Department of Defence is New Scania Customer; 81 Trucks to Australia


SODERTALJE, Sweden, March 18, 2002 (PRIMEZONE) -- Scania Australia Pty Ltd., Scania's (NYSE:SCVA) wholly-owned subsidiary in Australia, has signed its first contract with the Australian Department of Defence which has placed an order for 81 Scania all-wheel drive vehicles.

The order is for four types of vehicles, all powered by Scania's proven 11-litre diesel engine and all equipped with all-wheel drive. The total number is comprised of 67 platform trucks, 8 crane trucks, 2 tippers and 4 tankers.

Deliveries will be made successively this year.

Commenting on the deal, Kaj Farm, MD of Scania Australia since the beginning of the year, notes that the order represents a breakthrough for Scania Australia, although Scania already has a tradition of supplying robust vehicles to defence authorities.

Apart from the fact that the vehicles comply with high military standards of performance and durability, one of Scania's strongest selling points is that it does not produce purpose-built military vehicles. The vehicles which Scania has modified for military purposes and supplied for decades to several European defence authorities are based entirely on the company's commercial product range.

This means that maintenance costs can be held at a particularly low level, and that parts and service are available through Scania's commercial service network.

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 28,300 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 2001, turnover totalled SEK 53,000 million and the result after financial items was SEK 1,500 million. Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania's vehicles are sold outside Sweden. Scania press releases are available on the Internet, www.scania.com

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