Oshkosh Truck Initiates Redemption of $100 Million 8 3/4% Senior Subordinated Notes

OSHKOSH, Wis.--Aug. 1, 20038, 2003--Oshkosh Truck Corporation announced today that it has initiated the process to redeem the entire $100 million aggregate principal amount of its 8 3/4% Senior Subordinated Notes due 2008. The Company plans to redeem the Notes in accordance with their terms on September 19, 2003, at a redemption price of 104.375% of the aggregate principal amount, plus interest to the redemption date. The Company intends to fund the redemption through borrowings under its existing revolving credit facility.

The redemption will result in a charge to earnings of approximately $6.0 million ($3.8 million net of income taxes), or $0.11 per share, in the fourth quarter of fiscal 2003, involving the call premium and unamortized debt issuance costs. The Company expects the redemption will reduce interest expense by approximately $6.5 million in fiscal 2004, or $0.12 per share.

"The Company is redeeming the 8 3/4% Senior Subordinated Notes to take advantage of strong cash flow and the low interest rate environment. Given limited outstanding borrowings, the Company believes that it can pursue its acquisition strategy with substantially lower rate debt. The redemption also removes financial restrictions on certain investments, particularly foreign-based acquisitions. The Company appreciates the strong support that it has received from its bondholders over the last 5 1/2 years," commented Robert G. Bohn, chairman, president and chief executive officer.

Oshkosh Truck Corporation is a leading designer, manufacturer and marketer of a broad range of specialty commercial, fire and emergency and military trucks and truck bodies under the Oshkosh(R), McNeilus(R), Pierce(R), Medtec(R), Geesink and Norba brand names. Oshkosh's products are valued worldwide by fire and emergency units, defense forces, municipal and airport support services, and concrete placement and refuse businesses where high quality, superior performance, rugged reliability and long-term value are paramount.

Forward-Looking Statements

This press release contains statements that the company believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital spending and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as the Company "expects," "intends," "estimates," "anticipates," or "believes" and similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, without limitation, the cyclical nature of the Company's commercial and fire and emergency markets, the outcome of defense truck procurement competitions, risks related to reductions in government expenditures, the uncertainty of government contracts, the challenges of identifying acquisition candidates and integrating acquired businesses and risks associated with international operations and sales, including foreign currency fluctuations. In addition, the Company's expectations for fiscal 2003 and 2004 are based in part on certain assumptions made by the Company, including, without limitation, those relating to anticipated sales and pricing of the Revolution(TM) composite mixer drum; concrete placement activity; the performance of the U.S. and European economies generally; when the Company will receive sales orders and payments; achieving cost reductions; production and margin levels under the MTVR contract, the FHTV contract and for international defense trucks; capital expenditures of municipalities and large commercial waste haulers; spending on bid and proposal activities and pre-contract costs; interest costs; and that the Company does not complete any acquisitions. Additional information concerning these and other factors is contained in the Company's filings with the Securities and Exchange Commission, including the Form 8-K filed on July 24, 2003.