PACCAR and Cummins Announce Class 6/7 Engine Agreement

June 26, 2006, Bellevue, Washington PACCAR Inc and Cummins Inc. today announced an agreement for the Cummins 6- and 8-liter engines to be installed exclusively in Peterbilt and Kenworths North American conventional medium-duty commercial vehicles, effective January 1, 2007.  The two companies are developing proprietary configurations for the engines, which will be badged as PACCAR engines.

This agreement is a natural extension of the engine collaboration, which DAF and Cummins have had in Europe for seven years, said Tom Plimpton, PACCAR president.  The Cummins 4- and 6-liter engines, badged as PACCAR, are exclusive in the DAF LF product.  The DAF LF is the leading light-duty commercial vehicle in the U.K. marketplace and has approximately ten percent of the European market.  Plimpton added, This North American agreement enables PACCAR to compete on a comparable basis with our competitors, who have their own proprietary medium-duty engines.  Additionally, this agreement will significantly reduce the cost of homologating multiple 2007 EPA compliant engines in our chassis. Peterbilt and Kenworth will continue to offer their customers a choice of engines in their Class 8 vehicles.

Joe Loughrey, Cummins president and chief operating officer, shared, This is an exciting development between two great companies and will enable Cummins and PACCAR to optimize the power train in medium-duty Kenworth and Peterbilt trucks. PACCAR has approximately ten percent of the North American medium-duty market and has won six J.D. Power Awards for Highest Customer Satisfaction.  Loughrey noted, Cummins was the first diesel engine installed in Kenworth in 1933 and this agreement continues the legacy of innovation and market leadership between the two companies.

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.  Headquartered in Columbus, Indiana, (USA) Cummins serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations.  Press releases can be found on the Web at www.cummins.com.

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 traded on the Nasdaq Stock Market, symbol PCAR, and its homepage can be found at www.paccar.com.