Reykjavík-Keflavík airport and Allison Transmission; over 50 years of partnership

GOTHENBURG, Sweden – Isavia, the company that handles the operation and development of Iceland’s airports, has taken delivery of 11 Scania G440 4x4 trucks equipped with the Allison 4000 Series fully automatic transmission. The vehicles feature a 7 meter wide Schmidt snow plow attachment and a sweeping machine, which is towed behind a trailer attached to each truck. The sweeping machine, also 7 meters wide, consists of a sweeping roll powered by a separate engine.

During the winter, a line of these trucks can be found plowing and sweeping the landing strip, while in summer the vehicles are used for sweeping other airfield premises. Seven of the 11 units operate at Keflavik International Airport; the rest are based at other Icelandic airports managed by Isavia. In keeping with the airport’s 50 year old tradition, the vehicles are equipped with Allison fully automatic transmissions.

Taking on a vehicle fleet

Keflavik International Airport was run by the US Navy until 2006, when it was handed over to the Icelandic government and public company, Isavia Ltd, for operations.

"When we took over the responsibility for the airport, we also inherited a large fleet of vehicles; most were equipped with Allison fully automatic transmissions. The oldest is a 1957 Oshkosh snow plow with underbody scraper, equipped with an Allison TG-602 which is still in operation after 55 years of service,” says Mr. Hjörtur Hannesson, Service Manager at Isavia Keflavik. ”We have learned to appreciate fully automatic transmissions, so when we order new vehicles, we obviously equip them with Allison fully automatic transmissions. These 11 new Scania vehicles have been delivered over a three year period, and the order is now complete," continues Mr. Hannesson.

Outstanding reliability and reputation

Since the vehicles are part of Isavia's airport maintenance activity, the company's most important demand is high reliability and quality. "We take good care of our vehicles and maintain them to a level beyond the manufacturer’s recommendation. It has proven to be a profitable strategy. I'm very pleased with the quality and reliability of Allison’s products. Furthermore they are appreciated by the drivers for the good driving comfort they bring and the fact that the drivers do not have to think about gear changes and a clutch pedal," concludes Mr. Hannesson.

Allison's direct dealer in Iceland, Velar EHF Ltd, has a long and close history of cooperation with the Scania dealer, Klettur, which has delivered the multipurpose snow vehicles to Isavia.

"Refuse trucks, fire-fighting and municipal vehicles in this country are often equipped with Allison fully automatic transmissions, and they have a very good reputation,” says Ragnar Karlsson, Managing Director at Velar. "Allison transmissions are recognized for low maintenance costs and offer very reliable operation in all weather and terrain."

About Isavia

Isavia provides services in the air and on the ground. The company handles the operation and development of all airports in Iceland. One of the roles of Isavia is to ensure that flight safety is in accordance with recognized, international safety requirements and methods. Isavia employs approximately 630 people, including subsidiaries, there are approximately 790 employees. www.isavia.is

About Allison Transmission

Allison Transmission is the world’s largest manufacturer of fully-automatic transmissions for medium- and heavy-duty commercial vehicles, medium- and heavy-tactical U.S. military vehicles and hybrid-propulsion systems for transit buses. Allison transmissions are used in a variety of applications including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school and transit), motor homes, off-highway vehicles and equipment (primarily energy and mining) and military vehicles (wheeled and tracked). Founded in 1915, the Allison business is headquartered in Indianapolis, Indiana, U.S.A. and employs approximately 2,800 people.

Allison has manufacturing facilities and customization centers located in China, The Netherlands, Brazil, India and Hungary, with a global presence, serving customers in North America, Europe, Asia, Australia, South America and Africa. Allison also has more than 1,500 independent distributor and dealer locations worldwide. More information about Allison is available at www.allisontransmission.com.

This press release may contain forward-looking statements. All statements other than statements of historical fact contained in this press release are forward-looking statements. In some cases, you can identify forward-looking statements by such terminology as “may,” “will,” “should,” “expect,” “plans,” “project,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “forecast,” “could,” “potential,” “continue,” the negative of these terms or other similar terms or phrases. Forward-looking statements are not guarantees of future performance and involve known and unknown risks. Factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made include, but are not limited to: risks related to our potential indebtedness; our participation in highly competitive markets; general economic and industry conditions; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments and changing customer needs, the failure of markets outside North America to increase adoption of fully automatic transmissions, the discovery of defects in our products resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; the concentration of our net sales in our top five customers and the loss of any one of these; the risks associated with our international operations; the risks related to our brand and its reputation; our intention to pay dividends; and labor strikes, work stoppages or similar labor disputes which could significantly disrupt our operations or those of our principal customers. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All the information is as of the date of this press release, and we undertake no obligation to update any forward-looking statement or conform the statement to actual results or changes in expectations.

Press Contacts

Kenneth Brinkeby Miranda Jansen Superlativ Allison Transmission Europe B.V. 0739-875 867 +31 78-6422 174 info@superlativ.se miranda.jansen@allisontransmission.com

Feb 19, 2013

About Allison Transmission

Allison Transmission (NYSE: ALSN) is the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and is a leader in hybrid-propulsion systems for city buses. Allison transmissions are used in a variety of applications including refuse, construction, fire, distribution, bus, motorhomes, defense and energy. Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA and employs approximately 2,600 people worldwide. With a market presence in more than 80 countries, Allison has regional headquarters in the Netherlands, China and Brazil with manufacturing facilities in the U.S., Hungary and India. Allison also has approximately 1,400 independent distributor and dealer locations worldwide. For more information, visit allisontransmission.com.