Oshkosh Truck Announces $30.6 Million Contract for U.S. Marine Corps Mine Resistant Ambush Protected (MRAP) Vehicles
OSHKOSH, Wis. — Feb. 26, 2007 — Oshkosh Truck Corporation (NYSE:OSK) announced today that the company has received a $30.6 million contract award from the U.S. Marine Corps Systems Command for its Mine Resistant Ambush Protected (MRAP) vehicle program. Under this production contract, Oshkosh will produce 100 Category I MRAP vehicles that will be deployed with U.S. military forces worldwide. Oshkosh plans to expedite its production schedule and deliver the first units within 120 days to meet the Marine Corps' urgent needs for additional armored vehicles in theater.
The MRAP program has current estimated requirements of 4,100 Category I and II vehicles with an approximate value of more than $2 billion. Potential long-term requirements are estimated to be significantly higher. The Category I vehicle is the smaller of the two MRAP vehicles, intended for urban operations and referred to as the Mine Resistant Utility Vehicle (MRUV).
“Oshkosh is prepared to meet and exceed the critical delivery and protection requirements of the U.S. Marine Corps and the MRAP program. The armored vehicles we have proposed are engineered to save lives in the face of today's asymmetric warfare threats such as mines and IEDs. Our production and engineering capabilities will ensure the rapid delivery of world-class armored vehicles as the MRAP program continues to develop,” said Robert G. Bohn, chairman, president and chief executive officer of Oshkosh Truck. “We are also prepared to provide the long-term logistics support required by a deployed MRAP fleet. Oshkosh has the experience and infrastructure in place in the theater of operation to provide whatever level of support is required. We have maintained and up-armored thousands of vehicles, of many makes and models, at our facilities in theater over the past four years. Service installations and field service representatives are already in place, ready to support the MRAP fleet of vehicles as soon as it is operational.”
The MRAP program is a joint acquisition between the Marine Corps and the U.S. Army and is taking place under Rapid Deployment Capability authority, intended to field protected vehicles to forces in theater in large quantities as rapidly as possible. In January, Oshkosh was one of nine companies awarded a contract to provide vehicles for testing under the MRAP program.
The Category I vehicle proposed by Oshkosh Truck is designed by Protected Vehicles, Inc. (PVI) of North Charleston, South Carolina. Over the past year, Oshkosh and PVI have forged a relationship that takes advantage of the experience, strengths and expertise of both companies. PVI will provide Oshkosh with armored hulls outfitted with their advanced armor technology, and Oshkosh will take advantage of its production capability and engineering expertise to provide completed vehicles with the performance, reliability, and quality standards that have become synonymous with Oshkosh Truck tactical wheeled vehicles. The vehicle, dubbed the Alpha, is a 13-ton, 4x4 armored vehicle with room for eight occupants. It has a v-shaped hull and is designed to meet or exceed all ballistic and mine protection capabilities specified under the MRAP requirement. The vehicle is also fully air-transportable, making it simpler to re-deploy once in theater. The MRAP program is expected to greatly increase the safety of Marines and soldiers in the field.
About Oshkosh Truck Corporation
Oshkosh Truck Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire and emergency and military vehicles and vehicle bodies. Oshkosh's products are valued worldwide by rental companies, fire and emergency units, defense forces, municipal and airport support services, and concrete placement and refuse businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, log on to www.oshkoshtruck.com.
About Protected Vehicles, Inc.
Protected Vehicles, Inc. designs and manufactures mine and ballistic protected vehicles using advanced U.S. technology. Founded by Garth Barrett, a pioneer in mine blast and ballistic protection, PVI is headquartered in North Charleston, South Carolina.
This press release contains statements that the company believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding the company's future financial position, business strategy, targets, projected sales, costs, earnings, capital spending and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as "expects," "intends," "estimates," "anticipates," or "believes" and similar expressions 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 that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the company's markets, the company's ability to successfully integrate the JLG acquisition, the consequences of financial leverage associated with the JLG acquisition, risks related to reductions in government expenditures, the uncertainty of government contracts and the company's ability to turnaround its Geesink Norba Group business. Additional information concerning these and other factors is contained in the Company's filings with the Securities and Exchange Commission.
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