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Oshkosh Truck Reports Third Quarter EPS up 23.2%

Increases EPS Expectations to $3.00 for Fiscal 2004;
Announces Fiscal 2005 EPS Expectations of $3.30 and Increases Quarterly Dividend by 50%

OSHKOSH, Wis.--(BUSINESS WIRE)--July 27, 2004-- Oshkosh Truck Corporation (NYSE:OSK), a leading manufacturer of specialty trucks and truck bodies, today reported that third quarter net income increased 26.5 percent to $30.6 million, or $0.85 per share, on sales of $599.8 million for the quarter ended June 30, 2004. This compares with net income of $24.2 million, or $0.69 per share, on sales of $538.2 million for last year's third quarter. As a result of strong third quarter earnings, Oshkosh increased its earnings per share estimate for the full year ending September 30, 2004 from $2.90 to $3.00 per share.

Sales increased 11.5 percent in the third quarter. Operating income increased 20.2 percent to $49.2 million, or 8.2 percent of sales, compared to $40.9 million, or 7.6 percent of sales, in the prior year's third quarter. Strong defense segment results, including a cumulative catch-up adjustment to increase margins on the Company's multi-year Medium Tactical Vehicle Replacement ("MTVR") contract with the U.S. Marine Corps from 6.3 percent to 7.1 percent ($0.12 per share) and increased heavy-payload truck and parts sales, were partially offset by losses in the Company's European refuse business due to further weakening in market conditions and costs for headcount reductions and the introduction of new products. The MTVR contract margin adjustment reflects lower estimates for material cost escalation than expected at the current low production rate under the contract, improved overhead absorption related to higher defense production volumes than expected resulting from increased business related to the conflict in Iraq and improved warranty experience.

Robert G. Bohn, chairman, president and chief executive officer, said, "We saw a marked improvement in third quarter performance. We were pleased with the profitability achieved by our defense business and with the surge in new business volume across our company, which substantially increased our consolidated backlog by 28.3 percent at June 30, 2004, compared to the prior year. Market dynamics for all segments are robust and improving, except for the European refuse market, which remains weak.

Bohn continued, "We are not counting on improvement in European market conditions in the short-term and have initiated significant measures to improve Geesink Norba Group's performance, including a work force reduction and introduction of a new line of value-priced refuse bodies. In addition, although our North American commercial business has improved overall, we are implementing operational improvements within our McNeilus operations, with an eye on improving margins further.

"I'm pleased that we've completed the acquisition of Jerr-Dan in the tow truck market. This company is an excellent fit with our overall growth strategy, and we're confident the acquisition will be solidly accretive within the first year. All of these factors contribute to our expectations for continued solid earnings growth in fiscal 2005.

"Indeed, today we are announcing our estimate of fiscal 2005 earnings per share at $3.30, up 10.0 percent over our improved estimate of fiscal 2004 earnings. The Company also increased its quarterly cash dividend payable in August 2004 by approximately 50.0 percent as a result of its positive outlook for fiscal 2005 and improved cash flow," concluded Bohn.

Factors affecting third quarter results for the Company's business segments included:

Fire and emergency--Fire and emergency segment sales decreased 3.9 percent, to $142.6 million for the quarter due to lower airport product and international fire apparatus sales. Operating income was down 18.2 percent to $13.2 million, or 9.2 percent of sales, compared to prior year operating income of $16.1 million, or 10.9 percent of sales. Due to six to nine month lead times for custom fire apparatus, a significant percentage of third quarter shipments related to orders received in fiscal 2003. During fiscal 2003, industry order rates declined over 10.0 percent, causing pricing to be competitive for the lower volume of available business and orders reflected a particularly weak mix of higher-margin custom pumpers and aerials. Third quarter results also reflect increased product liability and group health costs and under absorption of overhead in the Company's Florida facility as the Company moved the production of the Palletized Load System trailers from that facility to Oshkosh. Beginning in the fourth quarter of fiscal 2003, the Company's orders in this segment began to improve, leading the Company to estimate improving segment results beginning in the fourth quarter of fiscal 2004.

Defense--Defense sales increased 6.9 percent to $191.1 million for the quarter, largely due to increased parts and heavy-payload truck sales, offset in part by the scheduled ramp-down of MTVR sales per contract. Operating income in the third quarter was up 100.7 percent to $33.9 million, or 17.8 percent of sales, compared to prior year operating income of $16.9 million, or 9.5 percent of sales. Operating income margins improved during the current quarter due to the MTVR margin adjustment, an improved mix of higher-margin parts and heavy-payload truck sales and strong manufacturing performance.

Commercial--Commercial sales increased 27.4 percent to $272.0 million for the quarter. Operating income decreased 11.0 percent to $13.4 million, or 4.9 percent of sales, compared to prior year operating income of $15.0 million, or 7.0 percent of sales. A nearly 50.0 percent improvement in concrete placement operating income and a more than 15.0 percent improvement in domestic refuse operating income were offset by losses in European refuse. The losses in European refuse result from a further weakening in European refuse markets and costs related to headcount reductions and the introduction of new smooth-sided and value-priced products during the third quarter.

