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PACCAR Begins Construction of Mississippi Engine Plant

July 17, 2007, Bellevue, Washington PACCAR held a groundbreaking ceremony for its new engine plant near Columbus, Mississippi today.  The ceremony, led by PACCAR Chairman and Chief Executive Officer Mark Pigott and Mississippi Governor Haley Barbour, was attended by state and local officials, business and educational leaders.

This is the official launch of an exciting and strategically significant development for PACCAR, said Mark Pigott.  Our dealers, customers and suppliers have positively embraced this initiative, which will result in the highest-quality vehicles in the marketplace.  This leading-edge facility will enhance PACCARs integration of technology in design, engineering, and manufacturing.  It is our goal that this facility will be the most technologically advanced and environmentally friendly commercial vehicle diesel engine facility in North America.  The engines produced in Mississippi will complement DAFs excellent engine factory in the Netherlands. The $400 million facility will include a 420,000-square- foot engine plant and technology center on a 400-acre site in Columbus, Mississippi.  Construction will begin immediately and is due to be completed in 2009.  This is a superb location, close to many of our North American truck assembly facilities, customers and supplier partners, added Pigott.

The location of PACCARs new state-of-the-art manufacturing facility in Lowndes County is further evidence of the high caliber of Mississippis workforce and our commitment to bringing high-paying jobs to our state, Governor Barbour said.  PACCARs presence will help maintain economic growth and contribute to an improved quality of life in this region and the state as a whole.

PACCAR executive vice president Jim Cardillo noted, We appreciate the support of state and local leaders, and we look forward to developing strong partnerships with the community, county and state.  We are excited to be working closely with Mississippi State University and other colleges and universities in the region.  The vibrant learning environment and talented local employee base are important to PACCAR. The PACCAR engine facility will have a strong economic impact in the Golden Triangle Region.  Initially there will be over two hundred employees hired at the facility and as production increases the number of employees is anticipated to grow to five hundred.  Construction-related jobs and employment opportunities from PACCAR suppliers locating in the area will also contribute to the economic benefits of the region.

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.