PACCAR Announces Extra Cash Dividend and Stock Repurchase Program

December 7, 2004, Bellevue, Washington PACCAR Incs Board of Directors today declared an extra cash dividend in the amount of two dollars ($2.00) per share, payable January 5, 2005, to stockholders of record at the close of business on December 20, 2004, according to Mark C. Pigott, PACCAR chairman and chief executive officer.

PACCARs strong profit and cash flow performance has enabled the company to enhance its position as a leading technology company in the capital goods and financial services industry worldwide, noted Pigott.  PACCAR has increased its capital investments in research and design centers, manufacturing and aftermarket customer support facilities and in all facets of its distribution network.  This has contributed to PACCAR achieving record net profits and market share.

PACCAR Incs Board of Directors today approved company plans to repurchase, from time to time on the open market, up to five million shares of its outstanding common stock.

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, DAF and Foden nameplates.  It also provides financial services and distributes truck parts related to its principal business.  In addition, the Bellevue, Washington-based company manufactures industrial winches under the Braden, Gearmatic and Carco nameplates.

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