Activities will be concentrated in the State of Indiana further enabling Indiana's desire to increase its green manufacturing base. In August 2009, Allison was awarded a $62.8 million Department of Energy Grant for Commercial Truck Hybrid Drive Systems.

INDIANAPOLIS, Dec. 7 /PRNewswire/ -- Allison Transmission, Inc., is the world's leading supplier of commercial-duty fully automatic transmissions for both on- and off-highway vehicles, and of hybrid propulsion systems for on-highway transit and coach vehicles. Allison Transmission announced that it has entered into a long-term business agreement with Delphi Automotive Systems, LLC. Under the terms of the agreement, Delphi will supply Allison Transmission with key hybrid drive system components and energy storage systems.

Delphi's expertise in the manufacture and integration of electronic and hybrid system components for the automotive industry will complement existing Allison Transmission product offerings in both the city transit bus and truck markets.

Lawrence E. Dewey, Allison Transmission, Inc., Chairman and CEO said, "The agreement we signed with Delphi Automotive puts us on a path to deliver the best performing and most economically viable truck hybrid drive solution." Dewey added, "The initial focus of our efforts will be directed toward the use of hybrids in the pick up and delivery, shuttle, utility, and refuse applications."

Allison Transmission is already the leading producer of hybrid drive propulsion systems for the city transit bus market with today's EP40 and EP50 products.

Earlier this year, Allison Transmission applied for, and was awarded, a $62.8 million grant under the U.S. Department of Energy (DOE) American Recovery and Reinvestment Act of 2009. This grant will further increase U.S. capacity to manufacture hybrid propulsion systems for the commercial truck market.

About Allison Transmission, Inc.

Allison Transmission, Inc. (Allison) is the premier global provider of commercial duty automatic transmissions and hybrid propulsion systems. Allison products are specified by over 250 of the world's leading vehicle manufacturers and are used in many market sectors including bus, refuse, fire, construction, distribution, military and specialty applications. Founded in 1915, the Allison business is headquartered in Indianapolis, Indiana, U.S.A. and employs approximately 2,900 people. Regional headquarters with dedicated support staff are located in China, The Netherlands, Brazil, India and Japan. With a global presence in 80 countries, Allison has over 1,500 distributor and dealer locations. More information about Allison is available at www.allisontransmission.com.

SOURCE Allison Transmission, Inc.

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