EPA 2010 Emission Update

Fort Mill, SC March, 2009 Marketing

Overview

Common Terms

• SCR = Selective Catalytic Reduction 

A vehicle emissions control technology to reduce diesel engine emissions for passenger cars, light & heavy duty trucks. Reduces NO x dioxide. using a reducing agent by converting NO x into nitrogen, water and tiny amounts of carbon

• DEF = Diesel Exhaust Fluid 

A solution of 32.5% automotive-grade urea and 67.5% purified water used in the SCR process; also referred to as AUS32

• 33% Urea concentration in water • Clear & odorless • Non-toxic and biodegradable • Corrosive to aluminum • Weight = 9.2lbs/gallon • Freezing point = 12° F (will require heated tank and injection lines)

67.5% Water

Department Daimler Trucks 2

Overview

How BlueTec/SCR Works

Exhaust Gas Recirculation at lower levels than EPA 2007 Intake Throttle Valve NOx PM Exhaust Gas from DPF Outlet Containing Nitrogen Oxides (NOx) Doser

= Exhaust

Precisely Controlled Quantities of 32.5% DEF Solution Injected Into the Exhaust Stream P T T T NOx Diesel Oxidation Catalyst (DOC) Diesel Particulate Filter (DPF) DEF Solution “Hydrolyzes” Into Ammonia Gas Which Mixes with the Exhaust Gas Ammonia and Nitrogen Oxides React In the Catalyst to Form Nitrogen and Water SCR Device

2 2 Department Daimler Trucks 4

BlueTec/SCR Messaging

•

BlueTec/SCR is better economics

equivalent 2007 engines BlueTec/SCR is the first emissions change to provide a cost benefit to the customer.

…

with 3 - 9% better fuel economy than •

BlueTec/SCR is convenient…

Fewer active regenerations. DEF supply will not be an issue and will become second nature to driver when operating their vehicles. •

BlueTec/SCR is proven…

and over 10 Million BlueTec test miles run in the United States customers can be confident in BlueTec.

With over 600,000 SCR vehicles in operation in Europe Department Daimler Trucks 5

Department Most Engine and Truck OEMs Are Gearing Up For SCR In 2010 Daimler Trucks 6

Myth

- what the competitor says SCR will look like Department

Myth vs Facts

Fact

– actual SCR design Daimler Trucks 7

MD 1-Box Understep ATS

Pros: • Clear BOC solution • Lightest weight Department SCR DPF Daimler Trucks 8

Department

2

nd

1 box system

(current DC 016-1BT)

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MD Clear B.O.C. DEF Tank

Department 50 gallon fuel tank 6 gallon DEF tank Daimler Trucks 11

DEF Tank Filling and Freezing

• Immersion heater using engine coolant to heat urea in cold ambient conditions • DEF will be allowed to freeze when the vehicle is non operational in temperatures below 12º F • Vehicle is fully operational when DEF is frozen – vehicle operation will heat urea within prescribed time in order to allow SCR system to operate • All DEF is purged from transfer lines when the vehicle is shutdown 19 mm inlet will to preclude improper filling Department Daimler Trucks 12

Gauges/Lights

% Full

75% to 100% 50% to 75% 25 % to 50% 15% to 25%

Indicator Lamp

4 green lights 3 green lights 2 green lights 1 green light

Vehicle Performance/Operation

100%

Full

Department

90% 80% 70% 60% 50% 40%

% DEF in tank

30% 20% 10% 0%

Empty

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Vehicle Performance/Operation

Gauges/Lights

% Full

5% to 15% 0% to 5% 0%

Indicator Lamp

1 yellow light & DEF lamp 1 red light & DEF lamp 1 red light flashing & DEF lamp 0% to 5% tank level: - 25% engine derate, 55 mph speed limit imposed 0% tank level: - Vehicle speed will be limited to 5 mph, provided vehicle is in a safe situation. – DD is Key Off position

100%

Full

Department

90% 80% 70% 60% 50% 40%

% DEF in tank

30% 20% 10% 0%

Empty

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At 86°F DEF will only last 1 month

DEF Fact vs. Fiction

At 86°F DEF has a shelf life of 1 YEAR!

50 45 40 15 10 5 0 35 30 25 20 44 Months 74°F avg. July temp Los Angeles

DEF Shelf Life at Constant Temperature (average temperature during month of July)

41 Months 75°F avg. July temp Chicago 36 months 77°F avg. July temp Atlanta 95°F avg. July temp 7 months Phoenix Daimler Trucks 18

DEF Fact or Fiction?

DEF is corrosive, hazardous, and unsafe to handle

Material Safety Data Sheet (MSDS)

• Hazards Identification “Urea Solution is not Flammable” •First Aid Measures “Wash area thoroughly with soap and water” •Fire Fighting Measures “Urea solution is not flammable” •Transportation Information “Urea solution is not listed by any US or Canadian transportation authority as a hazardous material…” Department Daimler Trucks 19

Urea becomes toxic at 118°F

“Urea does not become toxic at any temperature” “…at 122°F, DEF will still meet ISO specifications of less than 0.2% ammonia for at least 35 days. At that rate with would take more than 2 years to reach the ammonia level of household ammonia which is still not classified as toxic”

James Spooner VP & GM Colonial Chemical Company

Department

DEF Fact or Fiction?

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DEF Fact vs. Fiction

DEF is useless in the cold because it freezes at 12°F

EPA Requires DEF flow within 70 minutes – Detroit Diesel testing has proven DEF flow within EPA requirements Engine coolant is used to thaw DEF in tank. System will function until DEF begins to flow DEF will start to freeze at 12°F

Department Daimler Trucks 21

DEF Fact vs. Fiction

DEF will cost between $17 and $34 per gallon

DEF pricing is dependant on packaging size

Worst Case:

Pass Car Dealership Gallon

$15.50 per Gallon

Most Frequent Scenario:

Fleet Terminal 275 Gallon IBC

$2.61 per Gallon

Department $7.75*2 = $15.50/gallon $719.60/275 = $2.61/gallon Daimler Trucks 22

Diesel Exhaust Fluid

Myth: DEF is difficult to use.

• DEF consumption is expected to be approx. 2% of fuel consumption dependent on vehicle operation. • 50 gallons of fuel = 1 gallon consumption of DEF • Minimum tank size recommendation – 6 gallons for clear BOC Department Daimler Trucks 23

Diesel Exhaust Fluid

Myth: DEF will be difficult to find.

• DEF will be available for customers to purchase • DTNA and Cummins are working with industry partners to ensure DEF is readily available • DTNA and Cummins will be working to ensure availability of DEF through our distributor and dealer network • Many major truck stops will carry DEF through the country • NAPA, AutoZone & Wal-Mart will carry DEF Department Daimler Trucks 24

Infrastructure Update

Infrastructure Taking Shape Rapidly • SCR Stakeholders group continues to move forward with the distribution network to ensure a smooth transition into 2010.

•

Pilot Travel Centers

,

TA Travel Centers of America

, and

Petro Stopping Centers

have already commented to supplying DEF.

• Other partners are expected to make announcements in January Department Daimler Trucks 25

Dealer and Distributor Strategy

• All Dealers and Distributors will handle DEF to support the network • This program will be launched mid year to support customer demo units and pre series volumes • Part number will be generated and a direct ship program will be launched • The market will be competitive as DEF distributors will also offer product direct Department Daimler Trucks 26

FactsAboutSCR.com

What you will find there

• Third Party information about SCR Technology • Recent 2010 Emission Press Releases • Diesel Exhaust Fluid developments

Industry Website

Department Daimler Trucks 27