Allison Transmission Prepares to Manufacture New Hybrid Commercial-Duty Truck Drive Systems in Indianapolis, Indiana

Allison Transmission Prepares to Manufacture New Hybrid Commercial-Duty
Truck Drive Systems in Indianapolis, Indiana

The U.S. Department of Energy joins company officials to dedicate a new
Allison Transmission manufacturing plant that will increase the nation’s
capacity to manufacture cost-efficient, fuel-efficient commercial-duty
hybrid truck propulsion systems.

PR Newswire — June 29, 2010

INDIANAPOLIS, June 29 /PRNewswire/ — Allison Transmission, Inc. the premier
global provider of commercial and military-duty automatic transmissions and
hybrid propulsion systems dedicated a new hybrid manufacturing plant in
Indianapolis today. Once fully operational, nearly 100 manufacturing workers
will be capable of producing more than 20,000 commercial-duty hybrid propulsion
systems each year.

This new Allison hybrid propulsion system captures kinetic energy otherwise
wasted as a vehicle decelerates and later reuses the energy to propel or
reaccelerate the vehicle. The recovered energy can also be used to power vehicle
accessories. Fuel economy improvements from other Allison hybrid products are
typically in the range of 20 -30% and greater.

“Allison Transmission and the Department of Energy have worked together for many
years in programs which have pushed transportation technology and resulted in
the production of real products which benefit us all,” Allison Transmission
Chairman and CEO Lawrence E. Dewey told a group of employees, government
officials, state and local representatives and project collaborators gathered at
today’s dedication. “Over $130 million is being invested in the renovation of
this facility and the development of our new commercial hybrid truck product. We
will deliver a new generation of hybrid propulsion solutions to the
transportation industry.”

The dedication of the facility follows an August 2009 visit to Indiana by
President Obama. During his visit, Obama announced that Allison was being
awarded a $62.8 million matching grant by the U.S. Department of Energy (DOE) to
increase the United States’ capacity to manufacture cost efficient,
fuel-efficient commercial-duty hybrid truck propulsion systems.

The DOE grant, which was awarded under the provisions of the American Recovery
and Reinvestment Act of 2009, has enabled Allison Transmission to accelerate its
plans to bring commercial-duty truck hybrid products to market in 2013.

Allison Transmission has been producing hybrid propulsion systems for city
transit buses since 2003. Currently, nearly 3,000 buses using Allison produced
hybrid systems are being operated globally. These buses had accumulated more
than 192 million miles and saved 11.7 million gallons of diesel fuel resulting
in the avoidance of over 116,000 metric tons of CO2 from being dispensed into
the atmosphere.

The new Allison Transmission commercial-duty truck products will benefit from
the company’s expertise in the design, manufacture and customer support of both
its fully automatic transmissions and its established city transit bus hybrid
products.

About Allison Transmission, Inc.

Allison Transmission, Inc. (Allison) is the premier global provider of
commercial duty automatic transmissions and hybrid propulsion systems. Allison
products are specified by over 250 of the world’s leading vehicle manufacturers
and are used in many market sectors including bus, refuse, fire, construction,
distribution, military and specialty applications. Founded in 1915, the Allison
business is headquartered in Indianapolis, Indiana, U.S.A. and employs 2,900
people. Regional headquarters with dedicated support staff are located in China,
The Netherlands, Brazil, India and Japan. With a global presence in 80
countries, Allison has over 1,550distributor and dealer locations. More
information about Allison is available at www.allisontransmission.com.

This material is based upon work supported by the Department of Energy under
Award Number DE-EE0002025. This report was prepared as an account of work
sponsored by an agency of the United States Government. Neither the United
States Government nor any agency thereof, nor any of their employees, makes any
warranty, express or implied, or assumes any legal liability or responsibility
for the accuracy, completeness, or usefulness of any information, apparatus,
product, or process disclosed, or represents that its use would not infringe
privately owned rights. Reference herein to any specific commercial product,
process, or service by trade name, trademark, manufacturer, or otherwise does
not necessarily constitute or imply its endorsement, recommendation, or favoring
by the United States Government or any agency thereof. The views and opinions of
authors expressed herein do not necessarily state or reflect those of the United
States Government or any agency thereof.

SOURCE Allison Transmission, Inc.