PACCAR Announces Quarterly Dividend and Stock Repurchase

July 12, 2005, Bellevue, Washington PACCARs Board of Directors declared a regular quarterly cash dividend in the amount of twenty-one cents ($.21) per share, payable on September 6, 2005, to stockholders of record at the close of business on August 18, 2005.

PACCAR has earned a net profit for 66 consecutive years and has paid a dividend every year since 1941, said Mark C. Pigott, chairman and chief executive officer.  PACCARs global truck brands Peterbilt, Kenworth and DAF are leaders in reliability and resale value, which creates a superior life-cycle cost advantage for our customers.

From January through June this year, PACCAR has repurchased 2.83 million shares of its stock for $193.5 million.  PACCAR stock continues to be an excellent value, said Mike Tembreull, vice chairman.

In addition, as of June 30, PACCAR had repatriated over $700 million, of the $1.5 billion authorized by the Board, from its subsidiaries worldwide pursuant to the American Jobs Creation Act signed by President Bush in October last year.

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, information technology and distributes truck parts related to its principal business.

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