Enova and Hyundai Heavy Industries to Create Joint U.S. Research and Development Center

    BUSAN, Korea & TORRANCE, Calif.--Oct. 21, 2002--Enova Systems, Torrance, California (OTCBB: ENVA) announced today that it has agreed in principle with Hyundai Heavy Industries, Co, Ltd. (HHI) to establish a joint venture for an advanced technology center (ATC) for research and development to be domiciled at Enova's Torrance California headquarters.
    The ATC's mission will be to advance current technologies and create new intellectual property and products which may then be manufactured by HHI for world markets in commercial, industrial and residential applications. It is anticipated that the ATC will be initially funded with US$6.0 million from HHI to pursue research and development projects in advanced power management and conversion programs for stationary power applications. Additional programs may also be funded by either partner or through third-party contracts. Enova and HHI desire to commence operations of the ATC in early 2003 assuming that the parties reach a final consensus on all terms and enter into a definitive agreement before year-end.
    The ATC venture builds on more than six years of experience garnered by Enova Systems working in alliance with various Hyundai companies. Starting with Hyundai Motor Company (HMC) and Hyundai Electronics (now Hyundai Autonet), Enova entered into a technology transfer and equity purchase in 1996. Numerous programs, including hybrid-electric, fuel cell hybrid and parallel hybrid drive systems, have been developed through the HMC-Enova alliance. As Enova moved into production systems, it utilized the alliances with HHI and Autonet to manufacture its products for such customers as Ford, Ballard and AVS. Currently, components of the Panther 90, 120 and 240kW drive systems are manufactured by HHI.
    Key-Sik Min, President & CEO of Hyundai Heavy Industries said, "We believe this joint research and development project with Enova Systems will allow our companies to enter into new high technology business areas. We believe this will transform our presence in these markets, which has thus far been relatively small, to that of a global leader in the 21st century." President Min also added that "We believe the partnership between Hyundai Heavy Industries Co. Ltd. and Enova Systems Inc. will create opportunities for us to develop new technologies and products efficiently in the areas of power conversion for mobile and stationery energy systems. The Advanced Technology Center established on the basis of both parties' technologies and mutual faith will be key to opening the door to the future for both our customers and ourselves."
    Carl Dean Perry, president and CEO, stated, "Our strong alliance with the Hyundai companies continues to bear fruit. We believe this new partnering with Hyundai Heavy Industries will further establish Enova as a global player in digital power management. The combined strengths of our two companies should enable us to enhance our ability to bring new leading edge technologies to market faster and more economically than we could individually. Hyundai Heavy Industries recognizes Enova's ability to provide leading edge technologies and products in the areas of power and process control and management in mobile and stationary energy systems. This teaming further underscores both these abilities and the commitment between Enova and Hyundai Heavy Industries for the future."
    Hyundai Heavy Industries, headquartered in Ulsan Korea, is an international integrated heavy industries company operating various businesses including the world's largest Shipbuilding Business; the Engine & Machinery Business (manufactures engines for ships and industrial power generation, machine tools, industrial machinery, robots, and factory automation facilities); the Industrial Plant Business (atomic power facilities, power generation facilities, chemical facilities, etc); the Offshore & Engineering Business (manufactures and installs industrial steel structures, natural gas production facilities, etc); Electro Electric Systems Business (transformers, switchgears, generators and motors, SF6 gas insulated switchgears, circuit breakers, power electronics); Construction Equipment Business; and other business such as steel tower production.
    Enova Systems, with headquarters in Torrance California, and offices in Hawaii and South Korea, is a leading designer, developer, and manufacturer of power management and conversion systems for the global mobile and stationary alternative energy market. The Company's technology and products in power conversion, energy management, and system integration enable Enova Systems to integrate a wide range of power sources, including advanced batteries, fuel cells, and turbine generators, in these power applications. The Company's product lines include the Panther(TM) propulsion systems ranging from 30kW to 240kW, DC-DC supplies for low voltage accessories, and power management systems for batteries, fuel cells, turbines and other components. Enova's propulsion systems and components are used in OEM vehicles from Hyundai Motor Company and Ford. Enova also develops and manufactures propulsion systems for transit buses and airport trams. For more product details and other news see the Enova Web site at www.enovasystems.com.

    This news release contains forward-looking statements relating to Enova Systems and its products. These forward-looking statements are subject to and qualified by certain risks and uncertainties. Such statements do not imply the future success of the Company or its products. These risks and uncertainties are detailed from time to time in Enova Systems' filings with the Securities and Exchange Commission under the name Enova Systems, Inc.