Quantum Awarded Contract to Develop Diesel Hybrid Electric Vehicles for U.S. Army

IRVINE, Calif., May 21, 2007 -- Quantum Fuel Systems Technologies Worldwide, Inc. today announced that it was awarded a contract to develop a diesel hybrid electric version of its Alternative Mobility Vehicle (AMV) "Aggressor." This program is a follow on to Quantum's successful "Aggressor" vehicle, a high performance light-duty off-road fuel cell hybrid vehicle developed for the U.S. Army's Tank Automotive Research, Development and Engineering Center (TARDEC), National Automotive Center (NAC). The contract has a total value of $4.88 million.

The objective of this program is to develop a second-generation high-performance light-duty off-road hybrid electric vehicle platform based on the results of and feedback from the U.S. Army's testing and evaluation of the Aggressor. The propulsion system for this next phase of AMV development will focus on a JP-8 fuel-compatible diesel internal combustion engine based, battery dominant, series hybrid electric system, which would provide a cost-effective, near-term solution as fuel cell technology matures. Pre-production prototypes will be developed and built for testing and evaluation by selected commands to assess mission suitability, supportability, performance objectives, and guidance on final vehicle configuration.

"We believe that the AMV program offers an innovative solution as a long-range reconnaissance vehicle that fills a technology gap for the U.S. Army in its national defense efforts while reducing its fuel logistic burden," said Alan Niedzwiecki, President and CEO of Quantum. "The vehicle's silent watch capability, high performance acceleration, extended range, and exportable power provide significant advantages for the U.S. Army in communications, surveillance, targeting, and reconnaissance missions. We believe that this vehicle and Quantum's innovative hybrid drivetrain will also be very well-suited for other commercial applications, including homeland security, border patrol, park service operations, and light-duty automobiles."

The contract will be through and administered by Alion Science and Technology Corporation, based in Alexandria, VA. Alion will provide project management oversight in support of this effort for the U.S. Army Tank Automotive Research, Development and Engineering Center.

About Quantum:

Quantum, a fully integrated alternative energy company, is a leader in powertrain engineering, system integration and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications including fuel cells, hybrids, alternative fuels, hydrogen refueling, new body styles, mid-cycle vehicle product enhancements and high performance engines and drive trains for OEMs and consumers of aftermarket parts and accessories. Quantum also designs and manufactures hybrid and fuel cell vehicles. Quantum also develops and manufacturers advanced lithium-ion batteries through its partner, Advanced Lithium Power.

Quantum has product commercialization alliances with General Motors, AM General and Sumitomo. Quantum's customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, SunLine, Yamaha, AeroVironment, and the U.S. Army.

More information can be found about Quantum's products and services at www.qtww.com.

About TARDEC/NAC:

The National Automotive Center (NAC), founded in 1992, is the Department of Defense/ Army focal point for collaborative ground vehicle research and development. The NAC, located at the Tank-automotive and Armaments Command (TACOM), is an integral part of the Army's Tank-Automotive Research, Development and Engineering Center (TARDEC). The NAC serves as a catalyst linking industry, academia and government agencies in the development and exchange of automotive technologies. The NAC leverages government, commercial industry and academia R&D investments, and initiates shared automotive technology programs. Its primary focus is to benefit current and future military ground vehicle systems through: performance improvements, service life extensions, and reduction in ground vehicle design / manufacturing / production / operation / support costs.