CALGARY, Jan. 30 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS or the Company") (TSX Venture: AFX) announced today that it has been selected to develop and supply compressed natural gas ("CNG") engine control systems for two additional vehicle models being launched by TATA Motors, India's largest manufacturer of motor vehicles. These two projects are in addition to the TATA CNG "ACE" project announced late in 2007.
AFS President and CEO Jim Perry said that "We are pleased that TATA Motors has selected AFS to provide engine control electronics for these two new platforms. Our partner in India, Advantek Fuel Systems Pvt. Ltd. ("Advantek") will be supplying other fuel system components, as well as coordinating delivery of the controllers. The CNG version of the Xenon pickup truck is planned to be launched in the first half of 2008. This 4 cylinder vehicle will require a significantly more sophisticated engine controller than is required for the 2 cylinder ACE project. The Xenon has many more features and options, and as a result, the controller will feature a more powerful central processor and considerably more capability. This engine controller will also form the basis for the second new project, the Winger delivery van. The Winger is scheduled to begin production later in 2008."
Mr. Perry added that "Sales volumes of these two engine controllers will depend on the success of the CNG variants of the Xenon and the Winger in the market. We look forward to working with TATA Motors and Advantek on these two high potential opportunities."
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 diesel and gasoline engines to operate on cleaner burning natural gas and other alternative 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 the business of AFS and marketing and product development plans based on the current expectations of management.
AFS 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; uncertainties involving government policies and government regulations affecting the Company's business.
Visit our website at: www.afsglobal.com
%SEDAR: 00020995E