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Background Information Munich, June 4, 2015 ehighway: a vision of electrified freight traffic As it will not always possible to transfer more freight traffic to the rail, this traffic will have to be carried by trucks that combine reliable service with minimum environmental impact. The ehighway is twice as efficient as internal combustion engines. The Siemens innovation supplies trucks with power from an overhead contact line. This means that not only is energy consumption cut in half but also local air pollution is reduced. The ehighway is particularly effective from an environmental and economic perspective on heavily used truck routes, e.g. between ports or industrial estates and freight transport centers, or between mines and central transshipment terminals. Siemens is now demonstrating the system in pilot projects in California and Sweden on public roads. Global road freight traffic to increase 200 percent by 2050 International freight transportation is growing continuously. The World Business Council for Sustainable Development (WBCSD) predicts a trebling of global freight transport volumes between the years 2000 and 2050. Despite considerable expansion of rail infrastructure, trains will only be able to handle around a third of this additional freight traffic. The majority will therefore have to be transported by road. Experts expect CO 2 emissions from road freight traffic to more than double by 2050. Scarce resources, rising crude oil prices Heavy dependence on oil and the unpredictable development of diesel prices are already having a serious impact on transport and the economy today. Innovative ideas for passenger transport already exist now the time has come to provide an economic alternative to fossil fuels in road freight transportation too. Siemens AG Communications and Government Affairs Head: Stephan Heimbach Wittelsbacherplatz 2 80333 Munich Germany Page 1/5

Lower CO 2 emissions with electrified road freight traffic Electromobility offers a sustainable solution: The electrification of road freight traffic will enable significant reductions in CO 2 emissions and ensure that energy for transportation will be available also in the future. The key benefit: electricity can be generated in many different ways by conventional power stations and regenerative sources. The principle: hybrid drive and current collector work in harmony The core of the ehighway solution is an intelligent current collector combined with a hybrid drive system. The ehighway trucks are equipped to collect power from overhead cables and produce zero local emissions. On roads without overhead lines, a hybrid engine powers the truck. The intelligent current collectors enable the vehicle to connect and disconnect at speeds of up to 90 km/h. Overhead contact line Power is transmitted directly from the overhead wires into the vehicle, enabling an optimal efficiency level of around 80 percent. Braking and accelerating trucks can exchange energy with one another via the contact line, as can those traveling uphill and downhill. Vehicles are able to feed braking energy back into the grid in the form of electricity. Existing overhead lines, for example in trolleybus systems, prove the safety of the technology for road transportation. Experiences from rail and tram operations confirm its long lifespan and relatively low maintenance and servicing costs. The technology can easily be integrated into existing traffic systems and does not pose an obstacle to other vehicles. Page 2/5

Hybrid drive Hybrid drive enables the truck to remain flexible, for example in overtaking maneuvers and on non-electrified routes. Compared to the combustion engine, the hybrid drive is considerably more efficient, has a longer service life and requires less maintenance. The overhead contact line system is not limited to any specific truck supplier and in general open to all hybrid trucks. Intelligent current collector The intelligent current collector enables the vehicle to connect and disconnect at speeds of up to 90 km/h and compensates for all movements of the truck within the driving lane. No lane guidance system is required giving the truck full flexibility. The technology represents an innovation compared to purely electrically driven trolleybuses, which can only run on a fixed route, and the hybrid trucks used in opencast mines. First step towards commercial use - demonstration projects Siemens demonstrates the ehighway system in California Siemens is carrying out a demonstration project in California with the vehicle manufacturer Volvo Group and local truck retrofitters. This project involves fitting out a two-mile stretch along a road in the city of Carson. This stretch represents the last part of the road from the ports in Los Angeles and Long Beach to the freight stations near the coast, which are served by thousands of trucks every day. Southern California s environmental agency in charge of clean air policy wants to gather information along this section of road to determine whether our ehighway is suitable for long-term commercial use, specifically along part of the nearby Interstate 710. They want freight transport on part of that route to be emission-free in the future. Page 3/5

The background here is the heavy burden caused by local emissions in the form of particulates, carbon dioxide and nitrogen oxide. Siemens builds ehighway in Sweden Also in Sweden, Siemens is installing a catenary system for hybrid trucks. The contract was awarded by the Swedish Transport Administration to the County Council of Gävleborg. The catenary system will electrify a two-kilometer stretch of the E16 highway north of Stockholm in the context of a demonstration project. The test results will be available two years from the start of the demonstration phase and are intended to demonstrate the system's suitability for future commercial use. Sweden has set ambitious climate targets - the aim is to develop a fossil fuel independent transport sector by 2030. The demonstration project will be conducted on the E16 which connects the regions of Dalarna and Gävleborg, industrial regions dominated by steel, pulp and paper, and mining industries, with the port of Gävle. Two vehicles will be used in the demonstration phase. These are electric hybrid trucks manufactured by Scania and adapted, in collaboration with Siemens, to operate under the catenary system. Contact for journalists Silke Reh Tel.: +49 89 636-630368; E-mail: silke.reh@siemens.com Press photos are available at www.siemens.com/press/ehighway Follow us on Twitter: www.twitter.com/siemens_press Page 4/5

Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 165 years. The company is active in more than 200 countries, focusing on the areas of electrification, automation and digitalization. One of the world s largest producers of energy-efficient, resource-saving technologies, Siemens is No. 1 in offshore wind turbine construction, a leading supplier of combined cycle turbines for power generation, a major provider of power transmission solutions and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry. The company is also a leading provider of medical imaging equipment such as computed tomography and magnetic resonance imaging systems and a leader in laboratory diagnostics as well as clinical IT. In fiscal 2014, which ended on September 30, 2014, Siemens generated revenue from continuing operations of 71.9 billion and net income of 5.5 billion. At the end of September 2014, the company had around 343,000 employees worldwide on a continuing basis. Further information is available on the Internet at www.siemens.com. Page 5/5