The Board of Scania Rejects MAN's Modified Offer

STOCKHOLM, Sweden--The Board of Scania (STO:SCVA)(STO:SCVB), having consulted its financial advisers, rejects MAN’s modified offer. As in the case of MAN’s initial offer, the modified offer substantially undervalues Scania, in particular 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 long term synergy potential of the combination.

The Board of Scania indicated to MAN yesterday that it was open for discussions between the two management teams provided MAN withdrew its offer. The Board regrets that MAN has decided to maintain the hostile nature of its offer.

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

The Board of Directors

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.

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