August 16, 2001

AFS Achieves ULEV Emission Levels in the U.S.

AFS Achieves ULEV Emission Levels in the U.S.

PR Newswire
August 16, 2001 8:30am

CALGARY, Aug. 16 /PRNewswire/ - Alternative Fuel Systems Inc. (AFS) (TSE:ATF) today announced that its Sparrow Natural Gas Engine Management System has met Ultra Low Emissions Vehicle (ULEV) standards in independent testing in the U.S. The Sparrow System was installed on an AFT 466NG engine as part of a development project between AFS and Alternative Fuel Technology, Inc. (AFT) a Texas based engine design firm. Following receipt of Environmental Protection Agency (EPA) certification, AFT plans to aggressively market the Sparrow-equipped AFT 466NG engine to beverage delivery and school bus fleets in several major U.S. cities.

This achievement significantly broadens our North American market, said Walter Brooks, AFS Chairman and Interim CEO. The AFT 466NG engine is a redesign based on the Navistar DT 466 diesel engine which is a popular engine platform widely used in truck and bus fleets. More than one million units are currently in service in North America. The Sparrow System enables gasoline or diesel engines to operate using 100% natural gas while retaining excellent performance. In March of this year, AFS announced the agreement to create a specialized version of the Sparrow for application on the AFT 466NG.

Southwest Research Institute, an independent U.S. EPA-certified testing facility, performed the emission tests on the Sparrow-equipped AFT engine using EPA-mandated emission test standards for bus and medium-duty truck engine platforms. With testing successfully completed and the application process underway, AFS expects to receive formal EPA ULEV certification for Sparrow-equipped AFT 466NG engines in fall 2001.

With new EPA standards being phased in over the next few years, emissions are becoming a major issue with fleet owners in the U.S., says Brooks. By purchasing ULEV engines, fleet owners can expect to meet federal clean air standards until at least 2008. The low ULEV NO(x) emissions achieved by the Sparrow System for the AFT 466NG engine platform will enable fleet owners to extend the lives of existing vehicles within a fleet by lowering the NO(x) average for the fleet.

There are also considerable financial incentives available from all levels of government for the conversion of fleets to low emission vehicles. By achieving the more stringent ULEV certification, adds Brooks, Sparrow-equipped vehicles will be eligible for more government incentives than LEV vehicles.

Alternative Fuel Systems Inc. is an environmental technology company providing innovative solutions to the global engine exhaust emissions problem. AFS has developed and commercialized electronic engine management technologies that enable diesel and gasoline engines to operate efficiently using natural gas. AFS is also at the forefront of research into exhaust aftertreatment technologies and hydrogen-based engine systems. AFS is headquartered in Calgary, Canada and trades on the TSE as ATF.

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this news release.

Visit our website at: www.afsglobal.com

SOURCE Alternative Fuel Systems Inc.

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/CONTACT: Walter Brooks, Chairman of the Board and

Interim CEO, Phone: (403) 262-1833, Fax: (403) 237-7441, Email: investor@afsglobal.com;
To request a free copy of this organization\'s annual report, please go to www.newswire.ca and click on reports@cnw./

(ATF.)

CO: Alternative Fuel Systems Inc.
ST: Alberta
IN: OIL ENV
SU:

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