08/06/2008

Mack Taps Terra Environmental Technologies as Preferred Diesel Exhaust Fluid Supplier Action A Key Milestone in Establishment of DEF Distribution Infrastructure

LEHIGH VALLEY, PA (August 6, 2008) - Mack Trucks, Inc. named Terra Environmental Technologies Inc. (TET), a Terra Industries Inc. (Terra) company, as its preferred supplier of Diesel Exhaust Fluid ( DEF) for use in Mack's next-generation emissions control technology. DEF is a liquid solution used in Selective Catalytic Reduction (SCR), which Mack will use in combination with exhaust gas recirculation (EGR) to achieve the near-zero levels of nitrogen oxides (NOx) emissions called for in the federal diesel engine regulations taking effect in January 2010. The 2010 regulations, developed by the U.S. Environmental Protection Agency (EPA), require NOx emissions to be reduced more than 80 percent from the standard that took effect in January 2007.

 

"We've never wavered in our conviction that SCR is the best choice for EPA 2010," said Dennis Slagle, Mack president and CEO. "Mack has delivered improved fuel economy with our new MP engine series and SCR gives us the opportunity to improve fuel economy even further. And with SCR, we can truly use the same engines we offer today - the same proven injection system, same camshaft, same cylinder head, same block - without the compromises and larger, more complex cooling systems required by other approaches to EPA 2010.

 

"SCR also allows us to reach the near-zero NOx emissions standards without resorting to the use of credits," he said. "All Mack engines will meet the new standards - period."

 

Mr. Slagle also pointed to the Volvo Group's extensive experience with SCR in Europe.  "The Volvo Group has been in full production of SCR-equipped trucks for more than two years now," he said. "This is a proven, highly successful technology. And as part of the Group, we can capitalize on this experience in developing our own SCR systems optimized for North American customers.

 

"We know that SCR works, and now with TET onboard, we're more certain than ever that DEF will be available when and where our customers need it. Terra is a leading North American producer of this type of material with the demonstrated ability to establish a comprehensive supply chain. The business case for such an infrastructure is certainly there, with about 60% of the heavy-duty truck market, an even higher percentage of the medium-duty truck market, and more and more light trucks and passenger cars utilizing SCR."

 

TET will supply Mack with DEF under the name TerraCair™, a safe, simple, ultrapure solution of water and urea, which can be handled as easily as windshield washer fluid or engine coolant. The agreement between the two companies calls for TET to supply all new Mack trucks with an initial fill of TerraCair at the time of assembly, and, through its distribution partners, provide Mack dealers with the product in portable 1- and 2.5-gallon containers.

 

Michael L. Bennett, Terra's president and CEO, said, "We're delighted that Mack has chosen TET as its preferred supplier. The value we bring to this relationship is our experience with manufacturing and distributing urea solution for NOx reduction in other industries and the dedicated team that we've put together to serve emissions control markets.

 

"TET is establishing similar agreements with other vehicle manufacturers," he said. "We are also deeply involved in developing the other channels of DEF distribution, such as truck stops and fleet fueling facilities, and mini-bulk containers and full tankloads to serve them."

 

"We know just how effective SCR is in reducing NOx emissions," added TET president Barry Lonsdale. "We understand the equipment required to dispense DEF - tanks, supply lines, pumps - and have relationships with the suppliers of that equipment, which are critical in establishing a high-volume distribution system. We're also developing field service and employee training to support this network."

 

Facts about DEF:

 

DEF is a solution of 67.5% purified water and 32.5% urea, an organic nitrogen commonly used in fertilizer, textiles, animal feed and cosmetics. EPA classifies urea as non-hazardous. Urea is naturally occurring, but is also commonly made from natural gas; natural gas is the feedstock for TerraCair DEF. International standards govern DEF quality during production and through distribution.

 

Only a small amount of DEF is required for Mack's SCR system to reduce NOx emissions to the near-zero levels required in 2010. Mack's SCR system will use DEF at a rate of approximately 3 gallons for every 100 gallons of diesel, so a truck's onboard DEF tank will have to be topped off only every few refuelings.

 

Dedicated to quality, reliability, and total customer satisfaction, Mack Trucks, Inc. has provided its customers with innovative transportation solutions for more than a century. Today, Mack is one of North America's largest producers of heavy-duty trucks, and MACK® vehicles are sold and serviced in more than 45 countries worldwide. All Mack manufacturing locations are certified to the internationally recognized ISO 9001 standard for quality and ISO 14001 standard for environmental management systems. Mack is also a proud sponsor of Share the Road, an American Trucking Associations' public information campaign aimed at enhancing the safety of our nation's roadways.

 

Mack is a member of the Volvo Group, one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services, and is the world's leading producer of heavy-diesel engines (9-16 liter). The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 19 countries and sells its products in more than 180 markets. Annual sales of the Volvo Group amount to over $42 billion. The Volvo Group is a publicly held company headquartered in Gothenburg, Sweden. Volvo Shares are listed on OMX Nordic Exchange Stockholm and are traded OTC in the US.