Orion Bus Industries Completes First Production Hybrid Bus Order

NEW YORK--Feb. 2, 20058, 2005--

New York's Roosevelt Island also chooses hybrid with order for four buses

Orion Bus Industries has completed deliveries on the first of two production orders for hybrid electric buses to New York City's transit agency and has begun deliveries on the second order. By the end of 2005, MTA New York City Transit will operate the world's largest fleet of hybrid buses, totaling 325 units.

In some two million miles of revenue service, the initial 125-unit production fleet -- using the HybriDrive(TM) diesel-electric propulsion system by BAE Systems -- has improved fuel economy more than 30 percent compared to conventionally powered buses, while significantly reducing emissions: 90 percent less particulate matter, 40 percent fewer oxides of nitrogen, and 30 percent fewer greenhouse gases. The buses also outperform their conventional counterparts, running quieter and delivering bottom-line fuel savings.

Orion currently is filling a second production order, for 200 of its 40-foot Orion VII low-floor hybrid models, with deliveries scheduled to be completed this year.

Meanwhile, the Roosevelt Island Operating Corp. of the State of New York has ordered four Orion VII hybrid buses for use in the island's transit-bus fleet. The buses, with a similar configuration to those operated by New York City Transit, are scheduled for delivery in 2006.

"Orion Bus Industries is proud of its role in delivering clean, efficient technology to the streets of New York," said Mark Brager, Orion's vice president of sales. "These buses are delivering on the dual promise of lower emissions and better fuel economy while also improving vehicle performance and reducing maintenance needs for transmission and brakes."

At the heart of the Orion VII hybrid bus is the HybriDrive(TM) propulsion system provided by BAE Systems. The system propels the bus with a single electric motor that is powered by a diesel-driven generator and an energy storage unit. Among the system's benefits:

-- The engine is smaller than that used in conventional buses and runs at optimum speed for clean operation and efficiency.

-- The design offers quicker acceleration, helping drivers merge into heavy traffic.

-- Customers enjoy a quieter ride than on a conventional diesel bus.

-- The system design eliminates the transmission, thereby removing a major maintenance item on vehicles operated in heavy stop-and-go conditions.

-- A regenerative braking system uses the drive motor to slow the bus, effectively turning the motor into a generator to help recharge the energy storage system. This feature saves energy and also reduces brake wear by about one-third, reducing the frequency of brake maintenance.

"Our hybrid propulsion technology leads the transit industry in combining cleaner emissions and reduced fuel consumption," said Hank McGlynn, vice president of Power Systems for BAE Systems. "This is a powerful combination for transit agencies seeking to both reduce fleet emissions and combat the escalating cost of diesel fuel."

Orion Bus Industries, the Mississauga, Ontario-based unit of DaimlerChrysler Commercial Buses North America, and BAE Systems worked with New York City Transit for more than six years to evaluate a demonstration fleet of 10 hybrid buses. The demonstration units were based on the Orion VI low-floor platform, while the 325 production units are based on the latest Orion VII low-floor design, chosen for its ease of entry and exit, particularly by handicapped passengers.

Orion and BAE Systems filled the initial 125-bus order during 2004 and will deliver 200 buses, fulfilling the second New York hybrid order, by the end of 2005. The 325 units will comprise the world's largest fleet of hybrid electric buses.

Orion is a brand of DaimlerChrysler Commercial Buses North America, which operates production facilities in Greensboro, N.C.; Oriskany, N.Y.; and Mississauga, Ontario. DaimlerChrysler Commercial Buses North America produces and markets a wide range of commercial bus and coach products under the Orion, Setra, and Dodge Sprinter brands and is a unit of DaimlerChrysler, the world's leading manufacturer of buses and coaches for Class 6 and higher, with more than 32,000 chassis and complete buses produced annually for revenue of more than $4.3 billion. For more information, visit www.orionbus.com or www.dcbusna.com.

BAE Systems is an international company engaged in the development, delivery, and support of advanced defense and aerospace systems in the air, on land, at sea and in space.

BAE Systems North America is one of America's foremost national security, aerospace and information systems companies. It is a leading provider of electronic and information-based systems and knowledge-based solutions that meet its customers' mission effectiveness and operational safety needs. BAE Systems North America employs more than 30,000 people at sites across the United States and the United Kingdom and generates more than $5 billion in annual sales.