Amerigon Subsidiary BSST to Move to Phase 2 on Project to Convert Waste Auto Engine Heat to Electrical Power

System to Use Amerigon's Advanced, Proprietary Thermoelectric Devices to Create New Source of Renewable Energy, Improve Fuel Economy, Reduce Environmental Pollutants

DEARBORN, Mich., Sept. 6 -- Amerigon Incorporated today announced that the U.S. Department of Energy (DOE) has authorized the Company's wholly-owned subsidiary, BSST LLC, to proceed with the second phase of a $6.3 million project to create an efficient and practical thermoelectric system that will improve fuel economy by converting waste heat in automobile engine exhaust into electrical power. BSST is leading the project team that includes BMW of North America, University of California, Santa Cruz; Purdue University, the DOE's National Renewable Energy Laboratory and the Jet Propulsion Laboratory/California Institute of Technology, among others.

The ultimate goal of the program is to use thermoelectric technology developed by BSST to create an energy recovery system that will reduce fuel consumption and carbon dioxide emissions, using technology that can be engineered into everyday vehicles, said Lon E. Bell, Ph.D., President of BSST. This is yet another attractive application of thermoelectrics, and complements the use of related technology in Amerigon's Climate Control Seat(TM) system that actively heats and cools seats in 18 leading vehicles sold all over the world.

"We believe this program will ultimately demonstrate a very practical and commercial application of our thermoelectric technology that works in everyday vehicles and directly addresses the need to reduce vehicle operating costs by harvesting electrical power from waste heat in a vehicle's exhaust," Bell said. "Another product of this program is to significantly reduce harmful environmental pollutants, such as carbon dioxide gas, a contributor to greenhouse warming. It's an exciting and very far-reaching project and we are lucky to have a tremendous pool of talent from the participating organizations to work with."

The DOE authorization, which includes funding for the second phase, came after the team successfully completed and presented its system design concept and supporting analysis, as well as a development plan that would lead to the project's completion. The BSST-led team was the first team involved in the program to be authorized to advance to Phase 2.

Phase 2, which has an estimated timeline of one year, will focus on developing the major subcomponents of the system and supporting processes, including materials, electronics and manufacturing. The ultimate objective of Phase 2 is to establish the technical and cost viability of the waste heat recovery and power generation system.

"In phase 1 of the program, we analyzed the technical feasibility of the system. Phase 2 is focused on developing the system subcomponents and components to demonstrate engineering feasibility, and to prepare to build a full system prototype in Phase 3," said Amerigon Chairman Oscar (Bud) Marx. "We think, ultimately, the marketplace will be very receptive to a system that improves fuel economy by capturing and harnessing energy that today is literally being thrown away. We are confident there are important commercial and military applications for this work."

The DOE project is part of the federal FreedomCAR (Cooperative Automotive Research) and Fuel Partnership, a collaborative effort between private industry and the government focused on the development of technologies necessary to free the personal transportation system from petroleum dependence and harmful vehicle emissions.

Seventy five percent of the total cost of this program will be paid for with Federal funds, while selected project team members will bear the remaining cost. Up to $4.7 million in Federal funds could be contributed to the project over its four-year life. However, the actual amount contributed may be less, as the funding provisions supporting this program require the Department of Energy to approve and release funds only on a phase-by-phase basis, according to project progress and revisions made in the scope of the project. In addition, funds must be made available through the annual Federal budget process each year before any funding release can be made.

About Amerigon

Amerigon designs, develops and markets its proprietary Climate Control Seat(TM) (CCS(TM)) products for sale to automotive and truck original equipment manufacturers (OEMs). CCS enhances individual driver and passenger comfort in virtually all climatic conditions by providing cooling and heating to seat occupants, as desired, through an active thermoelectric-based temperature management system. Amerigon's subsidiary, BSST, is engaged in developing thermoelectric devices (TED) with more efficiency than currently available devices and has development contracts with several partners to expand the market for TED-based automotive and non-automotive products. Amerigon maintains sales and technical support centers in Los Angeles, Detroit, Japan, Germany and England.