WESTPORT, Conn.--(BUSINESS WIRE)--March 25, 2004--Terex
Corporation (NYSE: TEX) today announced that its joint venture,
American Truck Company, LLC ("ATC"), in which Terex has a two-thirds
interest, has been awarded and entered into a contract with the U.S.
Marine Corps to supply three prototype Logistic Vehicle System
Replacement ("LVSR") trucks. This contract, valued at $5.6 million,
represents the first phase in a two-part process to determine the
vehicle that ultimately will be selected by the U.S. Marine Corps for
a total of up to 1,022 truck order. ATC is one of only two suppliers
chosen to advance to the next phase of the proposal and evaluation
process. The announcement by the U.S. Marine Corps follows the
conclusion of a competition between ATC and other U.S. military truck
manufacturers.
The U.S. Marine Corps will put the three ATC prototype vehicles
through a 12,000-mile accelerated endurance test, performance testing,
and an operational assessment conducted by Marine operators and
maintainers. The LVSR program is intended to replace the Marine Corps'
existing heavy fleet with more capable, robust vehicles. The
anticipated vehicles will include cargo, fifth wheel and wrecker
variants. The current contract is only for the system development and
demonstration phase. Fabrication and testing will be limited to the
cargo variant only. The three prototype LVSR trucks will be
manufactured by ATC in Fort Wayne, Indiana and will be completed by
March 2005.
ATC trucks are based on the proprietary design developed and
tested over many years by Terex's subsidiary, Tatra a.s., and feature
a "central backbone" chassis design with an all-wheel drive suspension
that can be configured as 4x4, 6x6, 8x8, 10x10, and even 12x12. This
modularity of the chassis and suspension design lends itself to a
diverse range of vehicle configurations, including cargo carriers,
load handling systems, weapon platforms, tankers, firefighting
vehicles, aerial work platforms and more, with a payload range from
five to 40 tons.
"Terex is both proud and grateful for this opportunity to compete
for the supply of trucks and services to one of the military's most
discriminating customers," commented Ronald M. DeFeo, Terex's Chairman
and Chief Executive Officer. "We are confident in both our team of
dedicated employees and in our product, and we are certain that we
will deliver on our promise of a high quality product that will meet
or exceed the requirements of the U.S. Marine Corps."
Safe Harbor Statement
The above contains forward looking statements based on Terex's
current expectations and projections about future events. Because
forward-looking statements involve risks and uncertainties, actual
results could differ materially. Such risks and uncertainties, many of
which are beyond Terex's control, include among others: Terex's
business is highly cyclical and weak general economic conditions may
affect the sales of its products and its financial results; the
sensitivity of construction, infrastructure and mining activity and
products produced for the military to interest rates and government
spending; the retention of key management personnel; Terex's
businesses are very competitive and may be affected by pricing,
product initiatives and other actions taken by competitors; the
effects of changes in laws and regulations; Terex's business is
international in nature and is subject to changes in exchange rates
between currencies, as well as international politics; the ability of
suppliers to timely supply Terex parts and components at competitive
prices; the financial condition of suppliers and customers, and their
continued access to capital; Terex's ability to timely manufacture and
deliver products to customers; compliance with applicable
environmental laws and regulations; and other factors, risks,
uncertainties more specifically set forth in Terex's public filings
with the SEC. Actual events or the actual future results of Terex may
differ materially from any forward looking statement due to those and
other risks, uncertainties and significant factors. The
forward-looking statements herein speak only as of the date of this
release. Terex expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statement included in this release to reflect any changes in Terex's
expectations with regard thereto or any changes in events, conditions,
or circumstances on which any such statement is based.
Terex Corporation is a diversified global manufacturer based in
Westport, Connecticut, with 2003 revenues of $3.9 billion. Terex is
involved in a broad range of construction, infrastructure, recycling
and mining-related capital equipment under the brand names of Advance,
American, American Truck Company, Amida, ATC, Atlas, Bartell, Bendini,
Benford, Bid-Well, Canica, Cedarapids, Cedarapids/Standard Havens, CMI
Johnson Ross, CMI Terex, CMI-Cifali, Comedil, Demag, Fermec, Finlay,
Franna, Fuchs, Genie, Grayhound, Hi-Ranger, Jaques, Load King, Lorain,
Morrison, O&K, P&H, Payhauler, Pegson, Peiner, Powerscreen, PPM,
Re-Tech, RO-Stinger, Royer, Schaeff, Simplicity, Tatra, Terex,
TerexLift, Terex Power, Terex Recycling, Terex Telelect and Unit Rig.
Terex offers a complete line of financial products and services to
assist in the acquisition of Terex equipment through Terex Financial
Services. More information on Terex can be found at www.terex.com.
CONTACT: For Terex Corporation, Westport
Tom Gelston, 203-222-5943
SOURCE: Terex Corporation