Stewart & Stevenson Announces Sales Agreement With DaimlerChrysler

Stewart & Stevenson TVS Gains Exclusive Right to Market Mercedes-Benz Military Gelandewagen to U.S. Government Agencies

HOUSTON, Dec. 11 -- Stewart & Stevenson Tactical Vehicle Systems, LP (TVS), a manufacturer of medium tactical vehicles for the U.S. Army, announces that it has entered into an agreement with DaimlerChrysler, which gives TVS the exclusive right to market the Mercedes- Benz Military Gelandewagen (G-Wagen) series of vehicles to United States Government authorities, including all federal, state, and local government agencies.

The G-Wagen military series includes the Open Wagon, Van, Station Wagon, Light 4x4 Tactical Wheeled Vehicle, and a Chassis with Cab. Since 1979 more than 60,000 of these vehicles have been sold to military customers worldwide. The G-Wagen has been continuously upgraded with the latest in automotive off- road and on-road technology.

The G-Wagen provides superb mobility, reliability, and economy, both off- road and on-road. It optimally fulfills its intended mission as a vehicle for transporting personnel or loads at a maximum two metric tons, and for towing trailers or artillery. Designed for air landings, the vehicle can be transported easily as an external load below a helicopter or as an internal load for aircraft, including the U.S. Marine Corps V-22 Osprey. It can also be air-dropped by parachute. The G-Wagen is offered in several armored versions, with protection ranging from small arms to mine blast protection. It has performed successfully for German special forces in Afghanistan and U.S. Marine Corps Force Recon Units in the Afghanistan and Iraq conflicts. Powered by a modern turbocharged common rail diesel engine, the G-Wagen military series meets the latest requirements of modern armed forces with respect to fuel efficiency and exhaust emissions.

The G-Wagen series complements the existing FMTV product line made by TVS, which includes 15 active variants and weight capacities ranging between 2.5 and 11 tons. Planned FMTV models under development will extend the product range to 15 metric tons in an 8 X 8 configuration.

Stewart & Stevenson has been the exclusive supplier to the U.S. Army of the FMTV since 1991, including trucks and companion trailers for on- and off- road use. The FMTV is produced in Stewart & Stevenson's state-of-the-art facilities located 50 miles west of Houston in Sealy, Texas. The company has manufactured and delivered more than 22,000 trucks and trailers and has achieved 42 consecutive months of 100 percent on-time delivery of trucks and 33 consecutive months of on-time trailer delivery performance.

Stewart & Stevenson was recently awarded the FMTV A1 Rebuy production contract, potentially worth more than $2 billion. The contract includes production that could reach nearly 11,000 FMTV trucks and trailers over the coming five years, with an option for 12,000 additional vehicles.

Stewart & Stevenson Services, Inc. , founded in 1902, is a billion-dollar company that manufactures, distributes, and provides service for a wide range of industrial products and diesel-powered equipment to key industries worldwide, including power generation, defense, airline, marine, petroleum and transportation. For more information on Stewart & Stevenson visit www.ssss.com or visit www.fmtvtruck.com for more information about Stewart & Stevenson Tactical Vehicle Systems, LP.

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