Scania Signs Up With Larsen & Toubro of India

STOCKHOLM, Sweden--Sept. 11, 2006--Scania (STO:SCVA) (STO:SCVB) and Larsen & Toubro Limited (L&T) have reached an understanding to distribute trucks on the Indian market. Scania enters the market by targeting the construction segments, where there is a strongly increasing demand for robust western European heavy trucks with a high technical content.

L&T is the leading supplier of construction equipment in India. Representing Komatsu products among others, the company has a strong sales and service network for construction equipment.

"By adding Scania's multi-wheeler construction trucks to its product portfolio, L&T can offer its mining and construction customers a full range of construction equipment," said Scania's President and CEO Leif Ostling when he and L&T Chairman and Managing Director A.M. Naik met in Mumbai.

"In a longer perspective India will become a significant market also for Scania, in pace with the steadily growing economy, the development of the export industry and continued expansion of the motorway and logistics infrastructures. We are now taking an important step into the market and we look forward to growing and extending our business together with L&T," says Leif Ostling.

Larsen & Toubro Limited is the leading technology-driven engineering and construction organisation, and one of the largest companies in India's private sector. It has additional interests in manufacturing, services and information technology. In the fiscal year 2005/2006, the company's revenue totalled Rs. 151,986 million (EUR 2,6 billion) and net income totalled Rs. 10,121 million (EUR. 170 million). The company was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen and S0ren Kristian Toubro - both of whom were strongly committed to developing India's engineering talent and enabling it to meet the demands of industry.

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company's operations consists of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 30,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production plants are located in Europe and South America, with facilities for the global exchange of both components and finished vehicles. In 2005, revenue totalled SEK 63.3 billion and net income amounted to SEK 4.7 billion.