Corporate and other--Corporate and other operating expenses and inter-segment profit elimination increased $4.2 million to $11.3 million, largely due to increased expenses related to acquisition investigations, increased personnel-related expenses and higher professional services costs. Net interest expense for the quarter decreased $1.9 million to $1.0 million compared to the prior year quarter. Lower interest costs were largely due to debt reduction in the second half of fiscal 2003 and in fiscal 2004 resulting from cash flow from operations.

Nine-Month Results

The company reported that net income increased 66.9 percent to $82.8 million, or $2.30 per share, for the first nine months of fiscal 2004 on sales of $1,611.2 million compared to $49.6 million, or $1.42 per share, for the first nine months of fiscal 2003 on sales of $1,417.9 million.

Operating income increased 52.9 percent to $131.0 million, or 8.1 percent of sales, in the first nine months of fiscal 2004 compared to $85.6 million, or 6.0 percent of sales, in the first nine months of fiscal 2003.

Dividend Announcement

Oshkosh Truck Corporation's Board of Directors declared a quarterly dividend of $0.075 per share for Class A Common Stock and $0.0875 per share for Common Stock. These dividends, up approximately 50.0 percent from the immediately preceding quarter, will be payable August 13, 2004, to shareholders of record as of August 6, 2004. Oshkosh Truck Corporation officials will comment on third quarter earnings and expectations for the remainder of fiscal 2004 and fiscal 2005 during a live conference call at 11:00 a.m. Eastern Daylight Time today. The call will be available simultaneously via a webcast over the Internet as a service to investors. It will be listen-only format for on-line listeners. To access the webcast, investors should go to at least 15 minutes prior to the event and follow instructions for listening to the broadcast. An audio replay of such conference call and related question and answer session will be available for at least twelve months at this website.

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), Jerr-Dan(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 success of the launch of the Revolution(R) composite concrete mixer drum, the outcome of defense truck procurement competitions, the Company's ability to turnaround its European refuse business in light of weak industry conditions, the cyclical nature of the Company's commercial and fire and emergency markets, risks related to reductions in government expenditures, the uncertainty of government contracts, the challenges of identifying acquisition candidates and integrating acquired businesses, rapidly rising steel and component costs and the Company's ability to avoid such cost increases based on its supply contracts or recover such rising costs with increases in selling prices of its products, and risks associated with international operations and sales, including foreign currency fluctuations. In addition, the Company's expectations for fiscal 2004 and 2005 are based in part on certain assumptions made by the Company, including, without limitation, the sale of 400 and 1,000 Revolution composite concrete mixer drums in the U.S. in fiscal 2004 and 2005, respectively, at favorable pricing and costs; increasing 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 waste haulers; targets for Geesink Norba sales and operating income; the ability of the Company to recover steel and component cost increases from its customers; spending on pre-contract costs; interest costs; the ability to integrate acquired businesses; and that the Company does not complete any acquisitions other than those recently announced. 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 today.

                       OSHKOSH TRUCK CORPORATION

                            Three Months Ended    Nine Months Ended
                                 June 30,             June 30,
                             2004      2003       2004        2003
                           --------- --------- ----------- -----------
                             (In thousands, except per share amounts)

Net sales                  $599,824  $538,183  $1,611,231  $1,417,896
Cost of sales               500,576   456,571   1,345,798   1,212,853
                           --------- --------- ----------- -----------
Gross income                 99,248    81,612     265,433     205,043
Operating expenses:
 Selling, general and
  administrative             48,417    39,100     129,457     114,573
 Amortization of
  purchased intangibles       1,666     1,621       4,998       4,830
                           --------- --------- ----------- -----------
Total operating expenses     50,083    40,721     134,455     119,403
                           --------- --------- ----------- -----------
Operating income             49,165    40,891     130,978      85,640
Other income (expense):
   Interest expense          (1,459)   (3,273)     (4,008)    (10,179)
   Interest income              411       306         992         800
   Miscellaneous, net           119      (465)        679        (140)
                           --------- --------- ----------- -----------
                               (929)   (3,432)     (2,337)     (9,519)
                           --------- --------- ----------- -----------
Income before provision for
 income taxes and equity in
 earnings of
 unconsolidated affiliates   48,236    37,459     128,641      76,121
Provision for income taxes   18,215    13,796      47,563      28,178
                           --------- --------- ----------- -----------
Income before equity in
 earnings of
 unconsolidated affiliates   30,021    23,663      81,078      47,943

Equity in earnings of
 unconsolidated affiliates,
 net of income taxes            602       546       1,716       1,672
                           --------- --------- ----------- -----------
Net income                  $30,623   $24,209     $82,794     $49,615
                           ========= ========= =========== ===========

Earnings per share:
   Class A Common Stock       $0.76     $0.62       $2.06       $1.27
   Common Stock               $0.87     $0.71       $2.37       $1.47

Earnings per common share
 assuming dilution            $0.85     $0.69       $2.30       $1.42

Weighted average shares
     Class A Common Stock       811       825         813         828
     Common Stock            34,299    33,204      34,155      33,134
   Assuming dilution         36,055    34,878      35,961      34,848

