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Terra Environmental Technologies is Exclusive Initial Fill Diesel Exhaust Fluid Provider to Daimler Trucks North America

SIOUX CITY, Iowa--Terra Industries Inc. (“Terra”) announces that Terra Environmental Technologies Inc. (“TET”), a wholly-owned Terra subsidiary, has signed a multiyear agreement with Daimler Trucks North America LLC (“DTNA”) to supply all its Selective Catalytic Reduction (“SCR”)-equipped vehicles with an initial fill of TerraCair UltrapureŽ Diesel Exhaust Fluid (“TerraCair DEF”), and through its distribution partners, ultimately supply its dealers and distributors with TerraCair DEF in a variety of package sizes and dispensing configurations.

Under terms of the agreement, DTNA will offer TerraCair DEF, an ultrapure solution certified by the American Petroleum Institute, for SCR in their diesel powered vehicles to achieve the near-zero emissions of nitrogen oxides required by EPA regulations set to take effect on January 1, 2010.

TET has the flexibility to ensure quality and supply by sourcing TerraCair DEF from a number of Terra’s six North American nitrogen products manufacturing facilities.

As a leading North American DEF producer, TET has developed a complete supply chain for TerraCair DEF that includes manufacturing and distributing the product, installing dispensing equipment, and providing field services and employee training. Consummation of this agreement marks continued successful execution of Terra’s environmental strategy.

Noted Terra President and CEO Michael Bennett, “We’re pleased to achieve yet another milestone in our efforts to position TET as the leading North American DEF supplier. 2010 is fast approaching and with it will come new, more stringent emissions reductions requirements for diesel engines. TET has laid the groundwork to provide a viable solution to diesel engine manufacturers who are gearing up to use SCR technology to meet their emissions reduction obligations. We’re proud to work with Daimler Trucks North America in this important effort, and believe that this agreement represents a mutually beneficial relationship between our companies.”