Stewart & Stevenson acquires Automotive Technik

HOUSTON, Texas, 8 April 2005. Stewart & Stevenson Services Inc. announced today that it has acquired the outstanding shares of Automotive Technik Holdings Ltd. (ATL), the United Kingdom-based manufacturer of the Pinzgauer light utility vehicle, for 25 million British pounds sterling (approximately $47.2 million) in cash and deferred consideration.

Apr 8th, 2005

HOUSTON, Texas, 8 April 2005. Stewart & Stevenson Services Inc. announced today that it has acquired the outstanding shares of Automotive Technik Holdings Ltd. (ATL), the United Kingdom-based manufacturer of the Pinzgauer light utility vehicle, for 25 million British pounds sterling (approximately $47.2 million) in cash and deferred consideration.

The Pinzgauer vehicle is generally regarded as the most advanced and mobile light utility vehicle in its class, with an installed base of over 30,000 vehicles. ATL began manufacturing the vehicle in the late 1990s in Guildford, England. In addition to the standard 4 x 4 and a 6 x 6 configuration, ATL recently added a new Pinzgauer X-M (X-treme Mobility) model and an armored 6 x 6 variant. ATL has won major contracts in competitive tenders from the U.K. Ministry of Defence and the New Zealand Ministry of Defence, and is involved in a number of additional programs worldwide.

In addition to the Pinzgauer manufacturing operations, ATL has a division that specializes in development, test, and applications engineering activities and a specialist equipment fabrication and body building operation. Both the engineering and fabrication units currently support the Pinzgauer manufacturing operations as well as external military and civilian customers.

"Stewart & Stevenson is pleased to add Automotive Technik Holdings Ltd. and the Pinzgauer vehicle to our product offering," said Denny Dellinger, president of Stewart & Stevenson's Tactical Vehicle Systems division. "The Pinzgauer is a proven and capable platform in the light tactical vehicle range with an established international market presence. Together with our Family of Medium Tactical Vehicles (FMTV) in the medium to heavy range, the Pinzgauer will broaden and enhance Stewart & Stevenson's portfolio of world-class tactical vehicles that we design and produce for customers around the world."

Automotive Technik's Chief Executive, Alan Stanley, said, "The future direction and success of ATL and the Pinzgauer is commercially best served as part of the Stewart & Stevenson family of companies. The opportunity to integrate ATL within Stewart & Stevenson, one of the world's leading military vehicle manufacturers, and benefit from their operational and financial strength, will provide our company with unique opportunities that will continue to build upon the important progress we have made."

Stewart & Stevenson has designed, manufactured, and supported the Family of Medium Tactical Vehicles for the U.S. Army since 1991. The FMTV, which includes 2.5-ton and 5-ton trucks in more than 15 variants, is produced in Stewart & Stevenson's state-of-the-art facilities located in Sealy, Texas. The company has produced over 26,000 FMTV vehicles, which are in service around the world.

Stewart & Stevenson Services, Inc., founded in 1902, is a billion-dollar company that manufactures, distributes, and provides service for a wide range of industrial products and diesel-powered equipment to key industries worldwide, including power generation, defense, aircraft, marine, petroleum, and transportation. For more information, see www.ssss.com.

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