AFS announces option grants

CALGARY, Sept. 29 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS " or the "Company") (TSX Venture: AFX) announces that pursuant to the terms of its stock option plan, it has granted options to purchase 422,000 common shares at a price of $0.25 per share to certain of its directors, officers and employees. The options vest 20% upon the date of grant and 20% every six months thereafter (with full vesting after two years) and are exercisable for a five-year period.

AFS is a Canadian company providing innovative and cost-effective solutions to the growing global problem of harmful exhaust emissions from internal combustion engines. AFS has commercialized electronic engine management systems enabling internal combustion engines to operate on a variety of fuels. The Company is headquartered in Calgary, Canada and trades on the TSX Venture Exchange under the trading symbol AFX.

Neither the TSX Venture Exchange nor any securities regulatory authority has in any way passed upon the merits of the transaction described in this press release and any representation to the contrary is an offence.

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