Bob Carrick, Vocational Sales Manager, Natural Gas Greg Treinen, Product Marketing Segment Manager, Alternative Fuels/Medium Duty April 12, 2012 Freightliner Natural Gas Market and Product Update Product Marketing

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Pioneers in Natural Gas Market Freightliner Trucks: THE leader in natural gas deliveries of conventional heavy duty trucks More than 1300 natural gas-powered trucks and tractors since 2008 Only conventional OEM producing natural gas vehicles with full factory installation and warranty First to publicly demonstrate ISX12 G-powered vehicle

Daimler Trucks North America Customer Purchase Process – Natural Gas Research the Business Case FUEL – FUEL – FUEL – FUEL – FUEL – FUEL Will products work? Weight/length differences? Funding availability Financing Warranties Insurance Driver reactions ONCE AGAIN: is Fuel readily available at competitive cost & flow? ~3.711” ~24.736” ~16.646”

Daimler Trucks North America 5 CNGprices.com – prices listed in Gasoline Gallon Equivalent. Add 13% to price to get Diesel Gallon Equivalent pricing NG Fuel Location & Price Resources

Daimler Trucks North America Cascadia 113 Day Cab Natural Gas – Base Spec 6 113” BBC Cummins Westport ISX12 G, 400 hp, 1450 lb ft torque Allison 4000HS 12,000 lb. Front Axle / 12,000 lb. Taperleaf Suspension 40,000 lb. R-series Aluminum Carrier Tandem / 40,000 lb. Airliner 192” Wheelbase 155 Diesel Gallon Equivalent (DGE) CNG Fuel Tanks 40 DGE LH CNG tank 40 DGE RH CNG tank 75 DGE back-of-cab CNG tank package SOP Q2 2013

Daimler Trucks North America Cummins Westport ISX12 G liters, up to 400 hp/ 1450 lb ft torque Cleanest technology available: EPA10 and CARB emission standard compliant Dedicated natural gas engine – NOT dual fuel Spark ignited stoichiometric EGR engine Factory produced – Cummins Jamestown, NY plant Maintenance-free aftertreatment system Three-way passive catalyst No regeneration or ash cleaning Optional engine brake available Target Markets: Q SOP: Regional haul truck / tractor - Cascadia Q SOP: Vocational – 114SD Future (2015): Cummins ISX15 G, 500 hp

Daimler Trucks North America 8 What: Drive Cascadia with ISX12 G from Long Beach, CA to Washington, DC Dealer events Microsite – freightlinergreen.com - with blogs, photos, videos, social media PR When: Begin following ACT Expo, which ends May 17, First stop on May 18. Tour ends at dealer meeting location in Washington around May 24. Where: Four (4) or five (5) stops between Long Beach and Washington: Phoenix OKC Little Rock Nashville Charlotte (?) Why: Promote Cascadia with new 12 liter natural gas engine. Keep FTL in spotlight as natural gas leader. Show natural gas as a fuel, and FTL CNG product, as viable alternative to diesel CNG Cross Country Tour Summary

Daimler Trucks North America 9 What: Cascadia 113 CNG Demo Program Five (5) Cascadia 113 CNG tractors with new ISX12 G engine Purchased from DTNA by Ryder – Ryder keeps trucks at end of demo Ryder responsible for maintenance, permitting, etc. Rental/leasing terms not yet determined When: July through June 2013 Begins following FTL dealer meeting in Washington, DC Where: One vehicle in each sales region (US & CAN), plus potentially one additional focused on LA to Salt Lake corridor (LNG) Why: To seed interest in Freightliner’s all new Cascadia CNG product Give customers hands on experience with natural gas Give dealer network more experience with natural gas product line – very few have it now Demonstrate continued leadership in alternative fuel products – Shaping Future Transportation Proposed Cascadia CNG Demo Program

Daimler Trucks North America Cascadia 113 Day Cab Natural Gas – CNG Fuel Tanks Diesel Gallon Equivalent Rail-Mounted CNG Tanks Contact Agility Fuel Systems for Additional Tank Sizes

Daimler Trucks North America Cascadia 113 Day Cab Natural Gas – CNG Fuel Tanks Diesel Gallon Equivalent Back-of-Cab- Mounted CNG Tank Package This package is flush with top of cab vs. current package (17” above cab); approx 5 additional inches BOC vs. current package) Contact Agility Fuel Systems for Additional Tank Sizes

Daimler Trucks North America Cascadia 113 Day Cab Natural Gas – Dual LNG Fuel Tanks Required Gallon (84 Diesel Gallon Equivalent) Rail-mounted LNG Tanks

Daimler Trucks North America Installed at Anniston, AL or Fontana, CA Tank delete, with price quote process Data Codes DRILLING PREP FOR ALONG SIDE RAIL CNG TANKS FUEL TANK BRACKET , STEPS AND BANDS SHIPPED TO DEALERSHIP SEPARATELY FOR LH AND RH CUSTOMER INSTALLED CNG FUEL SYSTEM BATTERY BOX FRAME MOUNTED 29G-001 PLASTIC AUXILIARY BATTERY BOX MOUNTED BETWEEN RAILS LH BATTERY BOX MOUNTED AS FAR AFT AS POSSIBLE 29E-001 AUXILIARY BATTERY BOX(ES) MOUNTED IN RAIL BACK OF CAB WIRE GROUND RETURN FOR BATTERY CABLES WITH ADDITIONAL FRAME GROUND RETURN NON-POLISHED BATTERY BOX COVER 29F-001 PLASTIC AUXILIARY BATTERY BOX COVER Agility Saddle Tanks 13

