Hexagon Purus signs long-term agreement with a major North American OEM for complete vehicle integration of battery electric heavy-duty vocational vehicles

14 Aug 2023 00:33 CEST

(Oslo, 14 August 2023) Hexagon Purus, a world leading manufacturer of zero
emission mobility and infrastructure solutions, has signed a long-term agreement
with a major North American OEM to provide complete vehicle integration of
battery electric vocational trucks in North America.

The scope of this agreement is for complete vehicle integration of battery
electric vocational trucks with Hexagon Purus' proprietary zero-emission
technology, including battery systems, auxiliary modules, power modules and
vehicle-level software. These vocational trucks will be compliant with, amongst
other, the Advanced Clean Truck regulation in California, which requires all
truck manufacturers and distributors to have an incrementally higher zero-
emission vehicle content when selling in California from 2024 and onwards. The
contract will run from 2024 and has an estimated potential sales value of
approximately USD 150 million.

Driving Energy Transformation

"We are excited to strengthen our relationship with this globally leading OEM by
leveraging our common experiences with developing zero-emission heavy-duty
trucks. Our unique vehicle integration capabilities coupled with our proprietary
product portfolio of key components and technologies required for
electrification of heavy-duty trucking, make us an attractive partner for OEMs
looking to go zero-emission", says Morten Holum, CEO of Hexagon Purus.

"As a supplier of critical technology needed for zero-emission mobility, this
agreement further strengthens our position as a strategic partner for OEM
customers", says Todd Sloan, EVP of Hexagon Purus. "We are proud to continue our
long-standing relationship with this OEM, and we look forward to supporting them
in this vocational vehicle program and in driving their transition to zero-
emissions mobility".

For more information:

Mathias Meidell, Investor Relations Director, Hexagon Purus
Telephone: +47 909 82 242 | mathias.meidell@hexagonpurus.com
(mailto:mathias.meidell@hexagongroup.com)

About the market

To reach the 1.5°C ambition set by the Paris agreement back in 2015 the
transportation sector is required to reduce emissions by 75% until 2050. In the
U.S., both the Environmental Protection Act (EPA) and California Air Resources
Board (CARB) have introduced proposals and regulations that addresses the need
for further reductions in emissions in the transportation sector. In California,
CARB has introduced a regulation for truck manufacturers (Advanced Clean Truck
standard), and more recently, proposed a new regulation for fleet owners
(Advanced Clean Fleet standard). Both regulations aim at reducing emissions and
accelerate the adoption of zero-emissions vehicles (ZEVs) in the transportation
sector in California. As part of both the Advanced Clean Truck (ACT) and the
proposed Advanced Clean Fleet (ACF) regulations, the truck manufactures and
fleet owners are required to have an incrementally higher ZEV content when
selling or operating a fleet of trucks in California from 2024 onwards. The ACT
regulation has already been adopted by five other states in the U.S.
(Massachusetts, New Jersey, New York, Oregon, and Washington) and two more
states are in the public process required to adopt (Colorado and Main).

The ACT requires amongst other that 5% of all new class 7 and 8 trucks sold in
2024 in California must be ZEV while new additions to fleets of class 7 and 8
trucks operating to and from intermodal seaports and railyards are required to
be ZEV from 2024. The ACT regulation also requires 100% of truck manufacturers'
sales in 2040 to come from ZEVs, putting an effective end to sale of internal
combustion engine trucks in California and incentivizes investments into
infrastructure and supply chain.

There are approximately 1.8 million commercial trucks operating in California
daily across a various set of classes including amongst other 219,000 class 7
and 8 trucks. According to CARB, the combined effect from the ACT and ACF
regulations will lead to approximately 0.5 million ZEVs on the road by 2035 in
California, increasing to 1.6 million in 2050.

About Hexagon Purus

Hexagon Purus enables zero emission mobility for a cleaner energy future. The
company is a world leading provider of hydrogen Type 4 high-pressure cylinders
and systems, battery systems and vehicle integration solutions for fuel cell
electric and battery electric vehicles. Hexagon Purus' products are used in a
variety of applications including light, medium and heavy-duty vehicles, buses,
ground storage, distribution, refueling, maritime, rail and aerospace.

Learn more at www.hexagonpurus.com (http://www.hexagonpurus.com) and follow
@HexagonPurus on Twitter and LinkedIn

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

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