1. BUSES BUILT WITH CARE Dave Beebe Assistant General Manager IC Corporation

2. BUSES BUILT WITH CARE Section 1 2007 emissions business impact summary.

3. BUSES BUILT WITH CARE What Every School Bus Operator Should Know About 2007 Emissions

4. BUSES BUILT WITH CARE Changes for 2007 The EPA requires 50% reduction in Nitrogen Oxides (NOx) 90% reduction in Particulate Matter (PM) Compliance requires changes in Engine – evolutionary changes in current technologies Aftertreatment – Diesel Particulate Filter (DPF) and Diesel Oxidation Catalyst (DOC) Vehicle – Higher heat rejection means bigger cooling packages Fuel – Ultra Low Sulfur Diesel Oil – Low ash oils to extend DPF service intervals

5. BUSES BUILT WITH CARE What Does This Mean For You? Vehicle Cost Increase $6,000 per school bus Fuel Price of ULSD fuel will increase $.05 - $.10 per gallon New ULSD fuel is backwards compatible Expected to be widely available October 2006 Oil Drain intervals should remain the same with CJ-4 New CJ-4 oil is backwards compatible Expected to be available October 2006 Diesel Particulate Filter (DPF) Will require periodic cleaning (dependent upon annual mileage) Misfuelings with high sulfur fuel will poison the Diesel Particulate Filter and the Diesel Oxidation Catalyst

6. BUSES BUILT WITH CARE Financial Impact Estimated Cost Impact School Bus Price Increase$6,000 DPF Cleaning $90/hour labor $200 every 6–8 years Fuel economy degradation due to active regeneration Varies by operating environment Impact to All Buses (pre- and post-2007) Annual Mileage20,000 Fuel Costs $.07/gal increase $175

7. BUSES BUILT WITH CARE Confidence for the Future Green Diesel ® Technology In production on school buses starting 2001 Foundation of our technology to meet 2007 emissions 2007 Emissions World’s largest mid-range diesel manufacturer Systems approach- not just the engine Support the industry’s need to be environmentally responsive Looking Ahead Continuously evaluating new technology HYBRID: Diesel electric hybrid school bus now in production