City Engines Announces 30% HCNG Transit Bus Project

RENO, Nev.--June 28, 2006--City Engines Inc., of Reno, Nev., today announced their award of an 18-month low emissions bus program to be jointly funded by the Los Angeles County Metropolitan Transit Authority (LACMTA) and California's South Coast Air Quality Management District (SCAQMD). The LACMTA is the largest single operator of natural gas fueled transit buses in the United States.

The program will include the re-powering and evaluation of four transit buses, two running on Compressed Natural Gas (CNG) and two running on 30% by volume hydrogen, balance natural gas (HCNG) fuels. All four engines will employ the very low emissions lean burn HCNG and CNG technologies developed and patented by Collier Technologies Inc. over the past 13 years. City Engines is the exclusive licensee of those Collier technologies.

The new 30% HCNG 11-liter City Engine to be employed is based on a proven Doosan Infracore (Korea) short block engine design, with newly redesigned Collier/City Engines cylinder heads. The new engine configuration was demonstrated on a dynamometer in 2005, and proved its ability to more than meet the upcoming 2007 California CARB/EPA heavy-duty emissions standard. The direct drive engine produced NOx emissions of 0.1 g/hp-hr across the engine's entire operating range. The upcoming 2007 Standard calls for 0.2 g/hp-hr of NOx. The emissions results were obtained at the exhaust, without the use or need of a three-way exhaust catalyst.

Part of the project will be certification of the engines to both existing and upcoming CARB/EPA emissions standards.

Subcontractors to City Engines will be Trillium USA, LLC, who will provide the HCNG fueling infrastructure for the demonstration; and Valley Power Systems Inc., who will provide installation and testing support, as well as future regional distribution services.