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Alternative Fuel Systems Inc. Signs Dual Fuel Project Agreement

28 January 1999

Alternative Fuel Systems Inc. Signs Dual Fuel Project Agreement in Bangkok, Thailand


    CALGARY, Alberta--Jan. 27, 1999--Alternative Fuel Systems Inc. (AFS) and its agent in Asia, Nippon Ecology Work Systems Corp. (ECOS), has signed a Dual Fuel Testing Agreement with the Bangkok Mass Transit Authority of Thailand (BMTA) and the Petroleum Authority of Thailand (PTT).
    The project is funded by PTT and ECOS with technical support provided by AFS.
    In response to serious air quality problems in Bangkok, the Thai Ministry of Industry has assigned PTT the task of expanding utilization of natural gas as an alternative fuel to reduce vehicular emissions. The project is expected to lead to wide-scale conversion of gasoline and diesel engines in Thailand.
    The objectives of the dual fuel testing project in Metropolitan Bangkok are: 
     1) To demonstrate improved emission quality from buses converted
        with the AFS Dual Fuel Multi-Point Injection System (DDF).

     2) To compare engine performance and fuel consumption before and
        after installation of the AFS DDF system.

     3) To provide DDF technology transfer and training to enable PTT
        and its associates to effectively develop programs to expand 
        the NGV Program in Thailand with the AFS DDF system.



    The bus, truck, and car engine types to be tested represent the most common commercial and personal vehicles in use within Bangkok's overall vehicle fleet, namely Hino, Isuzu, Mercedes, Mitsubishi, Toyota, and Honda. They range from older models which will be retrofitted with either the Eagle Diesel Dual Fuel (DDF), or Sparrow Gasoline/CNG Fuel Management Systems, to newer models which will be fitted with a DDF system during the original equipment manufacture (OEM).
    The use of natural gas (NG) in Thailand as opposed to conventional fuels allows for significant fuel cost savings with a quick payback period, and, being an indigenous energy source, offers higher levels of self-reliance within the country, reducing dependence on imported diesel fuel and crude oils. Currently, one CNG fueling station is operating in Bangkok with plans to build 7 more and to further expand gas infrastructure.
    AFS and ECOS have been working together for several years developing new business opportunities in the Asian markets. The combined efforts have resulted in the successful conversion of a new Hino bus to a diesel dual-fuel engine meeting Euro 2 emission regulations. The engine is now a commercially viable product, and business opportunities are currently being negotiated. In addition to the Hino engine, new Isuzu and Mitsubishi 4 and 6 cylinder Japanese truck engines are being jointly developed into diesel dual-fuel engines which will meet low emission vehicle (LEV) status both in Japan and the United States. LEV vehicles can qualify for government subsidies in both countries.
    The innovative Sparrow and Eagle technologies along with the revolutionary reverse flow catalytic converter (RFC) have positioned AFS on the cutting edge of global efforts to reduce engine emissions. AFS is listed on the Vancouver Stock Exchange, trading under symbol ATF.