DaimlerChrysler's Hybrid Transit Buses, Powered by BAE Systems, Deliver Best Performance.

GOLDEN, Colo. -- The Orion VII diesel-electric hybrid transit buses from DaimlerChrysler Commercial Buses achieved the best fuel economy and lowest non-warranty maintenance costs in a 12-month evaluation of hybrid, compressed natural gas (CNG), and diesel transit buses in New York City. BAE Systems provides the HybriDrive([R]) propulsion system on the Orion VII hybrids, which were evaluated in the study.

According to the study, performed by the National Renewable Energy Laboratory (NREL), the hybrid buses demonstrated an average improvement in fuel economy of 34 percent compared to standard diesel-powered buses. Compared to CNG buses, the hybrids demonstrated fuel economy improvements ranging from 60 percent to 120 percent. The model year 2004 hybrid buses' average total maintenance cost during the study was 5 percent lower than that of the 2004 CNG buses.

"This study validates a primary advantage of our hybrid system: greater fuel efficiency compared to alternative systems," said Hank McGlynn, vice president of Vehicle Systems for BAE Systems in Johnson City, N.Y. "And our series hybrid architecture has fewer moving parts than other systems, contributing to better reliability and lower maintenance costs."

"The fuel efficiency of the Orion VII hybrid buses equates to 20,000 gallons saved per bus during a typical 12-year lifetime," said Patrick Scully, chief commercial officer for DaimlerChrysler Commercial Buses North America. "This is of tremendous environmental and operational benefit to transit agencies, enabling them to reduce operating, fuel, and maintenance costs."

Compared to standard diesel propulsion, buses equipped with the HybriDrive system also greatly reduce emissions: 90 percent less particulate matter, 40 percent less NOx, and 30 percent fewer greenhouses gases. The NREL report also said bus drivers like the increased power output of the hybrid buses, whose electric drive motor offers superior torque to help with acceleration and hill-climbing.

The NREL study examined the operation, maintenance, performance, emissions, cost, and safety of urban transit buses operating in normal revenue service in New York, where usage and duty cycle are extremely demanding. The city operates a fleet of more than 4,000 transit buses including diesel, natural gas, and hybrid electric varieties. By the end of 2006, New York will have more than 450 Orion VII hybrids in its fleet. The report can be viewed at www.nrel.gov/vehiclesandfuels/fleettest/pdfs/40125.pdf.

DaimlerChrysler Commercial Buses and BAE Systems together are the world's leading producer of hybrid buses, with more than 1,470 units in service or on order.

About BAE Systems

BAE Systems is the premier trans-Atlantic defense and aerospace company, delivering a full range of products and services for air, land, and naval forces, as well as advanced electronics, information technology solutions, and customer support services. BAE Systems, with 88,000 employees worldwide, had 2005 sales that exceeded $22 billion, excluding the group's former interest in Airbus.

About DaimlerChrysler Commercial Buses North America

DaimlerChrysler Commercial Buses North America (DCCBNA), based in Greensboro, N.C., combines three trusted commercial bus brands under one corporate structure: Orion transit buses, Setra motorcoaches, and the Dodge Sprinter shuttle bus. Backed by the advanced technological expertise and financial strength of its parent DaimlerChrysler, the global leader in commercial vehicles, the division provides the commercial bus market with a powerful combination of product knowledge, resources, and service/ support systems.

DCCBNA is a frontrunner in environmentally compatible mass transit. It was the first to introduce diesel hybrid-electric technology to North America with its Orion transit bus, which is being produced in ISO-certified facilities in Oriskany, N.Y., and Mississauga, Ontario. For more information, please visit www.dcbusna.com.