29/09/2003

• 21st Century technology could transform performance of UK’s bus fleet
• Innovative product brings fuel consumption and environmental benefits

Stagecoach Group is launching a commercial evaluation of a new fuel additive that could transform the environmental and operational performance of buses across the UK.

The Group has signed an agreement with Cerulean International Ltd, the Oxford-based subsidiary of the nanomaterials company Oxonica Ltd, to trial the next generation product in up to 1,000 vehicles across the country.

Initial trials of the innovative nanocatalyst technology in Hong Kong delivered a 10% fuel consumption reduction. There was also a significant cut in carbon deposits in the engine and lower vehicle emissions.

Stagecoach has started a six-month trial of the product and plans to adopt the next generation technology across its 7,000-vehicle UK bus fleet if the commercial evaluation is successful.

Brian Souter, Stagecoach Group Chief Executive, said: “We believe this new product has huge potential and we are delighted to once again be leading the way in the UK bus industry in developing new ideas.

“Stagecoach is committed to playing its part in building a sustainable environment and improving the environmental management of its operations. This is yet another example of our drive to develop transport solutions that will improve the quality of life in our towns and cities.”

Stuart Anderson, Business Director of Cerulean, said: “We are very excited about the potential benefits of this product and, following extensive successful field trials overseas, we are delighted that Stagecoach have decided to evaluate this product in the UK. We look forward to delivering the same fuel savings and associated environmental benefits here in our home market.”

Nanotechnology research is a key technology of the 21st century and is used to design and build materials the size of an atom. Scientists work in nanometres, each of which is 1/80000th of the diameter of a human hair.

The fuel additive, known as Envirox, is based on a well-known oxidation catalyst widely used in catalytic converters. The material has been re-engineered to allow it to be used as a fuel-borne catalyst, leading to a cleaner burn within the combustion chamber, resulting in improved fuel efficiency and lower emissions. No engine modifications are required to use the product, it has no impact on lubricant performance and the optimum dose rates are low.

Stagecoach has invested £120 million in the last three years in new state-of-the art bus fleets with reduced emissions. All new Stagecoach vehicles meet tough Euro III emissions standards and all buses have changed to use low sulphur fuel.

Trolley buses and electric buses have also been trialled in the company’s New Zealand business as part of efforts to cut the impact of operations on the local environment.

ENDS

For further information, please contact:

Steve Stewart, Stagecoach Group, tel: + 44 (0) 1738 4421111, + 44 (0) 7764 774680
or e-mail: steven.stewart@stagecoachgroup.com

Nigel Robson, Vortex PR, tel: +44 (0) 1481 233080
or e-mail: Nigel@vortexpr.com

Notes to Editors:

• Stagecoach Group is a leading international transport operator, with bus and rail operations in the UK, the United States and New Zealand.
• More than two million people a day travel on Stagecoach bus services in the UK, which cover around 100 towns and cities from the Highlands of Scotland to the south west of England.
• Cerulean International Ltd is a wholly owned subsidiary of Oxonica Ltd, a high-technology company working in the field of applied nanotechnology - science on the atomic scale.
• Oxonica was created in 1999, to commercialise intellectual property developed over seven years at the University of Oxford by Professor Peter Dobson and Dr Gareth Wakefield. Oxonica has gone on to add further intellectual property to its portfolio, and currently has 22 filed patents.
• Lord Sainsbury recently announced the DTI’s injection of £90m of funding into nanotechnology.