHVILLE, Tenn.--June 23, 2003--Peterbilt Motors Company announced today that it has reached agreement on a new five-year labor contract for its Nashville facility with the United Auto Workers (UAW) Local 1832.
    "Peterbilt is pleased that its employees will be returning to work. Peterbilt believes the agreement will enhance operating efficiencies, while providing an excellent benefit package for our Peterbilt employees," said Joe Scattergood, Peterbilt Nashville plant manager.
    "Peterbilt is very appreciative of the outstanding support from our employees at Denton and Ste-Therese which, with the new labor agreement, will enable Peterbilt to continue to deliver the highest-quality trucks in the marketplace. We also thank our dealers, customers and suppliers for their encouragement," added Nick Panza, Peterbilt general manager.
    Peterbilt Motors Company is a division of PACCAR, 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.