Alternative Fuel Systems Announces New President and CEO

CALGARY, Nov. 4, 2002 - Alternative Fuel Systems Inc. ("AFS" or the "Company")announced today, that effective immediately, AFS Board member Jim F. Perry, will become the Company's new President and CEO. Mr. John S. Webb, AFS' President and CEO since January of this year, has resigned his executive and Board positions to pursue other opportunities.

"John Webb has been a significant asset to the Company during his tenure with AFS", said Allan Amey, the Company's Chairman. "Under his leadership the Company developed much needed stability, a strengthened board of directors, the achievement of record revenues and a significantly reduced cash burn rate. The Board would like to thank Mr. Webb for his contributions and wishes him continued success in the future. As a result of Mr. Webb's efforts, the Company is now well positioned to be taken to the next level".

Mr. Perry has executive and Board experience with several alternative energy and energy service companies in Canada. Most recently, Mr. Perry was President, CEO and Director of Global Thermoelectric ("Global"), a TSE listed, world leader in the development of solid oxide fuel cells. During Mr. Perry's five-year tenure at Global, the company raised $150 million in the equity markets, made significant strides in the commercialization of its fuel cell technologies and formed strategic alliances with well known industry players. Prior to working at Global, Mr. Perry was Executive Director, International Development for Petro-Trade, President of Computalog Ltd. and President of Schlumberger of Canada. He was also previously a Director of Plains Energy Services Ltd. and Enertec Geophysical Services Inc., both formerly TSE listed companies.

"I look forward to being a part of the continued growth of this exciting company", said Mr. Perry. "AFS has the staff and products to tackle a number of worldwide engine emission problems. Increasing attention on environmental issues and the alternative fuel sector should provide an excellent opportunity for this Company going forward".

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 ("OEMs"), or retrofitted in existing fleets. AFS is headquartered in Calgary, Canada and trades on the Toronto Stock Exchange under the trading symbol ATF.