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SinterCast Compacted Graphite Iron to Be Used In New Audi V8 TDI Engine

17 May 1999

SinterCast Compacted Graphite Iron (CGI) to Be Used In New Audi V8 TDI Diesel Engine
  Audi, World Technology Leading Car Manufacturer, Launches State-of-the-Art
          Direct Injected V8 Diesel Engine With an Engine Block Cast
                    in SinterCast Compacted Graphite Iron

    STOCKHOLM, Sweden, May 17 -- SinterCast is pleased to report
that the German car manufacturer Audi, at the Vienna Motor Symposium in
Austria, on May 6, 1999, announced its new V8 TDI Diesel engine with the
engine block designed in SinterCast CGI and produced by the German foundry
Halberg Guss using the SinterCast Process Control Technology.
    The Audi V8 TDI forms a milestone in automotive design and in the use of
CGI for a high performance passenger car Diesel engine.
    In its announcement Audi further revealed:

    --  The engine has a displacement of 3.3 litres with a power output of
        165 kW (225 hp) at 4000 rpm. It is the first Diesel engine in Audi's
        range with a Common Rail injection system.

    --  With 4-valve technology, two adjustable turbine geometry (ATG)
        turbochargers and cooled Exhaust Gas Re-circulation (EGR), this engine
        fulfills the stringent exhaust emissions standards according to
        EURO III.

    --  The engine has a bore and stroke of 78.3 x 86.4 mm and a 90-degree
        cylinder bank angle. The increased material strength of Compacted
        Graphite Iron allowed a 10% weight reduction of the engine block in
        comparison with Grey Iron.

    --  The V8 TDI sets new standards and, from a cubic capacity of only
        3.3 litres, develops a maximum torque of 480 Newton metres, which is
        achieved at a mere 1800 rpm and remains at this level up to 3000 rpm.
        A peak value has been achieved with the specific performance of almost
        50 kW per litre of cubic capacity. Its optimum specific fuel
        consumption is only 205 grams per kW hour and is therefore extremely
        low for an eight-cylinder engine.

    --  With its TDI engines, Audi has revolutionised the world of Diesel, and
        has proved that this engine concept can also compete with the petrol
        engine in terms of dynamism and driving enjoyment - with consumption
        which is approximately 30 percent lower and exemplary torque even at
        very low engine speeds. It therefore manages to reconcile two
        seemingly irreconcilable opposites such as enjoyment of sporty driving
        on the one hand and mobility and extensive range on the other hand.

    Mr. Joachim Braun, Managing Director of Halberg Guss GmbH comments:
    "We are certainly pleased that Audi trusts in the development and casting
competence of Halberg Guss and together with SinterCast in partnership has
followed new paths with a sophisticated material"

    Mr. Bertil Hagman, President and CEO of the SinterCast Group comments:
    "The announcement that Audi has chosen SinterCast CGI for the engine block
in its new V8 TDI engine is a milestone for CGI as a new engine material and
for the SinterCast Process Control Technology.
    In the V8 TDI engine, the engine block material has contributed to setting
new standards for automotive specific performance and fuel consumption.
    It is an important recognition of the SinterCast technology that Audi,
well known technology leader with the highest reputation for Diesel engine
technology, has appointed the quality foundry Halberg Guss to produce the
engine block using the SinterCast Process Control Technology to meet its
exacting quality standards.
    SinterCast is pleased to be working with Halberg Guss, whose foundry
expertise in the production of the highest quality cast iron has resulted in a
unique production line installation of the SinterCast System 2000 to provide
Europe's first high volume production facility for automotive engine blocks in
CGI. The facility meets the highest quality standards demanded by the
industry."

    Stockholm, May 1999
    SinterCast AB (publ)

    Bertil Hagman

    SinterCast is a listed Swedish company, which developed and owns the
SinterCast Process, a patented on-line Process Control System which enables
the production of high quality Compacted Graphite Iron (CGI) components on an
industrial scale.  CGI is an intermediate form of cast iron between Grey iron
and Ductile iron, retaining much of the castability properties of Grey Iron
but with a material tensile and fatigue strength approximately double that of
Grey Iron.  The stiffness of CGI is also increased in the range of 30-40% when
compared to Grey Iron.  These enhanced properties can make it an ideal choice
for an advanced Diesel engine application where both increased strength and
reduced weight are required.

    CONTACT:  SinterCast AB, +46-8-660-7750, or fax: +46-8-661-7979, e-mail:
info@sintercast.com, Internet: http://www.sintercast.com