Alternative Fuel Systems Inc. and Isuzu-General MotorsAustralia Limited Complete the First Stage...

CALGARY, Alberta--(BUSINESS WIRE)--Sept. 27, 1999--

Alternative Fuel Systems Inc. (AFS) completes the dual fuel conversion on six of thirteen ISUZU-General Motors (IGM) vehicles, as part of their first major order received from Australia. Warranty coverage provided by IGM on these vehicles

is the first of its kind given by one of the big three automotive corporations for diesel to dual fuel conversions. "The backing by warranty of a major automaker on the AFS equipped engines is a key step towards our strategic goal of becoming the preferred global alternative fuel management system provider to engine manufacturers" commented Gerry Klopp, Chief Scientific and Operating Officer.

As announced in the AFS June 30 press release, the City of Unley selected the AFS proven diesel dual fuel (DDF) system for application with the ISUZU 6SD1-TC engine over all competing technologies. On September 5, 1999 the Mayor of Unley and members of council witnessed the Honorable Robert Hill, Minister of the Environment and Heritage, unveil the 5 state-of the-art side-loading compressed natural gas (CNG) powered waste collection vehicles. Unley Mayor, Michael Keenan says the council is happy with the system. "It's a revolutionary new way of moving heavy vehicles around and we are the trial and we expect to be a success, and from here, right across Australia."

The Unley project was procured by IGM's distributor throughout the greater Adelaide area, North East ISUZU (NEI), a leader in truck sales with forty-five percent of the market share. Through an exclusive agreement with AFS, NEI is the only authorized installer of AFS DDF management systems in Australia. All other IGM distributors operating outside the NEI territory will be supplied with IGM warranty covered NEI trucks equipped with the AFS DDF system.

The sixth system has been ordered by Collex, Australia's second largest waste collection company for use in the Adelaide area. The seventh system has been ordered by GL, Australia's largest NG distributor, for testing in the Sydney area. An eighth unit is to be used for marketing in the Sydney area by another authorized ISUZU distributorship. The five remaining systems are to be assembled and shipped in October for use on the 500 new series ISUZU ( 175 HP ) truck.

The potential original equipment manufacturer (OEM) domestic market in Australia for IGM new trucks of this class is in excess of 2500 units annually.