Breakthrough for Scania on the Chinese Market - Sales of 50 Tractor Units to Leading Gas Supplier

STOCKHOLM, Sweden--June 8, 2006--

Scania (STO:SCVA)(STO:SCVB) will supply the XinAo Group with 50 tractor units for the company's gas transportation around 18 cities in China.

"Scania's sales in China are focused on operators who require vehicles with low operating cost and high uptime. XinAo Group represents this customer category," says Mats Harborn, responsible for Scania in China.

XinAo Group, which is a private company listed on the Hong Kong Stock Exchange since 2001, operates within urban gas, energy equipment, bio-chemical and real estate. Today, the company delivers urban gas to more than 50 cities, such as Changsha, Shijiazhuang and Dongguan, covering a population of approximately 30 million people. The company has for three consecutive years been awarded one of the "Best Small Companies in the World" by Forbes.

Scania was chosen as supplier to XinAo Group due to the outstanding fuel economy of its trucks and the service commitment made by Scania in China.

"Our strategy is to provide customers with the most professional sales and service organisation in the industry, and therefore we focus on recruiting and training of competent personnel. Scania's objective is to be a long term partner for the most demanding customers," says Mats Harborn.

The trucks ordered by XinAo group are Scania P-series, three-axle tractor units powered by an 11-litre 380 hp engine. The trucks will be used for transport of gas (LNG) from Xinjiang to eastern China and are expected to clock very high annual mileages.

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company's operations consists of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 30,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production plants are located in Europe and South America, with facilities for the global exchange of both components and finished vehicles. In 2005, revenue totalled SEK 63.3 billion and net income amounted to SEK 4.7 billion.