PACCAR Announces Stock Repurchase Program

19 September 2000

PACCAR Announces Stock Repurchase Program

    BELLEVUE, Wash.--Sept. 19, 2000--PACCAR Inc's board of directors today approved company plans to purchase from time to time on the open market up to two million shares of its outstanding common stock, according to Mark C. Pigott, PACCAR chairman and chief executive officer.
    Repurchased PACCAR stock will be used for general corporate purposes, including awards of stock and grants of stock options under the company's existing compensation and benefits plans. Earlier this year PACCAR repurchased two million shares of its outstanding common stock.
    On September 18, 2000, the company had 76,530,959 shares outstanding.
    "The repurchase of the company's stock continues to be an excellent investment," said Pigott. "PACCAR is one of the leading automotive companies in the world and has demonstrated an enviable track record of growth and outstanding results for 95 years. PACCAR was recently recognized by Business Week Magazine as one of the `Web Smart 50' global companies, for its leadership in utilizing the Internet in daily business processes."
    David Hovind, president, commented, "The U.S. and Canadian Class 8 truck market has deteriorated due to softening used truck prices, higher diesel fuel costs and increased interest rates. Industry net orders for the last two months have been 20 percent lower than second quarter 2000 and 40 percent lower than third quarter last year. As a result, industry truck production in the last two months has declined from the second quarter this year. PACCAR has reduced build rates at all of its facilities in the U.S. and Canada reflecting lower sales, but continues to invest in new products, information technology programs, and Six Sigma. PACCAR is pleased that the Kenworth and Peterbilt trucks continue to record the highest residual values in the marketplace."
    Mike Tembreull, vice chairman, added, "Lower truck orders and production rates have intensified price competition in North America. The industry's finance companies, including PACCAR Financial, are experiencing increased vehicle repossessions and higher credit losses."

    PACCAR, an $8.0 billion company, is a technological leader in the design, development and manufacture 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 industrial winches under the Braden, Gearmatic and Carco nameplates.

    PACCAR shares are traded on the NASDAQ Exchange, symbol PCAR, and its homepage can be found at www.paccar.com.