Scania Paves the Way for Sustainable Transport with Groundbreaking Engine Technology and Hybrid Vehicles

STOCKHOLM, Sweden--Regulatory News:

Scania’s new engine platform is now ready for market introduction. Even today, these engines, without aftertreatment, meet the stricter exhaust standards that go into effect in the EU in two years. Also premiering are Scania’s third generation ethanol engines, which represent up to a 90 percent reduction of carbon dioxide emissions. In addition, Scania is entering a crucial phase in the testing of a commercially viable hybrid technology – one that will make very large fuel and environmental savings possible.

After five years of development, Scania’s new Euro 5 engine platform is now ready for the market, starting with the 5- and 6-cylinder inline engines. It will gradually replace the current platform over the next few years. Euro 5 become mandatory with in the European Union in October 2009.

Scania (STO:SCVA) (STO:SCVB) is the first truck manufacturer to achieve Euro 5 without exhaust gas aftertreatment. This is the result of a number of new, groundbreaking technologies, including a new fuel injection system, which Scania uses to control performance and fuel efficiency.

Right from the start, the new platform has been optimised for exhaust gas recirculation (EGR), and for Scania XPI, the new injection system developed jointly with Cummins. This is to ensure that the engines will meet established targets and standards for performance and fuel economy, as well as for consistent environmental performance, robustness and convenient operation. With EGR, exhausts are lowered already during combustion, eliminating the need for aftertreatment equipment and tanks to carry additives on-board the vehicle.

Scania has secured all strategic steps in engine development and performance control: basic engine development and manufacturing, engine management, fuel injection and emission control.

Scania’s engines can be operated using all renewable fuels that are available today.

Additional press material about Scania’s new engine platform, hybrid technology and position concerning renewable fuels − including other product and service innovations − is available at Scania’s website, www.scania.com.

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 32,800 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2006, invoiced sales totalled SEK 70.7 billion and the net income amounted to SEK 5.9 billion.