PACCAR Opens New Canadian Plant.

STE. THERESE, Quebec--(Automotive Wire)--Sept. 28, 1999--

PACCAR Inc (Nasdaq:PCAR) today opened a new, C$135 million state-of-the-art truck manufacturing plant in Ste. Therese, Quebec, Canada, which Chairman and Chief Executive Officer Mark C.

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"One of the key growth opportunities for PACCAR is the Class 4-7 truck market in North America. This world-class facility and the ongoing development of new products, such as the Peterbilt 270 and the Kenworth K300, are key elements in achieving our goal of being a leader in the medium-duty truck market," said Pigott. "The facility's capacity is 20,000 trucks per year."

The new 425,000-square-foot PACCAR Ste. Therese facility features the latest in manufacturing technology, such as supplier logistics partnerships, modern production processes, state-of-the-art paint facilities and innovative ERP systems. Under construction for approximately 12 months, the plant began operations early last month with the hiring of 170 employees.

The opening ceremony, which included employees and officials from local, provincial and national governments, included a presentation of the plant's first truck -- a Kenworth T300 -- to Mr. Elie Fallu, mayor of Ste. Therese.

"This Kenworth truck represents the strength of PACCAR's 30-year partnership and commitment to the region's community," said Pigott, who added that contracts granted to local firms were worth close to 70 percent of the plant's total cost. Also speaking at the ceremony were Mr. Bernard Landry, Deputy Premier of Quebec and Minister for Economy and Finance and the Honourable Martin Cauchon, Federal Minister of National Revenue and Secretary of State responsible for Canada Economic Development.

PACCAR Ste. Therese was financed with a private/public-funding package, which included a C$110 million investment by PACCAR. Government contributions included a C$13.5 million loan from the governments of Canada and Quebec under the Canada-Quebec Subsidiary Agreement on Industrial Development (1991).

Approximately C$2 million in employee training costs will be paid from the new Fonds de developpement industriel du Quebec (Quebec Industrial Development Fund.) A C$10 million loan from Quebec through the Fonds pour l'accroissement de l'investissement prive et la relance de l'emploi (FAIRE) (Fund to Promote Private Investment and Job Revitalization) also was included.