PACCAR Announces Stock Dividend; Increases Quarterly Dividend

BELLEVUE, Wash.--Dec. 9, 2003--PACCAR Inc's Board of Directors today declared a 50 percent stock dividend of the Company's common stock (i.e., one additional share for each two shares held). The new shares will be issued on February 5, 2004, to stockholders of record at the close of business on January 19, 2004. "PACCAR has earned a net profit for 64 consecutive years and paid a dividend every year since 1941," said Mark Pigott, PACCAR chairman and chief executive officer. "PACCAR's truck brands -- Peterbilt, Kenworth and DAF -- are global leaders in durability and resale value, which creates a superior life-cycle cost advantage for our customers. In addition, PACCAR shareholder return is excellent, as the company has outperformed the Standard & Poor's 500 Index for the previous one-, five- and ten-year time periods."

The Board of Directors also declared an increased quarterly cash dividend in the amount of fifteen cents ($.15) per share on each newly-split share, payable on March 5, 2004, to stockholders of record at the close of business on February 18, 2004. PACCAR has increased its regular quarterly dividend by 125 percent in the last six years. "PACCAR's strong profit and cash flow performance has enabled it to continue as a leading company in the automotive industry worldwide," noted Mike Tembreull, vice chairman.

PACCAR 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.