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Newer New York City Buses with BAE Systems' Hybrid Propulsion Cost Less to Own and Operate, U.S. Government Says

NEW YORK--A new government report says New York Citys newer hybrid-powered buses cost 40 percent less to maintain and 24 percent less to operate than earlier-generation hybrids. Those buses, the second-generation Orion VII from Daimler Buses North America, are powered by BAE Systems HybriDrive® diesel-electric propulsion system.

The U.S. Department of Energys National Renewable Energy Laboratory (NREL) evaluated the performance of New Yorks second-generation Orion VII buses from February 2006 to January 2007. The buses studied were compared to the citys first-generation Orion VII buses. (Click here to view the report (http://www.eere.energy.gov/vehiclesandfuels/avta/pdfs/heavy/ bae-orion_he_buses.pdf Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.))

The NREL study shows that our commitment to continually improving the HybriDrive system is paying off for our customers, said Rich Hopf, vice president of vehicle systems for BAE Systems in Johnson City, New York. We have improved reliability, simplified maintenance, and reduced the cost of keeping the buses on the road. We expect even better results with the addition of lithium-ion energy storage in 2008.

BAE Systems is offering lithium-ion energy storage on Daimlers Orion VII Next Generation transit buses. Lithium-ion technology is more efficient, lasts longer, and weighs less than the lead-acid batteries in use today. The Orion VII Next Generation buses were introduced to the North American market in 2007.

The gains in operating and maintenance costs as referenced in the latest NREL report are a clear indication of the benefits of hybrid buses in public transit applications, said Patrick Scully, chief commercial officer for Daimler Buses North America. These results are proof positive for not only New York City but for all of our other customers that are operating Orion hybrid buses. Further, for cities looking to adopt hybrid buses, the NREL report provides excellent empirical data for their decision-making process.

More than 1,000 Daimler buses with BAE Systems drive systems are in service in cities such as New York, San Francisco, and Toronto, and 1,500 more are on order for cities including New York, Houston, and Ottawa. The New York City fleet is the largest hybrid bus fleet in the world.

The buses in the study incorporated several improvements to the hybrid electric propulsion system, in use in New York since 1998. Factors contributing to the performance improvements included a simplified cooling-system design, improved battery diagnostics, and better training of mechanics.

NREL is the Department of Energys primary lab for renewable energy and energy efficiency research and development.

About BAE Systems

BAE Systems is the premier global defense and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 96,000 employees worldwide, BAE Systems' sales exceeded $27 billion in 2006*.

*On a pro forma basis, assuming BAE Systems had owned Armor Holdings Inc for the whole of 2006