West Coast Collaborative

Jim Williams Director Sales & Distribution New Products International and Engine, Corp. • Genesis: International Harvester Co. • $12 Billion Revenues • Operating Divisions – International Truck & Engine • 40% Medium Truck Market Share • 32% Severe Service Market Share • 18% Class 8 Market Share – IC Corporation • 65% School Bus Market Share – Workhorse Corporation • Motor Home Chassis • Package Car Chassis Navistar Financial • Wholesale / Retail Finance – Largest producer of diesel engines (150 to 300 HP) in the world – Navistar Truck Electronics • Aware Vehicle Intelligence System – $1.5 Billion Military Business – Manufacture Ford Medium – Purchased GMC Heavy Truck Business – World Wide Distribution Corporate Responsibility

• Reduced Dependence on Fossil Fuels • Reduction in Green House Gases • CO2 Emissions • Use of Alternative Fuels • Green Diesel Hybrid Technology Diesel Emission History & Future

SULFUR ASH/Sulfur Content Content 1994 In Fuel In Oil

5.0 500 PPM Ash 1998 (6/93) 1.5% 4.0 Sulfur ) ) r r .8% h h - - p p h h / / g g 2002/2004 ( ( 2.5

x x Ash O O 2007 1.2 1.0% N N ULSD 15 PPM Sulfur (6/06) .4% 0.2 2010 0.0 0.0 0.01 PM (g/hp-hr) 0.10 Primary Hybrid Components

DC/DC Converter

Power Electronics Carrier (Battery Box)

Motor Inverter/Controller Hybrid Drive Unit (HDU) – Direct Hybrid Engine Starting Mode

Engine AutoClutch Motor AutoShift (AMT) Engine Torque Neutral Gear Position

Engaged Discharging Mode

Battery System – Direct Hybrid Electric Only Mode

Engine (idle) AutoClutch Motor AutoShift (AMT) Motor Torque Drive Torque

Disengaged Discharge where, Drive Torque = Mode Motor Torque (Tm) x Gear Ratio

Battery System – Direct Hybrid Engine & Motor Drive Mode

Engine AutoClutch Motor AutoShift (AMT) Engine Combined Torque Torque Drive Torque

Engaged Discharge where, Drive Torque = Mode Engine Torque (Te) + Motor Torque (Tm) x Gear Ratio

Battery System Direct Hybrid - Engine Only Mode

Engine AutoClutch Generator AutoShift (AMT) Engine Engine Torque Torque Drive Torque

Engaged Charging where, Drive Torque = Mode Optional Engine Torque (Te) x Gear Ratio

Battery System – Direct Hybrid Regen Braking Mode

Engine AutoClutch Generator AutoShift (AMT) Engine Regen Torque Torque Inertial Torque

Engaged or Charging where, Regen Torque = Disengaged Mode Inertial Torque (T) x Gear Ratio

Battery System – Direct Hybrid Engine off ePTO & APG

AutoShift (AMT) Engine AutoClutch Generator (off) (in neutral)

No Drive Torque

Disengaged Discharging Mode

Auxiliary Power Generator (APG) Battery System Inverter & Power Panel (optional on - 5-10kW) Pump Utility Tools (on) (on) – Direct Hybrid Engine on ePTO & APG

AutoShift (AMT) Engine AutoClutch Generator (on) (in neutral)

No Drive Torque

Engaged Charging Mode

Auxiliary Power Generator (APG) Battery System Inverter & Power Panel (charging mode optional) (optional on or off - 5-10kW) Pump Utility Tools (on) (on) – Fuel Saved Emissions Reduced On 2006 Emissions Engines Dollars & Gallons of Utility Truck Fuel Saved Annually Emissions Reduced**

$414 *1 70% 138 Gallons 12,500 Miles 60% Hybrid Car* ~ 600-900 Gallons Saved – 50% 6.6 9.9 Tons of CO2 Reduced 2 20,000 Miles ~ $1,800 to $2,700 * 40% P&D ~ 1,000-1,500 Gallons Saved – 30% 11 16.5 Tons of CO2 Reduced 12,000 3 hrs / day ~ $3,000 to $4,500 *2,3 20% Miles Work-site Ops

~ 1,200-1,900 Gallons Saved 10% – 13.2 21 Tons of CO2 Reduced Utility 9,500 6 hrs / day ~ $3,600 to 0% 2,3 Miles Work-site Ops $5,700 * HC CO NOx

1 Over the Road * Assume 21mpg; 30% improvement Over the road & Worksite Ops *2 $3.00/gallon fuel ** Based on independent 3rd party testing Engine off work-site *3 Assume baseline: 7.5 mpg & 1.18 gph idle – P&D 30-50% fuel economy improvement – Utility 40-60% fuel consumption reduction Component Locations Component Locations - Body Mounting

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” 20 ’ International s Hybrid Programs Dealer Network

An Industry Leader In Support And Service

® Nearly 900 International ’ Dealer locations, you re never away from the service and support whenever you need it. Product Update

• We have spent 3 years working with customers, Calstart and government entities bringing a hybrid solution to market – We have leveraged NAC and DOE funding for technology development – We have invested heavily at International in a production release • We now have new proven hybrid technology in production – 1.3 million miles of validation testing over 2 years of product in customers hands – It is combined with new 2007 Green Diesel Technology – It can use – – In certain applications hybrids can run body equipment on electricity engine off – It uses existing fuels and requires no infrastructure changes to operate – Our dealers are trained to support the new hybrid products – It is the only product that reduces both emissions and CO2 in significant amounts – Customers love the product • We believe this will provide California the largest reduction in emissions and green house gasses for your dollars spent. The Nation’s Most Advanced

• Florida Power & Light (FP&L) fuels this hybrid on B30 (30% biodiesel) resulting in approximately 70% less oil used compared to a conventional truck • + Hybrids = Real Synergy (hybrid technology will maximize use of biofuels) • International Truck and Engine produced 24 of these trucks for 13 utilities across the nation under contract with U.S. Army sponsored CALSTART HTUF program QUESTIONS