AFS Trinity Plug-in Drivetrain -250MPG

SEATTLE, WA, September 14, 2006; A new patent application filed today by AFS Trinity Power Corporation could make paying more to own a hybrid car a thing of the past, according to AFS Trinity Power Corporation CEO Edward W. Furia.

Furia said, "Mileage savings obtained from driving conventional hybrids are not large enough to offset their higher purchase prices that are linked to their expensive battery packs. Battery cost becomes even more important for plug-in hybrids. By providing much higher mileage and using low-cost batteries, AFS Trinity expects its Extreme Hybrid™ drive train to make possible the first money-saving hybrid vehicles of any kind. Drivers should expect the Extreme Hybrid™ to pay for itself in five years or less depending on your driving habits and the future price of gasoline."

"Today's patent filing addresses the architecture, power electronics and control strategies of the Extreme Hybrid™ (XH™) drive train. These technologies, which can be likened to the `brain or control tower' of the system, will allow vehicles containing an XH™ drive train to enjoy the economies of scale possible with the use of lower cost lithium-ion "energy" batteries similar to the hundreds of millions of cells found in inexpensive consumer electronics," Furia said.

Donald Bender, AFS Trinity Chief Technology Officer, added, "These lithium-ion `energy batteries' are expected to cost $200 to $300/kWh for this type of cell. They are different from the lithium-ion `power batteries' that are expected to be used by other hybrids and plug-in hybrids and that are now found in some power tools. Such `power batteries' currently cost as much as $750/kWH and are not expected to go below $500/kWh in five years. We also expect that the lower cost lithium-ion batteries that the XH™ will use will out-perform any known nickel-metal hydride (NiMH) batteries as well," Bender said.

Furia continued, "By delivering 250 miles per gallon the way most Americans drive, the Extreme Hybrid™ will save its owners an average of $12,000 in gas and operating costs over five years and $22,000 over ten years. This is based on $2.85 a gallon of gasoline and off-peak electric power priced at 6¢ per kWh. Of course, it will pay for itself even faster as gasoline gets more expensive."

AFS Trinity's Extreme Hybrid™ drive train will be used in plug-in hybrid vehicles that can be recharged at night and then drive up to 40 miles on electric power alone. Unlike some of today's prototype plug-in hybrids and conversions, the Extreme Hybrid™ will be able to drive in all-electric mode at highway speeds. Its all-electric range will cover the commuting needs of most American drivers, resulting in no gasoline use during their daily trips to and from work. Once the all-electric range is exceeded, the Extreme Hybrid™ will operate like today's conventional hybrids by using its gasoline or diesel engine in combination with electric power, thereby extending its range to 500 miles or more.

The Extreme Hybrid™ differs from other plug-in hybrid designs in significant ways, including that it uses ultracapacitors in combination with lithium-ion batteries so that the batteries can be both charged and deep-discharged without overheating or becoming less reliable. Instead of the batteries delivering the short bursts of power needed for acceleration, the ultracapacitors do this work. The ultracaps also capture the regenerative braking energy from stopping and driving down hills. The ultracaps make possible the use of the lower-cost lithium-ion batteries, further described above, that are optimized for energy delivery, not power delivery. Such energy batteries are both lighter and less expensive than the power batteries used in other hybrid and plug-in hybrid electric vehicle designs.

Today's filing is the latest addition to AFS Trinity's extensive intellectual property portfolio, which includes the first XH™ patent application originally provisionally filed in the U.S. in May 2005, and filed again as a non-provisional U.S. and international patent application in May 2006. This patent covered the Fast Energy Storage™ components of the Extreme Hybrid™ drive train and its ability to supply power back to the grid for load following or voltage stability (so-called V2G application). For more about the May '06 XH™ patent filings see http://www.afstrinity.com/cmp-press-rel-5-4-06.html

Furia said the company is in discussions with major auto makers and other entities within and outside the U.S. regarding building the first XH™ prototypes.

In December 2005 AFS Trinity signed a Technology Partnership Agreement regarding plug-in hybrids with UK-based Ricardo, the world's leading automotive engineering firm. See http://www.afstrinity.com/cmp-press-rel.html.

In August 2006 AFS Trinity signed a Memorandum of Understanding with Austin Energy, founding participant in PluginPartners, a consortium of U.S. municipalities and utilities, providing them the first opportunity to test 50 or more AFS Trinity XH™ demonstration vehicles. For more information about this accord, see http://www.afstrinity.com/cmp-press-rel-8-15-06.html.

About AFS Trinity Power Corporation

AFS Trinity Power is a privately-owned Delaware corporation headquartered in Bellevue, WA, that has engaged in the development of Fast Energy Storage™ power systems for vehicular, spacecraft and stationary power systems. The Company has conducted development programs with private and government organizations including DARPA, NASA, the U.S. Navy, U.S. Army, U.S. DOT, California Energy Commission, Oak Ridge National Laboratories, Lawrence Livermore National Labs, Lockheed and Honeywell. American Flywheel Systems, Inc (AFS) received the first patent ever given for a flywheel battery in 1992 and merged with Trinity Flywheel Power to create AFS Trinity Power in 2000. AFS Trinity and Ricardo, Inc. have signed a mutually exclusive Technology Partnership Agreement to develop the Extreme Hybrid™, the technology which is the subject of ongoing U.S. and international patent filings. For more information, see http://www.afstrinity.com.

About Ricardo

With its North American headquarters in Van Buren Twp., Michigan, Ricardo has been a world-leading vehicle system and powertrain technology provider for automotive manufacturers, heavy-duty manufacturers and tier one suppliers since 1915. The company provides expertise ranging from designing and developing engines, transmissions and drivelines, to integrating vehicle systems and creating software solutions, to developing gasoline, diesel, hybrid and fuel cell technology. Ricardo is committed to excellence and industry leadership in people, technology and knowledge. In addition to playing a major role in the development of AFS Trinity's Extreme Hybrid™ drive train, Ricardo intends to assist automotive OEMs who will be able to license the XH™ drive train for use in their own vehicles. A public company based in the U.K., Ricardo plc posted sales of $272 million in fiscal year 2005 and is a part of the FTSE techMark 100 index—a group of innovative technology companies listed on the London Stock Exchange. For more information, see http://www.ricardo.com.

About Austin Energy & Plug-In Partners

Launched by the city of Austin, Texas, and its municipally-owned and operated electric utility, Austin Energy, Plug-in Partners' goal is to demonstrate to automakers that a market exists for plug-in hybrid vehicles by recruiting partners in local governments, national security organizations, utilities and civic and environmental groups. The hope is that with sufficient public interest and demand, carmakers, who have been reluctant to invest in the technology, will respond with viable, affordable products, from cars to delivery vans. Since its launch in January 2006, most of the 50 largest U.S. cities, other municipalities, many States, Councils of Governments (COGs) and over 200 of the nation's electric utilities have become participants in Plug-in Partners. These organizations are expected to issue thousands of purchase orders to lease or buy the first PHEVs for their fleets. The US Conference of Mayors and other national municipal, security, civic and environmental organizations have endorsed the PIP initiative. For more information, see http://www.austinenergy.com and http://www.pluginpartners.com.