Cash dividends:
   Class A Common Stock    $0.07500  $0.05000    $0.17500    $0.12500
   Common Stock            $0.08750  $0.05750    $0.20250    $0.14375

                       OSHKOSH TRUCK CORPORATION

                                              June 30,   September 30,
                                                2004         2003
                                             ----------- -----------
                                                  (In thousands)
Current assets:
   Cash and cash equivalents                    $25,276     $19,245
   Receivables, net                             230,878     159,752
   Inventories                                  350,325     242,076
   Prepaid expenses                              11,670      10,393
   Deferred income taxes                         34,086      35,092
                                             ----------- -----------
      Total current assets                      652,235     466,558
Investment in unconsolidated affiliates          21,905      21,977
Other long-term assets                           26,649       7,852
Property, plant and equipment                   294,849     285,270
Less accumulated depreciation                  (146,919)   (138,801)
                                             ----------- -----------
   Net property, plant and equipment            147,930     146,469
Purchased intangible assets, net                100,856     102,460
Goodwill                                        343,106     337,816
                                             ----------- -----------
Total assets                                 $1,292,681  $1,083,132
                                             =========== ===========

Current liabilities:
   Accounts payable                            $169,712    $115,739
   Floor plan notes payable                      46,416      18,730
   Customer advances                            204,650     164,460
   Payroll-related obligations                   37,854      33,712
   Income taxes                                   7,275         263
   Accrued warranty                              28,961      29,172
   Other current liabilities                     66,689      54,293
   Revolving credit facility and current
    maturities of long-term debt                 14,593      51,625
                                             ----------- -----------
        Total current liabilities               576,150     467,994
Long-term debt                                      643       1,510
Deferred income taxes                            46,593      47,619
Other long-term liabilities                      66,363      47,146
Commitments and contingencies
Shareholders' equity                            602,932     518,863
                                             ----------- -----------
Total liabilities and shareholders' equity   $1,292,681  $1,083,132
                                             =========== ===========

                       OSHKOSH TRUCK CORPORATION


                                                  Nine Months Ended
                                                       June 30,
                                                    2004      2003
                                                 ---------  --------
                                                   (In thousands)
Operating activities:
   Net income                                     $82,794   $49,615
   Non-cash and other adjustments                  24,304    10,043
   Changes in operating assets and liabilities    (27,382)   10,540
                                                 ---------  --------
     Net cash provided from operating activities   79,716    70,198

Investing activities:
   Additions to property, plant and equipment     (19,203)  (16,753)
   Proceeds from sale of assets                       108     3,770
   Increase in other long-term assets             (16,339)   (7,910)
                                                 ---------  --------
     Net cash used for investing activities       (35,434)  (20,893)

Financing activities:
   Net repayments under revolving credit facility (37,000)        -
   Proceeds from issuance of long-term debt           965         -
   Repayment of long-term debt                     (1,872)  (48,241)
   Dividends paid                                  (6,032)   (4,395)
   Other                                            4,471     2,065
                                                 ---------  --------
     Net cash used for financing activities       (39,468)  (50,571)

Effect of exchange rate changes on cash             1,217       945
                                                 ---------  --------
Increase (decrease) in cash and cash equivalents    6,031      (321)

Cash and cash equivalents at beginning of period   19,245    40,039
                                                 ---------  --------

Cash and cash equivalents at end of period        $25,276   $39,718
                                                 =========  ========

Supplementary disclosure:
   Depreciation and amortization                  $20,073   $18,943

                       OSHKOSH TRUCK CORPORATION
                          SEGMENT INFORMATION

                          Three Months Ended      Nine Months Ended
                               June 30,               June 30,
                         --------------------- -----------------------
                            2004        2003      2004        2003
                         ----------- --------- ----------- -----------
                                       (In thousands)

Net sales to unaffiliated
   Commercial              $272,019  $213,585    $672,817    $562,734
   Fire and emergency       142,572   148,345     401,072     402,887
   Defense                  191,051   178,779     549,575     457,939
    eliminations             (5,818)   (2,526)    (12,233)     (5,664)
                         ----------- --------- ----------- -----------
      Consolidated         $599,824  $538,183  $1,611,231  $1,417,896
                         =========== ========= =========== ===========

Operating income
   Commercial               $13,359   $15,011     $29,985     $34,047
   Fire and emergency        13,186    16,113      36,003      40,453
   Defense                   33,946    16,913      94,145      33,239
   Corporate and other      (11,326)   (7,146)    (29,155)    (22,099)
                         ----------- --------- ----------- -----------
      Consolidated          $49,165   $40,891    $130,978     $85,640
                         =========== ========= =========== ===========

Period-end backlog:
   Commercial                                    $219,302    $131,105
   Fire and emergency                             457,139     266,291
   Defense                                        876,253     812,377
                                               ----------- -----------
      Consolidated                             $1,552,694  $1,209,773
                                               =========== ===========

Oshkosh Truck Corporation
Charles L. Szews, 920-235-9151, Ext. 2332
Kirsten Skyba, 920-233-9621