Friday, November 27th 1998

Koldo Saratxaga, Managing Director of IRIZAR S. COOP and Gunnar Rustad, Director of Scania Deutschland GmbH, sign today, 7th July 1998, in the German town of Koblenza, an agreement: IRIZAR, S.COOP grants SCANIA DEUTSCHLAND GmbH the sole right to sell Irizar's products.

The International Fair of Hannover (IAA'98) that will be opened in September 1998 will mean the beginning of the sale of luxury Scania 'Century' Coaches in Germany.

SCANIA is the fourth coach manufacturer in the ranking in the world with 4.584 coaches sold in 1997 all over the world. As well as in Sweden, it has factories in Denmark, France, Poland and Brazil

IRIZAR will manufacture in 1998 about 850-900 coaches in the factory of Ormaiztegui and about 450-500 coaches in Irizar's factories in China, Morocco and Brazil. The latter started manufacturing in July.

IRIZAR and SCANIA have been working closely together for five years with very satisfactory results and the products developed between Irizar and Scania are actually sold in the United Kingdom, France, Netherlands, Belgium, Poland, Sweden, Norway, Turkey, U.A.E. and Hong Kong.

'To IRIZAR, SCANIA Deutschland is a strong collaborator in Germany, the biggest European market of luxury coaches and we see a good chance we hope to have a successful partnership colaboration' said Koldo Saratxaga. 'The Scania 'Century' coach is a modern product that fulfils the highest requirements and this with the individual and close relation with the customer take us to offer a very interesting alternative in the market' said Gunnar Rustand.