CALGARY, Feb. 6 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS (2004)" or the "Company") (TSX Venture: AFX) announced today an update on sales to its largest customer, an OEM manufacturer of CNG taxis and other vehicles for the European market. As previously announced, this customer had slowed production for the Christmas holidays, and to allow time to resolve certain production issues unrelated to AFS supplied parts. AFS has recently been informed by its European based distributor, who handles sales to this customer, that resumption of CNG vehicle production is now scheduled to occur in April 2007. As a result, the Company will continue to build inventory of natural gas pressure regulators in anticipation of shipments again taking place. However, without significant sales to this customer in the first quarter of 2007, revenue for the quarter will be impacted. AFS President and CEO Jim Perry stated, "We realize that our first quarter results will be affected by this slowdown. It is likely that we will not be profitable for the period. However, we have substantial cash resources in place, which will allow us to continue with regular operations, including our ongoing efforts to obtain contracts for vehicle electronic systems in both North America and Southeast Asia. We look forward to resuming pressure regulator shipments in the second quarter, and to continuing to provide our products to this high profile customer."
AFS (2004) is a Canadian company providing innovative and cost-effective solutions to the growing global problem of harmful exhaust emissions from internal combustion engines. AFS (2004) 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.
Forward-looking statements - this news release may contain forward-looking statements about AFS' business, marketing and product development plans based on the current expectations of management.
AFS (2004) cautions investors that any forward-looking statements are subject to various risks, uncertainties and other factors that could cause the Company's actual results to differ materially from those expressed in, or implied by forward looking statements. These risks, uncertainties and other factors include, without limitation, uncertainty related to the Company's ability to successfully implement its business strategy; the risk that product development projects may not be completed successfully or in a timely manner; the ability of the Company to successfully negotiate and execute definitive agreements with its customers; the development of competing technologies and the possibility of increased competition; fluctuating energy prices; availability of key components; uncertainties involving government policies and government regulations affecting the Company's business.
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