Solaris Bus & Coach S.A. - Summary of the first half of 2006

In the first six months of this year Solaris Bus & Coach sold a total of 205 vehicles. Export sales accounted for just over a half of this number. The map of overseas operators

who chose Solaris products now includes two more export markets, i.e. Denmark and Norway. After the first half of the year Solaris maintains the leader‘s status on the low-floor city bus market in Poland. The second half of the year promises to be even more interesting. During the IAA Commercial Vehicle Show at Hanover in September Solaris Bus & Coach S.A. will unveil new premiere products including a hybrid-powered bus.

In the period from January to June a total of 99 Solaris vehicles were delivered to Polish customers. Traditionally, the biggest product group were Solaris Urbino low-floor city buses, totalling 82 units. The second most significant product group were Solaris Trollino trolley buses, with as many as eight such vehicles purchased by PKT Gdynia city transport operator. Tour and coach operators took delivery of further 7 Solaris Vacanza touring coaches. In the first half of the year Solaris also sold one highly specialized vehicle, a mobile blood collection unit based on a Solaris Vacanza 13 coach, supplied to the Regional Blood Donation and Treatment Centre in Warsaw.

It is worth noting that among the 82 Solaris Urbino buses supplied, as many as 14 are powered by compressed natural gas (CNG). These vehicles have been supplied to operators in the Polish cities of Rzeszów, Radom and Zamość. Large popularity of this type of vehicles in south eastern Poland to a certain extent should be attributed to the convenient location of the deposits of natural gas used to power CNG buses.

With a total of 82 low-floor city buses sold, Solaris Bus & Coach yet again emerged as the leader in this market segment. The table below shows the current situation in the low floor (LF) and low entry (LE) segments in Poland after the first six months of the year.

“On the whole, the first six months of this year have been positive for our company. To put this year‘s figures in a context, let me just say that in the first six months of 2005 we sold 29 units in Poland, and closed the year with a total of 123 buses sold. This year, after the first six months, we have already delivered a total of 99 buses, and we yet to find out the outcome of a few large tenders, including a public tender to supply a batch of 100 buses to the city of Warsaw. All going well, this may turn out to be a very good year on the Polish market,” commented Krzysztof Olszewski, Solaris Bus & Coach S.A. chairman and chief executive.

On the export markets the company sold a total of 106 vehicles. Traditionally, the highest number of units were exported to Germany where a total of 51 buses were delivered in the first six months. Germany was followed by Slovakia with 20 units, Czech Republic (13), France (8), Switzerland (7), Sweden (4), Estonia (2) and Italy (1).

It is also worth noting that in the first six months of the year Solaris Bus & Coach agreements to supply buses for the first time to operators in Denmark and Norway.

The Danish customer is the Sporveje operator based in Aarhus, the city with the second highest population in Denmark. Four Solaris Urbino 18 articulated buses will be delivered to the customer in October 2006. The new customer in Norway is Oslo-based Norgesbus who will take delivery of the first units from the total batch of nine by the end of July.

“The situation on the export markets reflects a degree of uncertainty on the part of our customers who are awaiting the introduction of the Euro 4 emission standard due to come into force from October 2006. The majority of our customers prefer to wait with orders until the second half of the year which will certainly bring a significant upturn on the market. Obviously we stick by our plans of reaching sales in excess of 700 units,” declares Krzysztof Olszewski, Solaris Bus & Coach S.A. chairman and chief executive.

Traditionally, for Solaris Bus & Coach the beginning of the autumn season means participation in a number of shows and exhibitions. This year will be no different, with Solaris being present at the IAA Commercial Vehicle Show in Hanover on 20-28 September, and, on the home ground, at the Transexpo show in Kielce on 4-6 October.

During the IAA Show Solaris plans to unveil the company‘s latest product, a hybrid-powered bus (more detailed information on the product is included in a separate press release attached).

“We do hope that this new bus will be our company‘s next sales hit, both in Poland and on export markets,” concludes Krzysztof Olszewski.