June 8, 2007, Bellevue, Washington – PACCAR’s commitment to producing industry-leading aerodynamic and fuel-efficient vehicles has been recognized by the Environmental Protection Agency (EPA) SmartWay® program. Kenworth’s T660 and T2000 and Peterbilt’s 386 and 387 models are highlighted as environmental leaders due to their application of aerodynamic packaging in their product designs, including sophisticated roof and fuel tank side fairings, bumpers and mirrors, as well as improved engine efficiency. SmartWay® compliant vehicles offer customers a 10-20 percent fuel savings, while also lowering greenhouse gas emissions by significantly reducing NOx and particulate matter.

"PACCAR is pleased to be recognized for its environmental leadership and to partner with the EPA in the development of new technologies for future engine enhancements," said Tom Plimpton, PACCAR president. "Kenworth and Peterbilt are the first commercial vehicle manufacturers to have their complete product line compliant with EPA 2007 emissions regulations. PACCAR is increasing capital expenditures to enhance its leadership in technology, quality and environmental stewardship."

Hybrid Technology
In addition to EPA’s SmartWay® recognition, PACCAR has accelerated its environmental leadership, as evidenced by the development of hybrid vehicle technologies. The innovative Kenworth Clean Power™ and Peterbilt Comfort Class™ cab cooling and heating systems dramatically improve fuel efficiency by eliminating engine use during driver rest periods. “Customers may receive as much as an eight percent improvement in fuel economy when using these new PACCAR systems,” said Dan Sobic, PACCAR senior vice president.

DAF, Kenworth and Peterbilt will begin production of medium-duty hybrid trucks in 2008. These new vehicles will offer significant fuel economy improvements, particularly in urban and utility applications. “The hybrid vehicles program targets a 30 percent improvement in fuel efficiency, which will reduce vehicle operating costs and promote greater environmental stewardship,” said Jim Cardillo, PACCAR executive vice president.

Industry Awards and Recognition
PACCAR has been recognized as one of the best-performing companies by Barron’s magazine (www.barrons.com). Barron’s evaluated and ranked the 500 largest U.S. and Canadian companies by sales growth, cash flow and shareholder return. “PACCAR is pleased to be recognized by Barron’s as one of the top five companies in the survey,” said Mark C. Pigott, chairman and chief executive officer. “PACCAR shareholders benefit from the company’s balanced global diversification and the high-quality products and services delivered by the company’s 19,000 dedicated employees worldwide.”

Forbes magazine (www.forbes.com) recently published its annual CEO pay-versus-performance review. In the pay-versus-performance rankings, Forbes evaluated 189 CEOs who met the qualification criteria of a minimum of six-year tenure as chief executive. The rankings were calculated by comparing company stock performance (including dividends) relative to peer companies and the S&P 500 Index. The final criterion was the executive’s compensation trends during the previous years.

The scores were combined and the executive and company performance were ranked. PACCAR was identified as having one of the top 10 best-performing CEOs in the review. PACCAR’s chief executive officer is the only CEO in the survey to be recognized as a top 10 leader five years in a row.