AFS Announces New President And CEO

CALGARY, Jan. 2 - Alternative Fuel Systems Inc. is pleased to announce the appointment of John S. Webb as President and CEO effective today. Mr. Webb's career covers 28 years in Telecommunications and Information technology where he has gained extensive experience in manufacturing, product development, marketing and sales. In the last decade Mr. Webb has held senior management and executive positions in the following Canadian public companies: Nortel Networks Inc. (Assistant Vice President, Marketing), Telus Communications Inc. (Senior Vice President, Marketing and Business Development), Cell-Loc Inc. (President and CEO) and AT&T Canada (Senior Vice President, Western Canada).

Mr. Webb has served as a director for a variety of public and private companies, including being a past Director of ISM-Alberta, a telecommunications partnership between IBM, ISM Canada and Telus and past Chairman of the Board of Cell-Loc Inc., a TSE-listed wireless technology company. Mr. Webb is currently Chairman of Calgary Technologies Inc., an economic development technology incubator in Calgary and incoming Chairman of the Calgary Chamber of Commerce.

``Mr. Webb's extensive experience in the development, commercialization and marketing of a wide range of technological products in both large and small companies makes him an excellent choice to lead AFS'', commented Walter Brooks, AFS Chairman. ``His international sales and marketing experience will be a definite asset as AFS continues to focus on increasing its presence in the global marketplace''.

Mr. Webb commented, ``There is a growing world market for efficient, cleaner burning alternative fuel systems and AFS is well positioned to move forward. I am excited to be joining the company at this time and my immediate focus will be on growing sustainable sources of revenue with current products while targeting leading edge product development for specific emerging markets.''

AFS is a Canadian environmental technology 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. AFS' natural gas systems and components are installed worldwide in new vehicles manufactured by Original Equipment Manufacturers (``OEM''s), or retrofitted in existing fleets. AFS is headquartered in Calgary, Canada and trades on the Toronto Stock Exchange under the trading symbol ATF.