Quantum Sells Interest in Tarxien Automotive Products Ltd.

IRVINE, Calif., Oct. 27, 2005 -- Quantum Fuel Systems Technologies Worldwide, Inc., today announced that its subsidiary, Tecstar Automotive Group, has sold the business and substantially all of the assets of Tarxien Automotive Products Ltd. to Concord Coatings, Inc. for a 20% equity interest in Concord Coatings, $0.25 million in cash and a $1.2 million note. In addition, Tecstar Automotive Group will have the right to appoint one director to Concord Coatings' board of directors.

Tarxien provides OEM-quality components and finishes for the automotive aftermarket and second stage manufacturing with its robotic limited-volume production paint facility. Tarxien is located in Vaughn, Ontario, Canada.

"We have completed a transaction by which we retain an ownership position and board representation in our limited-volume production paint facility, while placing the responsibility for profitability and product enhancement on Concord Coatings, industry leaders in operating paint facilities," said Alan P. Niedzwiecki, President and CEO of Quantum. "In the past, we have been willing to incur losses in the paint business in order to support and control our product quality and delivery. This new arrangement allows us to retain business oversight while refocusing our own critical management and quality people on next-generation products and our core businesses. As Quantum moves forward, we will continue to look for opportunities to reduce our costs and improve operating performance."

About Quantum

Quantum and its subsidiary, Tecstar Automotive Group, are leaders in powertrain engineering, system integration, and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications including fuel cells, hybrids, alternative fuels, hydrogen refueling, new body styles, mid-cycle vehicle product enhancements and high performance engines and drive trains for OEMs and consumers of aftermarket parts and accessories. Quantum also designs and manufactures hybrid and fuel cell vehicles.

Quantum has product commercialization alliances with General Motors, AM General, and Sumitomo. Quantum's customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, AeroVironment, and the U.S. Army.

More information can be found about Quantum's products and services at www.qtww.com.