Scania sells Danish bodybuilding company and concentrates production of bus bodies

12/21/2001 6:15 AM EST

Scania sells Danish bodybuilding company and concentrates production of
bus bodies

As part of the ongoing structuring of its busbuilding activities, Scania
has concluded an agreement-in-principle to sell its bodybuilding
facility in Silkeborg, Denmark to the Norwegian company Vest-Buss AS. As
a result, Scania's development and production of bodies for city buses
will be concentrated at the company's main busbuilding plant in
Katrineholm in Sweden, and at its assembly units in Poland and Russia.

The move is part of the strategy of creating better competitive
conditions for the bodybuilding company, which Scania plans to
establish, based in Katrineholm. The assembly units in Slupsk, Poland
and St. Petersburg, Russia will also form part of the new company.

To the new bodybuilding company, this will mean that the resources for
product and production development of Scania's range of Omni buses -
OmniCity and OmniLink - will be concentrated at the main plant in
Katrineholm. Bodies will be fitted in all three locations.

Vest-Buss is the biggest manufacturer of bus bodies in Norway. Scania
has been collaborating for several years with Vest-Buss in the Nordic
market

Vest-Buss will manufacture its own products for the European market in
Silkeborg, which has a workforce of about 200. Vest-Bus will take over
the Scania personnel presently employed in the plant.

For further information, please contact:
Magnus Hahn, Scania Business Communications +46-70-5517903
Gunnar Boman, Scania Buses & Coaches, Communications +46-70-5508606

Scania is one of the world's leading manufacturers of trucks and buses
for heavy transport applications, and of industrial and marine engines.
With 26,900 employees and production facilities in Europe and Latin
America, Scania is one of the most profitable companies in its sector.
In 2000, turnover totalled SEK 53,800 million and the result after
financial items was SEK 4,500 million. Scania products are marketed in
about 100 countries worldwide and some 95 percent of Scania's vehicles
are sold outside Sweden. Bus manufacture takes place in Sweden, Denmark,
Poland, Russia, Argentina, Brazil and Mexico.

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