AFV Solutions Evaluating Counterclaim Lawsuit Against CAW

MESA, Ariz.--June 8, 2006--AFV Solutions, Inc. (OTCBB:AFVS), today responded to the frivolous claims without merit made by China Auto Worldwide, Inc. in a June 7th press release.

"I'm evaluating a malicious prosecution counterclaim against CAW and its affiliated entities as well as its officers and directors," stated Jeff Groscost, President of AFV Solutions. "On behalf of the AFV Solutions management and AFV Solutions shareholders it is our duty to vigorously prosecute any frivolous and unfounded representations from CAW."

AFV Solutions received a complaint dated June 2, 2006 alleging six causes of action, all of which AFV has deemed to be baseless and without merit.

"I'm astonished by the malicious and unfounded allegations made by China Auto Worldwide," stated Richard Steele, consultant to AFVS. "I have never met with or been introduced to China Auto Worldwide or Mr. Tim Taylor. Furthermore, I don't believe that CAW even has offices or business in China other than a small operation in Las Vegas, Nevada."

"My attorneys have been instructed to aggressively and promptly respond to this groundless litigation," Steele went on to say.

"We are very disturbed by this complaint, as it is clearly not based on reality. We have vowed to use all available resources to reach a prompt resolution to this matter," stated Jeff Groscost, President of AFVS.

For more information about AFV Solutions, its business developments, and current news, please visit www.afvsolutions.com or call our newly opened Irvine showroom at 949-748-6600.

About AFV Solutions, Inc.

AFV Solutions, Inc. is an alternative fuel vehicle solutions provider dedicated to seeking alternatives to petroleum as a fuel for transportation. It offers options to gasoline users through propane and compressed natural gas (CNG) conversions. Utilizing advanced technologies, AFV Solutions provides immediate results in terms of fuel economy, a cleaner environment and cost savings. AFV Solutions researchers are also exploring ways to obtain a higher ethanol yield than is currently possible, working to create on-board hydrogen generation for vehicle applications, and developing hybrid electric and hybrid diesel bus applications.

Except for historical information, the matters set forth herein, which are forward-looking statements, involve certain risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, actual outcome of the litigation, claims made in the complaint, AFVS's ability to expand in the alternative fuel industry, the competitive environment within the alternative fuel industry, the extent and cost effectiveness with which AFVS is able to compete in the alternative fuel industry, and the market acceptance and successful technical and economic implementation of AFVS's intended plan. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. AFVS undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.