PACCAR Announces Stock Dividend and Quarterly Cash Dividend

BELLEVUE, Wash.--July 11, 2006--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 August 10, 2006, to stockholders of record at the close of business on July 27, 2006. The Company's stock has outperformed the Standard & Poor's 500 Index for the previous one-, three-, five- and ten-year time periods.

"PACCAR has generated excellent shareholder return due to its focus on premium-quality products and processes, innovative use of technology and excellent financial services and aftermarket customer support," said Mike Tembreull, vice chairman. The company recently earned an award for "Best Achievement Integrating Lean and Six Sigma." Helene Mawyer, vice president, noted, "PACCAR's use of six sigma in all facets of its business, with over 5,000 completed projects, has contributed to exemplary operational results."

The Board of Directors also declared a quarterly cash dividend in the amount of twenty cents ($.20) on each newly-split share, payable on September 5, 2006, to stockholders of record at the close of business on August 18, 2006.

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 and DAF nameplates. It also provides financial services and information technology and distributes truck parts related to its principal business.

PACCAR shares are listed on NASDAQ Global Select Market, symbol PCAR, and its homepage can be found at www.paccar.com.