President and CEO’s contract extended

Scania’s Board of Directors has extended the President and CEO Leif Östling’s employment contract for a period of three years, until 31 March 2009.

The fixed annual salary will be SEK 7,500,000 plus an annual extra pension provision of SEK 4,410,000, applicable from 1 January 2006 and for the entire extension period. The new employment contract prescribes that the agreed salary and incentive benefits, with the exception of the extra pension provision, will apply even if the employment should cease due to termination by the company. The previous condition that the employment would end automatically twelve months after Volkswagen AG reduced its holding in Scania AB below 5 percent is no longer applicable. Other terms and conditions have been left unchanged in the new contract. The Board of Directors believe that the extension of President and CEO Leif Östling’s employment contract will secure stability and continuity for Scania, to the benefit of all shareholders. For further information, please contact Cecilia Edström, Senior Vice President Corporate Relations, tel +46 8 553 835 57.