$300 Million Share Repurchase Authorized DAF Plans Production Increase

BELLEVUE, Wash., Jul 08, 2008 (BUSINESS WIRE) -- PACCAR's (Nasdaq:PCAR) Board of Directors declared a quarterly
cash dividend in the amount of eighteen cents ($.18) per share,
payable September 5, 2008, to stockholders of record at the close of
business on August 18, 2008, according to Mark C. Pigott, PACCAR
chairman and chief executive officer.

The PACCAR Board of Directors today approved the repurchase of an
additional $300 million of its outstanding common stock. PACCAR is
nearing completion of its previously announced $300 million share
repurchase program. PACCAR has invested $1.24 billion to repurchase 33
million shares and paid $2.26 billion in dividends since January 2005.
"PACCAR's strong net profits and excellent cash flow make the
company's shares an attractive long-term investment," said Mike
Tembreull, vice chairman. "The stock repurchase program reflects the
Board's confidence in PACCAR's successful global business growth."
PACCAR has earned a net profit for 69 consecutive years and has paid a
dividend every year since 1941. PACCAR has established itself as a
global leader in financial services, aftermarket customer support,
information technology and lean manufacturing.

DAF Trucks is increasing its production by five percent in
September to meet strong customer demand for its award-winning
vehicles. Aad Goudriaan, DAF president, commented, "DAF is growing in
Western and Central European markets as customers realize the benefits
from DAF vehicles industry-leading product quality and low cost of
operation." The European truck markets are expected to set new
registration records this year. In addition, PACCAR Parts new
distribution center in Budapest, Hungary, has begun service to dealers
and customers in Central Europe.

"PACCAR is the industry leader in the development of
environmentally friendly technologies," said Tom Plimpton, PACCAR
president. PACCAR's medium-duty hybrid vehicles are estimated to
deliver up to 30 percent better fuel economy and are planned to be in
production by mid-2008. "PACCAR's no-idle climate control and hotel
power load solutions in Kenworth's CleanPower(TM) and Peterbilt's
ComfortClass(TM) vehicles reduce emissions by 12 percent and improve
fuel economy up to 8 percent," added Plimpton.

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 aftermarket
support for its customers worldwide. PACCAR shares are traded on the
Nasdaq Stock Market, symbol PCAR, and its homepage is www.paccar.com.

SOURCE: PACCAR

PACCAR Inc
Robin Easton, 425-468-7676

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