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Volvo's Mack Truck Chooses Enova for Hybrid Refueler Vehicle for U.S. Air Force

TORRANCE, Calif.--Jan. 1, 20046, 2004--Enova Systems (OTCBB:ENVA), Torrance, a developer and manufacturer of electric, hybrid and fuel cell digital power management systems for military and commercial vehicle, transit, marine and stationary applications, announced today that it has received a contract from Mack Truck, Inc., Powertrain Division, a member of The Volvo Group of Sweden, for the development and fabrication of an advanced heavy-duty hybrid drive system, funded by the U.S. Air Force for its diesel-electric hybrid R11 refueler vehicle. The dual-use parallel hybrid drive system for the refueler is being developed in a joint effort between Mack and Enova for a program led by the Southwest Research Institute (SwRI).

Enova will develop and manufacture the motor controller, electric motor and battery management systems for the new parallel hybrid drive system using Mack Trucks' MD11 diesel engine. The new parallel hybrid vehicle program is part of the Air Force's efforts to improve efficiency, reduce fuel and maintenance costs, provide re-generative brake energy and reduce emissions. The refueler fleet consists of approximately 300 vehicles, and upon successful completion and evaluation of the refueler vehicle, there is the potential for additional upgrades to the parallel hybrid drive system. As part of the program, Mack Trucks will also evaluate the applicability of the drive system to commercial vehicles, commencing with its Class 8 Refuse Hauler. Mack Trucks currently produces approximately 3,000 refuse vehicles per annum for major customers such as Waste Management.

Enova's portion of the $1.2 million development program is valued at approximately $250,000, and has the potential for additional system sales for both military and commercial application following the evaluation phase.

"These dual-use, commercial and military, development programs are significant to Enova's growth and development strategy," stated Carl D. Perry, president and CEO. "Enova is proud to be working with its new partners, Volvo, Mack Trucks and SwRI. We believe that this new heavy-duty parallel hybrid drive system for the Air Force will be applicable against a wide range of trucks and buses. Enova is well-suited for the future with both parallel and series hybrid heavy-duty drive systems for the global markets."

"Enova Systems' technology is the ideal match for Mack Trucks' future hybrid drive system strategies," commented Guy Rini, Director Drive Line Products and Technology for Mack Trucks, Inc. "Our relationship with Enova continues to develop in these nascent heavy-duty hybrid sectors, and we believe our partnership will produce many cutting-edge solutions for these markets."

Mack Trucks, Inc. is one of North America's largest producers of heavy-duty trucks, and MACK(R) vehicles are sold and serviced in more than 45 countries worldwide. Mack is a member of the Volvo Group, a publicly held company headquartered in Gothenburg, Sweden. With annual sales of approximately $20 billion, Volvo business areas include heavy trucks, buses, construction equipment, marine and industrial drive systems, aerospace, and financial services. In the United States, Volvo shares are listed on NASDAQ and are traded as ADRs (symbol: "VOLVY").