Balqon Corporation Completes Cold Weather Testing on Lithium-Ion Battery Powered Electric Tractor

HARBOR CITY, Calif.--Balqon Corporation (OTCBB: BLQN), an emerging developer and manufacturer of zero emissions heavy-duty electric vehicles for Class 7 and Class 8 applications, today announced successful completion of cold weather testing on its lithium-ion battery powered electric tractor, the Nautilus XE20.

“Supported by AutocarŪ locations coast to coast in US and Canada, we believe that the Nautilus XE20 is truly a commercially viable zero emissions alternative to traditional diesel powered yard tractors currently in use in warehouse distribution centers, marine terminals, intermodal facilities, industrial plants and railyards”

The successful cold weather testing of Balqon’s newest product, the Nautilus XE20, is a continuation of the engineering developments at Balqon. “Our demonstration of the performance of the Nautilus XE20 in actual warehouse applications at temperatures below 10°F under loads exceeding 25 tons validates our belief that the durability, range and performance of our heavy-duty electric vehicles would not be diminished due to the effects of cold weather,” said Mr. Balwinder Samra, Balqon Corporation’s President and Chief Executive Officer. “We believe that the four weeks of successful testing validates the Nautilus XE20 as a viable alternative to diesel fuel powered vehicles in cold weather conditions. Based upon the fuel cost data we recorded, we also believe that Balqon’s heavy-duty electric vehicles will provide significant fuel cost savings as compared to diesel fuel powered heavy-duty vehicles that must remain idle all day in cold weather conditions to prevent fuel line freeze-up,” added Mr. Samra.

The Nautilus XE20, released earlier this month, is designed, integrated, and built in cooperation with AutocarŪ Truck and their XspotterŪ yard tractor team. “Supported by AutocarŪ locations coast to coast in US and Canada, we believe that the Nautilus XE20 is truly a commercially viable zero emissions alternative to traditional diesel powered yard tractors currently in use in warehouse distribution centers, marine terminals, intermodal facilities, industrial plants and railyards,” said Autocar’sŪ Eric Schwartz, Vice President Specialty Vehicle Business of AutocarŪ LLC.

The Nautilus XE20 is designed for off-highway container or semi-trailer “spotting” applications, and is equipped with Balqon’s proprietary heavy-duty drive system and lithium-ion battery management system. The Nautilus XE20 is designed to travel at speeds of up to 25 miles per hour and is capable of towing loads of up to 40 tons. Field demonstrations conducted at both a large beverage distribution warehouse and an industrial manufacturing facility showed lower energy consumption over competitive diesel powered vehicles operated in a similar environment.

About Balqon Corporation

Balqon Corporation is a leading developer of heavy duty electric trucks, tractors and electric drive systems. The Company uses its proprietary flux vector control technology to design propulsion systems for 10 to 50 ton capacity vehicles and material handling equipment. Balqon Corporation’s current product line of tow tractors are designed to transport containers at ports, marine terminals, rail yards, warehouses, intermodal facilities, military bases and mail facilities. For information about Balqon Corporation and its product offerings, visit www.balqon.com. Balqon Corporation’s common stock trades on the OTC Bulletin Board under the symbol “BLQN”.

About Autocar, LLC

Autocar, LLC, headquartered in Hagerstown, Indiana, is an engineering, assembly, sales, and service company, with a focus on severe service heavy duty trucks. AutocarŪ engineers and assembles highly customized vehicles for applications including waste collection and hauling, yard tractor spotting, drayage hauling, mobile cranes, construction, and aircraft services. Additional information on AutocarŪ LLC is available at www.autocartruck.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this press release, including without limitation, Balqon Corporation’s ability to sell electric vehicles, including its Nautilus XE20; the commercial viability of vehicles equipped with lithium-ion batteries, including the Nautilus XE20; the ability of the Nautilus XE20 to be a viable alternative to diesel fuel powered vehicles in cold weather conditions; and the ability of the Nautilus XE20 to consume lower energy otherwise consumed by competitive diesel powered vehicles, are forward-looking statements that involve a number of risks and uncertainties. The actual future results of Balqon Corporation could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues; Balqon Corporation’s ability to secure purchase orders for its products, including the Nautilus XE20, Balqon Corporation’s ability to attract sufficient capital to manufacture its products, including the Nautilus XE20; the ability of Balqon Corporation to attract and retain talented individuals; adverse economic and market conditions; the projected future demand for Balqon Corporation’s products, including the Nautilus XE20; changes in technology and governmental regulations and policies; and other events, factors and risks previously and from time to time disclosed in Balqon Corporation’s filings with the Securities and Exchange Commission, including, specifically, those factors set forth in the “Risk Factors” section of Balqon Corporation’s Amendment No. 1 to its Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission on May 22, 2009 and Balqon Corporation’s Quarterly Reports on Form 10-Q for the periods ended June 30, 2009 and September 30, 2009 filed with the Securities and Exchange Commission on August 14, 2009 and November 16, 2009, respectively.