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High Tech ISUZU 6HHI Engine Receives JARI Certification

28 April 1999

High Tech ISUZU 6HHI Engine Equipped With the AFS ``Eagle II'' Receives JARI Certification

    CALGARY, Alberta--April 27, 1999--

    Alternative Fuel System's New Dual Fuel Eagle II Reduces Emissions Significantly Below Japan's Tough Low Emission Vehicle (LEV) Standards

    Japanese Automotive Research Institute (JARI) Certification has been granted to ISUZU for its high-tech, all electronic 6HHI bus/truck engine installed with Alternative Fuel System's (AFS) new Eagle II Dual Fuel management system. JARI Certification is a prerequisite to application for Japanese government subsidies and support toward fast-tracking the technology in the OEM (Original Equipment Manufacturer) marketing arena.
    JARI test results, completed in March and April 1999, confirm the Eagle II achieves remarkable pollution reduction levels, 15-91% below stringent 13 mode LEV levels set in Japan. These results are achieved with fuel efficiency levels equal to, or exceeding, those of base diesel engines.

ISUZU 6HHI/AFS Eagle II
Confirmed Emission Results

(Grams / Kilowatt Hour)

POLLUTANTS        LEV STANDARD      EAGLE II   % REDUCTION
                                     RESULTS     ACHIEVED

         CO           7.4             0.63        91.5 %
(Carbon Monoxide)
         NOX          3.6             2.57        28.6 %
(Oxides of Nitrogen)
         THC          2.9             1.65        43   %
(Total Hydrocarbons)
         PM           0.2             0.17        15   % 
(Particulate Matter)

    AFS announced Feb. 23, 1999, successful completion of the next generation Dual Natural Gas/Diesel System designed for OEM use with new state-of-the-art, all-electronically controlled diesel engines. The new AFS Eagle II (DDF-EGR-RFC) incorporates two important patented technologies, Exhaust Gas Recirculation (EGR) and the Reversing Flow Catalyst (RFC), into the AFS Diesel Dual Fuel (DDF) System to meet tough new EPA, CARB, LEV and Euro III standards.
    Development of the Eagle II was achieved through close cooperation between AFS, ISUZU Motor Co., Engelhard Corp., Johnson Matthey, Matros Technologies Inc., and Zexel Fuel Injection Co. Technology advances follow years of road tests, in which hundreds of thousands of kilometers have been logged by the company's Asian partner ECOS (Nippon Ecology Works System), ISUZU and SENKO.
    Successful integration of AFS systems at the OEM level will provide major global marketing opportunities for the company.
    AFS designs, develops and markets advanced technology fuel management and after exhaust treatment systems that permit diesel and gasoline engines to operate on clean burning, environmentally friendly compressed natural gas. 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 has successfully won contracts in Mexico and China, and is engaged in ongoing negotiations in many regions of the world including India, Japan, Chile, and Europe.
    AFS is listed on the Vancouver Stock Exchange, trading symbol: ATF.

For further information: Alternative Fuel Systems Inc. Jo-Anne Cappis Investor Relations 403/262-1833 Fax: 403/237-7441 E-mail: afsweb@telusplanet.net Web site: www.altfuelsys.com

    The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.