Scania: Broad Launch of Scania's New Buses and Coaches Focus on Alternative Fuels

Today Scania (STO:SCVA) (STO:SCVB) began the launch of its newbuses and coaches for journalists and customers from throughoutEurope. The broadest range in the market, it includes urban, suburbanand intercity buses as well as tourist coaches in numerous designs.The top model is the head-turning Scania Irizar PB tourist coachfeaturing the new 470 hp engine, which offers exceptional comfort,driver appeal and performance.

With its ethanol engines, for more than 15 years Scania has beenmeeting the ever-stronger demands from customers and passengers thatbus services should operate on alternative fuels. Scania also offerengines that run on Rapeseed Methyl Ester (RME), biogas or naturalgas.

"We have invested in ethanol because this renewable fuel caneasily be produced locally. Production is increasing significantlyworldwide, among other things because it is a good alternative fuelfor cars.

"With today's robust technology, Scania's ethanol-powered buseshave the same high reliability as diesel buses. We know this aftermore than 15 years of tough operation in Stockholm city traffic," MrJohansson declares.

Scania's ethanol engines are based on robust, highly efficientdiesel technology. They offer an attractive ethanol-powered option inheavy vehicles as well. The fuel is pure ethanol with an ignitionimprover additive. For decades, Scania has developed ethanol-poweredvehicles on a large scale, mainly in collaboration with StorstockholmsLokaltrafik (SL), the Swedish capital's regional transport company.

Today all SL buses in central Stockholm run on alternative fuels.This has led to a sharp reduction in the environmental impact ofpublic transport. The technology is thoroughly tested and, accordingto SL, does not complicate the operation of its growing fleet(approaching 600 ethanol buses).

Scania ethanol buses have also attracted heavy interest from othercountries and are now being tested in various locations. As the onlybus manufacturer in the BioEthanol for Sustainable Transport (BEST)project, which promotes large-scale use of ethanol as a vehicle fuel,Scania expects to deliver city buses for test operation in tenlocations worldwide - not only in Europe but also in Asia and SouthAmerica.

Scania considers ethanol the most interesting renewable fuel forfuture vehicle operation. Ethanol has a lower energy density thandiesel or petrol, which means higher consumption, but liquid fuel iseasier to distribute and handle than biogas or natural gas. Existinginfrastructure can be used and no heavy on-board pressurised gas tanksare required.

Ethanol is usually produced from sugar cane or sugar beets, butthe raw material may also be cereals or biomass, for example forestwaste. Production is sharply increasing across the world. With simpleadjustments, ethanol can be used in petrol-powered vehicles, i.e.vehicles with Otto engines.

With a gradually increased percentage of ethanol in petrol, we canachieve a smooth transition to alternative fuels in cars. Meanwhileheavier vehicles in cities and towns can run on Scania ethanolengines, fuelled by pure ethanol with ignition improver additive.

Scania is one of the world's leading manufacturers of trucks andbuses for heavy transport applications, and of industrial and marineengines. A growing proportion of the company's operations consists ofproducts and services in the financial and service sectors, assuringScania customers of cost-effective transport solutions and maximumuptime. Employing 30,000 people, Scania operates in about 100countries. Research and development activities are concentrated inSweden, while production takes place in Europe and South America, withfacilities for global interchange of both components and completevehicles. In 2005, invoiced sales totalled SEK 63.3 billion and thenet income amounted to SEK 4.7 billion. Bus chassis production takesplace in Sweden and Brazil. Bodybuilding takes place in Poland andRussia.

Scania press releases are available on the Internet,www.scania.com

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