Daimler Trucks North America

Expected to be available for install at Agility August 2012 – Contact Agility for details Agility Saddle Tanks – New CNG Tank Design 15

Daimler Trucks North America Cascadia 113 Day Cab Natural Gas – Availability and Ordering Process 16 Availability Start of production now expected Q (April) Launch Group 1 only available with Allison 4000 series transmissions; manuals available Launch Group 2 Factory-installed tank packages to follow – Launch Group 2 Orders Order process - expected Fall 2012 in SpecPro Pricing Not yet determined – final pricing from Cummins not confirmed

Daimler Trucks North America 26K GVW Availability in the M2 112 Natural Gas 17 The ability to spec a 26,000 lb GVW vehicle in an M2 112 with an ISL G will soon be available! Will be published in SpecPro Look for announcement with full restrictions and other details soon Achieve 26K GVW via frame rails – ISL G ONLY: /32X3-1/2X10-15/16 INCH STEEL FRAME (8.73MMX277.8/0.344X10.94 INCH) 80KSI /32X3-1/2X10-3/16 INCH STEEL FRAME (8.73MMX258.8/0.344X10.19 INCH) 80KSI /32X3-7/16X10-1/16 INCH STEEL FRAME (7.14MMX255.6/0.281X10.06 INCH) 80KSI OR, via 16K rear suspension – ISL G ONLY: 622-1JO Airliner16K rear suspension with 18K components.

Daimler Trucks North America Natural Gas Competitive Landscape Brand Models KW T800 LNG w/Westport GX 15L 450 hp/1750 lb ft KW T440, T470 and W900S LNG/CNG w/ ISL-G 8.9L up to 320 hp/1000 lb ft KW T660, T800, and W900 w/ISX12 G 400 hp/1450 lb ft PBT 367, 386, and 389 LNG w/Westport GX 15L 475HP/1750 lb ft PBT 320, 365, and 382 LNG/CNG w/ISL G PBT 320 and 365 with ISX12 G 400 hp/1450 lb ft WorkStar and DuraStar (late 2012) with Emission Solutions Inc (ESI) Phoenix 7.6L, based on DT-466 platform, up to 300HP/860 lb ft TranStar with ISL G 8.9L up to 320 hp/1000 lb ft – late 2012 ProStar with CleanAirPower modified MaxxForce 13 dual fuel LNG engine; 430 hp/1550 lb ft – 2013 Mack TerraPro Low Entry and Cabover LNG/CNG w/Cummins-Westport ISL G 9-liter engine 320 hp/1000 lb ft Volvo VNM with ISL G 9-liter engine 320 hp/1000 lb ft Volvo VNL with ISX12 G Current Status Engines factory installed, but tanks still installed at tank vendor – factory tank installation discussed for summer 2012, but no confirmation On same timeline as FTL for ISX12 G integration Claim to have “broadest range of NG product” Emission Solutions Inc converts reman DT-466 engines to NG Engines installed at Garland, TX plant, tanks not factory installed Joint program with Clean Energy announced March 2012 Full production for Mack TerraPro NG products Mack plans to integrate ISL G into conventional line up, but timeline not clear Volvo sold 10 CNG VNMs to Giant Eagle in 2011, limited sales beyond that How to Sell Against GX not a true Cummins factory engine and only runs on LNG GX requires active regen & soot cleaning, plus diesel particulate filters and SCR equipment – extra weight and cost! GX not compatible with automatic transmissions Still does NOT install fuel tanks – Agility must install & warrant after the fact Does not install methane detection system on CNG products Issues with fan clutches and/or fans falling in to the radiator ESI and CAP base engines are remanufactured More expensive when considering whole package when considering installation costs, etc. No after sale factory support from NAV No factory warranty from NAV Longer lead time Very few units sold – last into the market; limited experience No engine larger than ISL G available currently – only dual fuel 13L LNG engine in works Mack currently only offers COE/LCF refuse products – if customer doesn’t require front-loader we can cover with M2112 tandem axle. Volvo has limited experience No factory tank install 18

Daimler Trucks North America Dealer/Customer Shop Requirements NFPA 30A requirements Full implementation can cost $50K per bay Differences in CNG (odorized) vs. LNG (non-odorized) repair requirements Local fire marshal has final say Major fuel system repairs - same requirements for both CNG & LNG Must call in certified professional – local utility, Agility RequirementCNGLNG Explosion proof lightingXX Methane detectionX Heater locationX Exhaust fansX 19

Daimler Trucks North America Government Incentives Federal The NATURAL GAS ACT (HR1380) Fuel use – 50 Cent/gal tax credit extension Vehicle purchase - $32K to $64K tax credit Fueling infrastructure – up to $100K tax credit Currently in the HOUSE – stalled for a year SENATE introduced similar bill, S.1863, November 15 Senate voted in favor of the amendment on March 13, however the threshold of 60 "yes" votes for inclusion was not met and therefore, the amendment was rejected Drops fuel use tax credit Provisions for funding – better chance of approval…eventually (after election?) 20

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