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EV Development Project for China in Final Phase I Testing

7 June 2000

America Electric Automobile's Vehicle to Aid Pollution Reduction

    SAN DIEGO - --American Electric Automobile Company Inc. announced yesterday that the company's hybrid powered automobile designed for the company's joint venture in China is now in final design testing stage. This automobile is targeted for use in a number of China's major cities to assist in reducing pollution from gasoline powered automobiles. The final steps of the First Phase of the development cycle include extensive road testing and final design and engineering adjustments.

    Edward Myers, Ph.D., Chairman of the American Electric Automobile Company stated that, "This vehicle has the potential to satisfy the estimated Chinese requirement for up to 100,000 Electric Vehicles needed to serve the public transportation market in China. The proposed immediate use of the present model will be to replace the gas powered taxi cabs in Beijing. The automobile is designed to have a range of up to 250 miles per use cycle by combining the company's electric drive technology with a gasoline powered on board battery recharging system."

    American Electric Automobile's conversion of an automobile produced, in China, by the Number One Automobile Group to a very low emission vehicle has been divided into a three phase development program. Phase One is the design of the conversion procedure and the production of one prototype and the road testing of that vehicle. This phase of the project is being carried out in the company's San Diego design and engineering center.

    Phase Two will be the construction of two prototypes in China to serve as the final production models. Phase Three will be establishing the production system for production by American Electric Automobile Company (ASIA), the company's joint venture in China.

    Presently, countries such as China have recognized the need for Electric Vehicles. The Chinese government has made it a priority to reduce pollution in Beijing and other smog engulfed cities by replacing gas powered vehicles with low emission and zero emission modes of transportation. China's new five year plan calls for approximately one in every five (20%) vehicles produced in China to be an electric vehicle.

    American Electric Automobile Co. has developed strategies for capitalizing on the development of zero emission and very low emission vehicles in China, South East Asia, and the United States. The company's vehicle development strategy is based on using standard bodies from other automobile companies. The company's designs include the use of fully functioning air conditioning and heating systems combined with use of readily available off-the-shelf electric motors and drive train elements. These are integrated with the company's custom computerized electric drive controllers. Models for the U.S. market are priced in the $17,000 to $22,000 range.