PACCAR announces dividends; proposes stock split.

BELLEVUE, Wash.--(BUSINESS WIRE)--Dec. 10, 1996--Charles M. Pigott, chairman and chief executive officer of PACCAR Inc, reported that the board of directors in its meeting today, took the following actions:

First, an extra cash dividend in the amount of $1.50 per share was declared, payable on Jan. 6, 1997, to stockholders of record at the close of business on Dec. 20, 1996.

In addition the board declared a first quarter 1997 cash dividend in the amount of 25 cents per share payable on March 5, 1997, to stockholders of record at the close of business on Feb. 20, 1997. Final sales and net income amounts for 1996 will be announced in the early part of February 1997.

Today the board of directors of PACCAR Inc announced that it will recommend to stockholders that the company's Certificate of Incorporation be amended to increase the number of authorized shares of common stock and to reduce its par value. A resolution proposing specific language for the amendment will be considered at a special meeting of the board early in 1997 and submitted for approval of stockholders at the annual meeting in April. If there is favorable action by the stockholders on the amendments, it is the intention of the board to split the stock (i.e. one additional share of each share held) and increase the regular quarterly dividend to 15 cents per share effective with the second quarter 1997 dividend payment.

PACCAR anticipates that 1997 business will continue its cyclical trends with continued softening in its major truck markets. -0- www.paccar.com

CONTACT: Stephen J. Buckner, 206/455-7885