SOLARIS BUS & COACH - ANOTHER PROSPEROUS YEAR 2003 - A SUMMARY

Solaris Bus & Coach Sp. z o.o., Polish bus & coach manufacturer, closed the last year with a positive outcome. The company had strengthened their leading position at the home market, considerably developing the export sales. As

one of few European bus & coach manufacturers, Solaris makes a remarkable profit. In 2003 the initial capital of the company was raised by 30% of its balance sheet total.

THE LEADER IN POLAND
Solaris Bus & Coach managed to keep their home sales results at the previous year‘s level (107 vehicles sold, including 97 city buses). This means the first position at the Polish city buses segment and the 30% market share in this category. There are not too many orders for city buses in Poland as local authorities count every single penny that can be spent - says Krzysztof Olszewski. Still, we managed to keep the last year‘s sales level and the leading position. Much more difficult is the tourist coaches market - yet next nine more Vacanza 12 coaches were sold. Very significant was the end of 2003, marked with a big contract for the delivery of 50 Urbino 12 buses to Cracow being signed (with the final stage of the assembly taking place at the client‘s workshops).

Solaris Bus & Coach is one of the most rapidly developing manufacturers at the whole bus & coach market. The further export growth is still a top priority to the company, with 400 vehicles to be sold abroad in 2004. Much emphasis is also being given to keeping the leading position at the home market. New investments are crucial for further development of the company. Bigger sales figures require bigger assembly halls - commented Olszewski. This investment is due to start at the second half of the year. Bus the basic condition for making the market success has always been the top quality of the final product. It has been recently confirmed by the ISO 9001: 2000 certificate, awarded by the renowned Lloyd‘s Register Quality Assurance group.

FURTHER GROWTH OF THE EXPORT SALES
As in the previous years, a lot of importance was attached by Solaris to the export development. 2003 brought the 34% growth of the Solaris export sales (in comparison to the previous year). Their share in the whole Solaris sales structure raised up to 61% (as opposed to 52% in 2002). The share of the export income in the company‘s yearly turnover raised from 56% (2002) to 70% (2003). The biggest foreign clients of Solaris are still Germany, Latvia and Czech Republic (with the first ever 15-metre long trolleybus). Worth mentioning are the successes of Solaris at the Western European market, dominated by big, international manufacturers. For instance, Solaris sold the biggest part of their export production to the German market, the 96% of which is still shared by EvoBus and NeoMAN holdings. What is more, Polish manufacturer takes the first position along the remaining 4% (smaller makes present at the German market, not associated with the EvoBus and NeoMAN groups). Among the new buyers of the Solaris vehicles there are also operators from Switzerland, France, Italy and Sweden. Particularly great interest is enjoyed by Solaris Trollino trolleybuses. 30 articulated units (of 18-metre length) are being delivered to Rome. A mega-order for the supply of 100 Trollino 18 to Latvian capital, Riga has been recently taken by Solaris, while 10 rigid Trollino 12 will soon go to Naples (Italy).

The Solaris European sales and service network are subject to further expansion too, with the sales representatives being present in most of the countries. In October an important contract was signed with the renowned Lex & Hesse company of Dresden, concerning the spare parts supplies to Solaris clients in Germany.

THE SUCCESS OF VACANZA
The year 2003 was also marked with more marketing success of the Polish manufacturer. Tourist coach Solaris Vacanza 12, which had its premiere back in 2001, took part in the prestigious "Coach of the Year" contest, ending up at the remarkable, second position. The very fact of the Vacanza being nominated to the contest was a big privilege for us - commented Krzysztof Olszewski, the president of Solaris Bus & Coach. Our efforts towards the top quality, an interesting design and introducing the advanced technology were thus noticed and awarded. The meaning of our success at the "Coach of the Year" contest is crucial for us and we hope that it will result in new orders for Vacanza. The interest in Vacanza grew considerably after the world premiere of its 13-metre long version at the Busworld 2003 show in Kortrijk.