FEV, Inc. Announces Major Investment for Facility Expansions and Addition of New Test Facility

- Office expanding to accommodate additional staff at Auburn Hills facility

- Capacity for eight additional test sites to be added in Auburn Hills

- Expansions, improvements scheduled to come on line in Spring, 2009

AUBURN HILLS, Mich., July 21 -- FEV, Inc. (FEV), a leading developer of advanced powertrain and vehicle technologies, announced a major capital investment into the expansion of its facilities in Auburn Hills, Michigan. The facility projects are expected to be completed in the first quarter of 2009. The announcement was made by Gary Rogers, president and CEO of FEV, Inc.

"The industry is retooling for an economy driven by the prospect of limited petroleum- based fuel sources and emerging alternative fuels, both of which will come at higher prices. Our customers are using every means possible to develop and market the products that are being demanded by their customers, and FEV is a significant resource in those efforts," said Rogers. "The demand for innovation is as urgent as it has ever been, and to accommodate that, FEV has embarked upon this major expansion program that will meet our customers' needs now and far into the future."

Auburn Hills Office and Vehicle Lab Expansion

Due to unprecedented growth, FEV is expanding office space by approximately 150 seats, or 10,000 sq. ft., at its Luella Lane facility to accommodate its rapidly increasing headcount. The Luella Lane facility was originally completed in 2007. The new high-tech jobs that are being created include highly skilled positions that will contribute to FEV's core competencies in gasoline, diesel and hybrid powertrain design and development; calibration, vehicle integration, NVH, transmission testing, and emissions control. FEV has hired over 70 new employees to fill high-tech jobs in the past year.

In addition to staff space in Auburn Hills, FEV is also doubling the size of its vehicle integration lab to 50,000 sq. ft., which is housed in the same facility. Used primarily for vehicle instrumentation, calibration and integration, the lab is designed to accommodate standard-sized vehicles as well as mid-sized trucks and delivery vehicles. Allegra Development will oversee and perform the facility expansion project.

Test Cell Expansion in Auburn Hills

FEV's Glenmeade Lane facility, FEV's first location in Auburn Hills, will also undergo an approximate 10,000 sq. ft. expansion that will initially provide eight additional powertrain test sites with sufficient space to add capacity at a future date. Several of the new cells will accommodate larger engines, including engines up to 2.5 MW, providing urgently needed additional resources for FEV's customers. DeMaria Building Company has been awarded the design/build contract to perform this construction project.

"We have a very good working relationship with the City of Auburn Hills," said Robert Last, vice president of operations and communications. "The city has a pro-business attitude, and has greatly assisted FEV to fast-track its projects. This combination of a positive business growth environment with Southeast Michigan offering a central location with regard to our customer base is why we have chosen to stay here and expand here."

This is the second significant expansion for FEV in as many years, noted Last.

"Our business hasn't grown as a result of our sitting back on our heels, but by approaching business development the right way," said Last. "We are not only responding to customer demand for different types of services, but we have done a good job of diversification and predicting the future needs of our customers. These strategies have allowed us to remain somewhat insulated during economic downturns such as what we are currently experiencing." Over the past year, FEV has grown over 25%.

Last also remarked that, "Our growth here, at least for the moment, is limited only by our ability to attract and retain highly qualified engineers and technicians to work in emerging fields such as direct injection engines, electric hybrids, diesel engine development projects and vehicle calibration, homologation and testing. The challenge for us, and for Michigan, is developing and retaining this talent base and stopping the 'brain drain' problem."

About FEV, Inc.

The FEV Group is an internationally recognized powertrain and vehicle engineering company that supplies the global transportation industry. FEV offers a complete range of engineering services, providing support across the globe to customers in the design, analysis, prototyping, powertrain and transmission development, as well as vehicle integration, calibration and homologation for advanced internal combustion gasoline-, diesel-, and alternative-fueled powertrains. FEV also designs, develops and prototypes advanced vehicle / powertrain electronic control systems and hybrid-electric engine concepts that address future emission and fuel economy standards. The FEV Test Systems division is a global supplier of advanced test cell, instrumentation and test equipment. The FEV Group employs a staff of over 1,700 highly skilled specialists at advanced technical centers on three continents. FEV, Inc. employs approximately 350 personnel at FEV's North American Technical Center in Auburn Hills, MI.