...	_...~ffve Technology
  Innovation that Works
          World's First Full Hydraulic Hybrid in a Delivery Truck

a  The U.S. Environmental Protection Agency (EPA) and its industry partners unveiled an innovative new technology
   vehicle - the first-ever delivery van with a full series hydraulic hybrid drivetrain in a UPS vehicle.

a  EPA is leading the development  of hydraulic hybrid  vehicles. This  breakthrough technology can cost-effectively
   reduce emissions and drastically reduce fuel consumption while maintaining or improving performance.
                                          a  This advanced technology UPS demonstration vehicle achieves:
                                             •/ 60-70% better fuel economy in laboratory tests
                                             •/ 40%  or  more  reduction  in  carbon  dioxide,  the  primary
                                                 greenhouse gas
                                             •/ Ability to  recoup additional  cost  for  new  hydraulic hybrid
                                                technology in less than 3 years.

                                          a  In a  full hydraulic  hybrid,  a hydraulic drivetrain  replaces the
   conventional drivetrain and eliminates the need for a conventional transmission. It increases vehicle fuel economy
   in three ways:  it permits the recovery of energy that is otherwise wasted in vehicle braking, it allows the engine to
   be operated at much more efficient modes, and it enables the engine to  be shutoff during many operating
   conditions such as when the vehicle is decelerating and stopped at a light.

a  A delivery vehicle  is an excellent application for hybrid technology since  its service cycles involve  numerous
   braking events. Hydraulic hybrid technology has significant commercial potential for a wide range of medium-sized
   vehicles such as urban delivery trucks, shuttle/transit buses, and waste disposal vehicles.

a  The organizations that contributed to the development of the UPS
   demonstration vehicle are:  EPA,  Eaton  Corporation,   UPS,
   International Truck  and Engine Corporation, U.S. Army - National
   Automotive Center, and  Morgan-Olson. Major technical support
   was provided  by FEV Engine Technology,  Inc.  and Southwest
   Research Institute.

a  Eaton  Corporation  - played a key role with  EPA to develop  the
   innovative  integrated  hydraulic  rear-drive  used  in this  UPS
   package vehicle.
Primary rear drive in EPA's hydraulic
 hybrid UPS demonstration vehicle
a   EPA estimates that the added costs for the hybrid components, produced in high volume, for a package delivery
    vehicle have the potential to be less than $7,000, which would  be recouped in less than three years by the lower
    fuel and brake maintenance costs.  In today's dollars, the net  lifetime savings over this vehicle's typical 20 year
    lifespan are estimated to be more than $50,000. If fuel prices continue to increase at a faster rate than inflation, the
    lifetime savings would be even greater.

a   EPA and UPS plan to evaluate the demonstration vehicle in on-the-road service during 2006.

a   EPA is developing a second UPS demonstration vehicle in a second phase of this partnership in order to explore
    the cost effectiveness  of a different full hydraulic hybrid system configuration under a variety of load  and  driving
    cycle conditions. EPA also plans to install an EPA Clean Diesel Combustion (CDC) engine in the phase 2 vehicle.
    The CDC engine does not need NOx aftertreatment to achieve 2010 NOx standards.
                     June 2006