Permo-Drive Technologies Ltd. Wins $1.6 Million Army Contract For Testing Hydraulic Hybrid Vehicle Systems

DETROIT, March 17 -- Australian-based Permo-Drive Technologies Ltd. has been awarded a $1.6 million grant from the U.S. Army to perform engineering qualification tests on hybrid hydraulic vehicles.

The grant is the single largest grant awarded so far by the U.S. Army's foreign competitive testing office in its exploration of hybrid technology to power its military vehicles.

The successful development of this technology is made possible by a collaborative effort between the Army's National Automotive Center, Army Program Executive Office Combat Support & Combat Services Support, Permo- Drive, Stewart and Stevenson Services Inc. and Dana Corporation.

"This partnership of a technology provider, a tier one driveline systems integrator and an OEM manufacturer is ideally placed to provide the transition of this technology from concept to production very rapidly. This includes the development of a kit to retrofit existing legacy fleets," said Willem de Vylder, CEO of Permo-Drive.

Three vehicles manufactured by specialty vehicle maker Stewart & Stevenson Services will be evaluated in tests at the Aberdeen, Md., proving ground later this year with two 2.5-ton 4x4s and one 5-ton 6x6. These medium-duty vehicle platforms are designed to meet a wide range of weapons system deployment, troop carrying and cargo-hauling duties.

Permo-Drive has been working with the U.S. military since signing a cooperative research and development agreement with the U.S. Army's Tank- automotive and Armaments Command (TACOM) in Warren, Mich., in 2002. That agreement promoted the development testing of Permo-Drive's hybrid-hydraulic driveline systems for military and commercial applications on both new and existing vehicles.

"Along with our partners at Dana Corp. and Stewart & Stevenson, we are eager to complete the testing that will further demonstrate the benefits of this technology with production representative vehicles," noted Paul Chandler, Permo-Drive's president of North American Operations.

Hybrid-hydraulic systems have the potential to provide significant fuel savings for future generations of military vehicles as well as for a large number of vehicles which are already in operation, Chandler added.

A hybrid-hydraulic system captures energy as a vehicle decelerates, then releases that energy back into the driveline as power is needed. "This technology offers the potential for significant savings to fleet operators as well as a substantial benefit to the environment," said John Thompson, Permo- Drive's chief engineer.

Headquartered in Ballina, New South Wales, Australia, Permo-Drive Technologies Ltd. also has a North American office in Ann Arbor, Mich. More information about the company is available on the Internet at www.permo-drive.com .