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Alternative Fuel Systems Inc. Receives Order From `IDEM' in Iran

9 November 1999

Alternative Fuel Systems Inc. Receives Order From Daimler Chrysler Licensee `IDEM' in Iran

    CALGARY, ALBERTA--Nov. 8, 1999--Alternative Fuel Systems Inc. (VSE:ATF) Monday announced significant progress with the Iranian Diesel Engine Manufacturing Co. (IDEM), following the company's initial news release of June 28, 1999, detailing the signing of a Memorandum of Understanding.
    Today the company announced receipt of an order of over 500 Sparrow compressed natural gas (CNG) fueling systems to be fitted to Mercedes OM 355 engines during engine manufacture in Iran. The order is valued at approximately $900,000.
    IDEM is 30% owned and manufactures under license from Daimler Chrysler. Iran, with the second largest natural gas resources in the world is rapidly implementing the use of natural gas vehicles as a major policy initiative to reduce imports of diesel fuel and to alleviate the serious air quality conditions in its major cities.

For Further Information Contact:

Alternative Fuel Systems Inc. Jo-Anne Cappis Investor Relations Phone: 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 the news release.