KELOWNA, B.C. (June 20, 2000) — Western Star Trucks Holdings Ltd. confirmed that it is in discussions with a third party to investigate a merger offer.

The Kelowna, B.C.-based truckmaker made the announcement responding to a request from the Toronto Stock Exchange amid speculation that it would soon be acquired. The companyÕs shares jumped 23.68% to $23.50 before the TSE halted trading shortly after 10 a.m. today.

Western Star’s board of directors was expected to meet today to weigh an offer from Freightliner LLC, North America’s largest truck manufacturer, according to Chicago-based Starks News Service.

In a statement, Western Star said there was no assurance that any talks would result in an agreement or transaction.

Western Star is considered an attractive property because it builds custom heavy trucks at plants on both coasts in North America. One facility opened late last year in North Charleston, S.C., and the company’s factory in Kelowna is scheduled to be replaced by a modern new facility next year.

Western Star also produces transit buses through its Orion subsidiary in Mississauga, Ont., and Oriskany, N.Y. Freightliner’s Thomas Built Buses subsidiary is a leader producer of school buses.