EANS-News: Major contracts for ElringKlinger subsidiary Hug Engineering AG in the area of exhaust gas purification technology

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Contracts/Major Contracts

Dettingen/Erms (euro adhoc) - Major contracts for ElringKlinger
subsidiary Hug Engineering AG in the area of exhaust gas purification
technology

Elsau (Switzerland), Dettingen/Erms (Germany), July 5, 2012 +++ Hug
Engineering AG, Elsau, Switzerland, has secured two large-scale
contracts for the production of exhaust gas purification systems to
be used in stationary applications as well as marine diesel engines.

The Swiss-based subsidiary of ElringKlinger will supply the
end-to-end exhaust gas purification technology for a stationary
electricity power plant in North America. Fired by gas and light oil,
the plant generates 170 MW of electricity.

Furthermore, Hug will develop and manufacture exhaust aftertreatment
systems for diesel engines used to power a series of six river cruise
ships. The Hug exhaust gas purification systems include a catalytic
diesel particulate trap filter as well as oxidation catalytic
converters for the reduction of hydrocarbon and carbon monoxide
emissions.

The majority of revenue attributable to the two projects will
contribute to sales in fiscal 2013, with the other part being
generated in the current 2012 financial year. The overall volume of
the contracts is in excess of EUR 5 million.

In response to more stringent emission standards worldwide, engines
used in commercial vehicles as well as within the off-road segment
will be equipped to an increasing extent with comprehensive exhaust
aftertreatment technology.

CARB accreditation offers significant potential in the US
Certification of Hug's diesel particulate filter technology by the
California Air Resources Board (CARB) in the first half of 2012
represents an important milestone for the Swiss exhaust treatment
specialist. This has opened up a key segment of the US automotive
aftermarket for buses and trucks with a gross vehicle weight rating
of over 6.34 metric tons. Vehicles of that category, which are
subject to Californian emission standards, have to be retrofitted
with diesel particulate filters. The company has already secured
initial contracts totaling around USD 2 million. Additionally, CARB
accreditation for engines with exhaust gas recirculation is expected
for the second half of the year, which will unlock further sales
potential.

Beyond the retrofit market, Hug Engineering AG, together with
ElringKlinger AG, will also be looking to supply original-equipment
customers in the commercial vehicle as well as the agricultural and
construction machinery industries with components and complete
exhaust gas purification systems.

Headquartered in Elsau, the Swiss Hug Group has been part of the
ElringKlinger Group since May 1, 2011. ElringKlinger AG acquired a
majority interest in the exhaust treatment specialist, thereby
strengthening its strategic position in the field of exhaust
aftertreatment.

Further inquiry note:
ElringKlinger AG
Investor Relations / Corporate Communications
Stephan Haas
Max-Eyth-Straße 2
72581 Dettingen
Fon: +49 (0)7123-724-137
E-Mail:stephan.haas@elringklinger.com

end of announcement euro adhoc
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company: ElringKlinger AG
Max-Eyth-Straße 2
D-72581 Dettingen/Erms
phone: +49(0)7123 724-0
FAX: +49(0)7123-7249000
mail: info@elringklinger.com
WWW: http://www.elringklinger.com
sector: Automotive Equipment
ISIN: DE0007856023
indexes: MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Berlin, München, Düsseldorf, regulated dealing:
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English