G. Glen Morie
                                                                  (425) 468-7499

FOR IMMEDIATE RELEASE


                       PACCAR RENEWS SHAREHOLDER RIGHTS PLAN

BELLEVUE, WASHINGTON, DECEMBER 10, 1998 - The Board of Directors of PACCAR Inc
today unanimously adopted a new Preferred Share Purchase Rights Plan ("poison
pill"), replacing as of February 19, 1999 the current plan which was scheduled
to expire at the end of 1999.  The new  plan will expire in February 2009 and is
very similar to the current plan.


In connection with the adoption of the new Rights Plan, the board authorized the
redemption of the rights issued under the current Plan for a one-time payment of
$.0043 for each right outstanding on February 19, 1999.  Each share of common
stock has one right. The redemption payment to shareholders will be included
with the quarterly dividend payment on March 5, 1999.  The company intends to
record the redemption payment as a dividend for tax purposes.


Under the new Rights Plan, the rights will be exercisable if a person or group
acquires 15 percent or more of PACCAR's common stock or announces a tender offer
which would result in ownership of 15 percent or more of the common stock.  Each
right will entitle shareholders to buy one ten-thousandth of a share of an
amended series of junior participating preferred stock at an exercise price of
$200.


If a person or group acquires 15 percent or more of PACCAR's outstanding common
stock, each right will entitle its holder to purchase additional PACCAR common
shares at a substantially reduced price.  In addition, if PACCAR is acquired
after the rights are exercisable, each right will entitle its holder to purchase
the acquiring company's common shares at a substantially reduced price.  The
acquiring company or person will not be entitled to exercise these rights.


Prior to the acquisition by a person or group with beneficial ownership of 15
percent or more of



the company's common stock, the rights are redeemable for $.01 per right at the
option of the board of directors.  Also, under the new Rights Plan, the board of
directors may reduce the 15 percent ownership threshold referred to above to ten
percent.


The dividend distribution of the new rights will be made on February 19, 1999,
payable to shareholders of record on that date, and is not taxable to
shareholders.  Adoption of the new Rights Plan is a continuation of the
company's existing defenses and was not taken in response to any specific
takeover threat.


PACCAR, a $6.5 billion company, is a leader in the design, development and
manufacture of high quality light-, medium- and heavy-duty trucks.  The company
sells its trucks worldwide under the Kenworth, Peterbilt, DAF and Foden
nameplates.  It also provides financial services and distributes truck parts
related to its principal business.  In addition, the Bellevue, Washington-based
company manufactures industrial winches and sells general automotive parts and
accessories through its retail outlets.


PACCAR shares are traded on the NASDAQ Exchange, symbol PCAR, and its homepage
can be found at www.paccar.com.






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