Oshkosh Corporation Announces Second Quarter Fiscal 2009 Non-Cash Impairment Charges

Oshkosh Corporation (NYSE: OSK), a leading manufacturer of specialty vehicles and vehicle bodies, today announced that it anticipates recording non-cash impairment charges of $1.2 - $1.5 billion for the write-down of goodwill and other indefinite-lived intangible assets in the second quarter of fiscal 2009. The Company expects the impairment charges to be largely non-deductible for income tax purposes.

“While the impairment charges are being driven by the short-term economic environment, we believe the long-term prospects remain promising for our market-leading businesses,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “The impairment charges are entirely non-cash. Oshkosh remains a strong company and continues to have sufficient liquidity.”

Under the Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and Other Intangible Assets, the Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate an impairment may have occurred. In connection with its second quarter close process, the Company determined that indicators of potential impairment under the accounting requirements of SFAS No. 142 were present as a result of the sustained decline in the price of the Company’s common stock subsequent to its previous fiscal year-end when its share price approximated book value, as well as the further deteriorating macro-economic environment, particularly in construction markets in the United States and Europe.

Accordingly, with the assistance of a third-party valuation firm, the Company began an assessment of the fair values of the Company’s reporting units. The preliminary results indicate that impairments will be recognized in several of the Company’s reporting units, with the largest charge occurring in the access equipment segment. The Company plans to complete the impairment analysis prior to the release of its second fiscal quarter results. These non-cash charges will have no direct impact on the Company’s cash flows or liquidity, and they are excluded from the calculations of the Company’s financial covenant ratios contained in its amended credit agreement.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, military, commercial and fire & emergency vehicles and vehicle bodies. Oshkosh’s products are valued worldwide by rental and construction companies, defense forces, fire & emergency units, municipal and airport support services, and concrete placement and refuse businesses where high quality, superior performance, rugged reliability and long-term value are paramount.

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 the consequences of financial leverage associated with the JLG acquisition; a deterioration or downgrade in credit agency ratings; the amount of the second quarter impairment charge pursuant to SFAS No. 142; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and credit crisis; the Company’s ability to obtain cost reductions on steel and other raw materials following sharp cost increases in 2008, obtain other cost decreases or achieve product selling price increases; the duration of the global recession and its adverse impact on the Company’s share price, 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 and the uncertainty of government contracts; risks associated with international operations and sales, including foreign currency fluctuations; the Company’s ability to turn around its Geesink business; risks related to the collectability of receivables during a recession, especially access equipment receivables; 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.