Oshkosh Defense Awarded $24 Million for M-ATV Upgrade Kits — Press Release

by: Matthew Potter
February 18, 2010

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Oshkosh Defense Awarded $24 Million for M-ATV Upgrade Kits

OSHKOSH, Wis. — Feb. 18, 2010 — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), announced today it has received two awards valued at more than $24 million from the U.S. Army Tank-automotive and Armaments Command Life Cycle Management Command (TACOM LCMC) for MRAP All-Terrain Vehicle (M-ATV) kits for the support of communication equipment and electrical system upgrades. The combined undefinitized orders consist of more than 2,090 upgrade kits for the vehicles.

The kits will support the installation of Command, Control, Communication, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) suites composed of electronic equipment such as communications hardware, jammer systems, tracking technology and driver vision enhancement. The kits also will support the addition of “silent watch” capability, which allows the M-ATV to operate C4ISR equipment for extended periods of time with reduced noise and heat signatures from the vehicle.

“The C4ISR technology and silent watch capability that these kits support will further enhance the M-ATV’s effectiveness in combat operations in Afghanistan,” said Andy Hove, Oshkosh Corporation executive vice president and president, Defense. “Our advanced manufacturing capabilities, highly skilled workforce and available capacity ensure these upgrades can be completed without impacting our continued rapid delivery of any of our military vehicles under contract.”

Since January 2010, Oshkosh has been incorporating the M-ATV upgrades into the production process at both its M-ATV production facilities, Oshkosh and the Space and Naval Warfare Systems Command will install the upgrade kits on vehicles already built.

Oshkosh has exceeded the accelerated M-ATV delivery schedule for seven consecutive months. To date, the aggregate amount of awards Oshkosh has received for 6,619 M-ATVs, upgrade kits, spare parts kits and aftermarket support is valued at more than $4 billion. Existing Oshkosh manufacturing facilities have available production capacity for these M-ATV orders and all other Defense programs, including the U.S. Army’s Family of Medium Tactical Vehicles (FMTV), as well as any surges in production.

The Oshkosh® M-ATV uses the Oshkosh-patented TAK-4® independent suspension system for superior mobility in harsh environments, including 16 inches of independent wheel travel and a 70 percent off-road profile capability. The TAK-4 system has undergone more than 500,000 miles of government testing and is being retrofitted on more than 2,400 legacy MRAPs for improved mobility in Afghanistan. The TAK-4 system is featured on more than 10,000 Medium Tactical Vehicle Replacements (MTVR), used by the U.S. Marine Corps and Navy Seabees, as well as on the Army’s next-generation Palletized Load System (PLS) and the Marine Corps’ Logistics Vehicle System Replacement (LVSR).

About Oshkosh Defense

Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corp. manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline™, SMIT™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, log on to www.oshkoshcorporation.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

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Forward-Looking Statements

This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include risks related to sustaining the required rate of production for the M-ATV contract and the amount, if any, of additional orders for M-ATVs that the Company may receive; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and tight credit markets; the duration of the global recession, which could lead to additional impairment charges related to many of the Company’s intangible assets; the expected level and timing of U.S. Department of Defense procurement of products and services and funding thereof, risks related to reductions in government expenditures, the potential for the government to competitively bid the Company’s Army and Marine contracts and the uncertainty of government contracts generally; the consequences of financial leverage associated with the JLG acquisition, which could limit the Company’s ability to pursue various opportunities; risks related to the collectability of receivables during a recession, particularly for those businesses with exposure to construction markets; risks related to production delays as a result of the economy’s impact on the Company’s suppliers; the potential for commodity costs to rise sharply, including in a future economic recovery; risks associated with international operations and sales, including foreign currency fluctuations; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this press release. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.

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