* Series production running at record pace of 1.35 million Engine Equivalents per year * New Installation discussions at advanced stage, with one undisclosed installation completed * New US fuel economy legislation can provide opportunities for diesel growth in North America [Stockholm, 8 August 2011] - Series production remains strong and stable, with annualised production running at a record rate of 1.35 million Engine Equivalents (67,500 tonnes/year). The production is well above SinterCast's break even volume and is expected to increase during the second half of the year. SinterCast is currently supporting product development and pre-production programmes for passenger vehicle, commercial vehicle and industrial power applications, including some high volume programmes that have already been approved for series production. These programmes provide continuous growth opportunities. During November 2010, SinterCast indicated that 2011 provided the potential to be the strongest year for new installations in more than a decade. This was reconfirmed at the 19 May 2011 Annual General Meeting as a target for five new installations. Thus far during 2011, SinterCast has announced new installations at the Daedong and Daeshin foundries in Korea. A third installation has recently been completed at an undisclosed international cylinder block and head foundry, although the installation has not yet been announced due to restrictions by the foundry, pending the start of high volume series production. A formal announcement will be made when approved by the foundry and the end-user. The installation outlook remains positive for the second half of the year, with discussions at advanced stages in Asia and the Americas. SinterCast maintains the goal of securing five new installations during 2011. On 29 July, the Obama administration announced new fuel economy standards for cars and light trucks that will require significant improvements in fuel economy and greenhouse gas emissions. Building on stagnant CAFE standards of 27.5 miles per gallon (mpg) since 1975, the Obama administration introduced a new CAFE standard in 2009 requiring 35.5 mpg for new cars and light trucks sold in 2016 and beyond. The new standard requires a further increase to 54.5 mpg for all new cars and trucks sold in the United States in 2025. Administration officials have indicated that the 54.5 mpg standard would reflect combined fuel economy of 62 mpg for cars and 45 mpg for pick-up trucks. Of greatest importance to SinterCast, and a part of SinterCast's message to Washington as a member of the United States Coalition for Advanced Diesel Cars, the new CAFE standard is technology neutral, focusing on the specific fuel economy goal rather than prescribing the technology path. The new CAFE standards provide an improved opportunity for the increased use of fuel efficient diesel engines in North America. "All of SinterCast's key indicators, including field trials, installations and series production show positive development and provide the basis for SinterCast's best ever full year result" said Dr. Steve Dawson, President & CEO of SinterCast. "The successful growth, combined with positive feedback from our customers provides a deep source of motivation for the employees as we enter what promises to be a very busy second-half of 2011." For more information, please contact: Dr. Steve Dawson President & CEO SinterCast AB (publ) Tel: +46 8 660 7750 e-mail: steve.dawson@sintercast.com Website: www.sintercast.com SinterCast is the world's leading supplier of process control technology for the reliable high volume production of Compacted Graphite Iron (CGI). With at least 75% higher tensile strength, 45% higher stiffness and approximately double the fatigue strength of conventional grey cast iron and aluminium, CGI allows engine designers to improve performance, fuel economy and durability while reducing engine weight, noise and emissions. SinterCast produces a variety of CGI components ranging from 2 kg to 17 tonnes, all using the same proven process control technology. The end-users of SinterCast-CGI components include Aston Martin, Audi, Caterpillar, Chrysler, DAF Trucks, Ford, Ford-Otosan, General Electric Transportation Systems, General Motors, Hyundai, Jaguar, Jeep, Kia, Land Rover, MAN, Navistar, Porsche, PSA Peugeot-Citroën, Renault, Rolls-Royce Power Engineering, Scania, Toyota, Volkswagen, Volvo, VM Motori, and Waukesha Engine. The SinterCast share is quoted on the Small Cap segment of the NASDAQ OMX stock exchange (Stockholmsbörsen: SINT). For more information: www.sintercast.com - END - [HUG#1536774]
Series Production Continues at Record Pace, Positive Installation Outlook for 2011
| Source: SinterCast AB