Breakthrough on the Chinese vehicle market for Opcon's business area Engine Efficiency

 Breakthrough on the Chinese vehicle market for Opcon's business area
Engine Efficiency

Energy and environmental technology group Opcon's subsidiary, Opcon
Technology (Suzhou) CO., Ltd (OTS), has signed a Letter of Intent (LOI)
on the long-term production and delivery of components to Beijing
Automotive Powertrain CO., Ltd (BAPC). BAPC manufactures engines and
transmissions, and is a subsidiary of the leading Chinese car
manufacturer BAIC, with 40000 employees.

Opcon's Chinese subsidiary, OTS is part of the Engine Efficiency
business area and has up to now delivered exclusively to clients in
Europe.  With its state of the arts productions facilities and high
quality standards that has recently been TS-certified, OTS is now
entering also the fast-growing Chinese market, with future deliveries
directly to Chinese customers. The Letter of Intent with BAPC is a first
example of this strategic move.

“The Chinese car and truck market is growing fast, with China having
already overtaken the U.S. as the world's largest market. It is
estimated that already this year 17 million cars will be sold in China. 
This is just the beginning of our strategy within Engine Efficiency to
take our technology and our focus on energy efficiency to the local
Chinese market", says Tom Gustavsson, Business Area Manager for Engine
Efficiency.

“The first step deals with the product and we have now agreed on the
details.  We will also begin the work on the transfer of technology from
Sweden immediately and the setting up of a production line for mass
production.  We also hope that the LOI will eventually lead to expanding
this cooperation to more products”, says Tom Gustavsson, Business Area
Manager for Engine Efficiency.

Opcon's Engine Efficiency Business Area works mainly with energy
efficient solenoid technology and ignition systems for combustion
engines including ethanol, natural gas and bio gas engines for
sophisticated customers like Scania, Cummins, Saab, Husqvarna,
Kongsberg, Haldex, etc. 

For further information, please contact
Niklas Johansson, Vice President, Investor Relations, tel. +46-70-592 54
53

Opcon AB, Box 15085, 104 65 Stockholm
Tel. 08-466 45 00, fax 08-716 76 61
e-mail:  info@opcon.se (info@opcon.se)
www.opcon.se (http://www.opcon.se/)