AFS (2004) announces closing of equity financings

CALGARY, April 18 /CNW/ - Alternative Fuel Systems (2004) Inc.
("AFS (2004)" or the "Company") (TSX Venture: AFX) announced today that the
Company has closed a series of equity financings through First Associates
Investments Inc. of Calgary which raised gross proceeds for AFS (2004) of
$1.5 million. As noted in the press release of March 1, 2005, the financings
included the issue of 10,000,000 units at a price of $0.15 per unit. Each unit
includes one common share of the Company and one half share purchase warrant.
Each whole share purchase warrant will be exchangeable into an additional
common share at an exercise price of $0.20.
A total of 2,000,000 units (or 20% of the offering) were issued pursuant
to private placements. These subscribers will have a four-month hold period on
their common shares and share purchase warrants and the warrants will be
exercisable for a term of eighteen (18) months. Subscribers to the remaining
8,000,000 units will not be subject to a hold period and the related share
purchase warrants will be exercisable for a term of twelve (12) months.
As a term of the financings, First Associates has an option to acquire up
to 1,500,000 units (or 15% of the units sold) exercisable at a price of
$0.15 per unit for a period of eighteen (18) months.

   The TSX Venture Exchange does not accept responsibility for the
                adequacy or accuracy of this release.