opoc(TM) Engine Generates Significant Interest

AUBURN HILLS, Mich., May 16, 2005 -- FEV Engine Technology, a recognized world leader in research, design and development of engines and powertrains, is a key player in the development of a new light-weight, high- efficiency diesel concept engine for use in a broad range of military applications.

The 2005 SAE World Congress presented an excellent backdrop for FEV to showcase its innovation and advanced engine and vehicle development capabilities. Of particular interest was a technical paper and hardware exhibit of a new opposed-piston, opposed-cylinder (opoc(TM)) two-stroke diesel-cycle engine being developed under funding by the Defense Advanced Research Projects Agency (DARPA).

The innovative opoc(TM) design eliminates many typical engine components such as the cylinder head, valves, camshafts and all related drive systems. The reduction of components provides increased reliability and reduced maintenance costs.

The original opoc(TM) concept was invented by Prof. Peter Hofbauer, prior to his joining FEV as executive vice president for Research and Development. The intellectual property and trademarks relating to the original opoc(TM) design have since been acquired by Advanced Propulsion Technologies, Inc. (APT), of Goleta, California. FEV is working under contract to APT, DARPA and other interested parties to design and develop for-production variants of the basic opoc(TM) concept. FEV has been selected by APT as their exclusive development partner for the opoc(TM) engine.

"We enjoy a good working relationship with APT," said Gary Rogers, president and chief executive officer of FEV Engine Technology. "FEV provides the engineering design and development services to them that are crucial to take the engine from concept-to-production. We also act as the prime contractor, as in the DARPA program, or as a subcontractor to APT on other programs. We look forward to future cooperation that will benefit both organizations."

FEV is an independent engine and powertrain systems research, design and development company. Globally, it provides complete concept-to-production (C2P)(TM) support to the transportation industry, commercial engine manufacturers and the emerging fuel-cell industry. FEV designs, prototypes and develops advanced gasoline-, diesel- and alternative-fueled engines, as well as advanced vehicle powertrain concepts, including electronic control systems for hybrid-electric vehicles. FEV also is a global supplier of advanced test cell, instrumentation and test equipment.

Additional information is available at http://www.fev.com/ .