The Board of Scania Reiterates Its Rejection of MAN’s Offer as It Substantially Undervalues Scania

STOCKHOLM, Sweden--According to reports in the market MAN has, in parallel to proposing friendly talks between the two companies, today entered the market as an aggressive buyer of high-voting A-shares in Scania (STO:SCVA) (STO:SCVB).

Following these reports, the Board of Scania reiterates its rejection of MAN's unsolicited offer. Furthermore, the Board of Directors emphasises, having consulted with its financial advisers, that the offer substantially undervalues Scania in two principal respects:

-- The earnings outlook for the standalone company is significantly above current market consensus;

-- MAN's announced synergies materially underestimate the true synergy potential of a combination of Scania and MAN.

Because of conflict of interest the representatives of Volkswagen on Scania’s Board have and will abstain from participating in any decisions regarding MAN.

Further information will be provided in connection with the third quarter results on 16 October, 2006.

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.

Scania’s press releases are available on the Internet at www.scania.com.

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