Twin Disc, Inc., Wins New Military Contract

    RACINE, Wis.--June 27, 2003--Twin Disc, Inc. , today announced that it has received an order from American Truck Company (ATC), a joint venture of Terex Corporation ("TEX Trade"), STV USA and TATRA, a.s., a Czech Republic heavy-duty truck manufacturer, following negotiations that were announced April 11, 2003.
    Twin Disc has a long-standing relationship with both Terex and TATRA and has provided transmissions to TATRA for a number of years for other applications. The $14.8 million order announced today is for the transmission systems for medium tactical vehicles to be supplied to Israeli Defense Forces. The ATC trucks are based on a proprietary design developed and tested over many years by TATRA, a.s., featuring a "central backbone" chassis design with an all-wheel drive suspension that can be configured as 4x4, 6x6, 8x8, 10x10 and even 12x12 vehicles. Delivery of the trucks is scheduled over the next 18 to 24 months.
    The Twin Disc transmission system, which is integral to the chassis, features the latest technology in automatic transmission, torque converter, electronic control, hydraulic and cooling systems.
    Michael E. Batten, Twin Disc, Inc., Chairman and Chief Executive Officer, commented: "This contract is a result of our ongoing strategy to provide innovative transmission systems for sophisticated specialty vehicles."
    Twin Disc, Inc., designs, manufactures and internationally distributes heavy-duty off-highway power transmission equipment for the construction, industrial, government, marine, agricultural, and energy and natural resources markets.
    This press release may contain statements that are forward looking as defined by the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors including those identified in the Company's most recent periodic report and other filings with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that the results expressed therein will be achieved.