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Honda Purchases Interest in FuelMaker, Manufacturer of Natural Gas Refueling Systems

24 October 2000

Honda Purchases Interest in FuelMaker, Manufacturer of Natural Gas Refueling Systems

    TORRANCE, Calif., Oct. 24 American Honda Motor Co., Inc.,
which markets the Civic GX natural gas vehicle, has purchased a 20 percent
interest in FuelMaker Corporation, a privately held Toronto-based company and
the leading manufacturer of natural gas vehicle refueling appliances, the
companies announced today.
    In addition, Honda R&D Americas, Inc., will provide market research
information to assist FuelMaker's efforts in developing an inexpensive,
advanced technology, home refueling appliance for natural gas vehicles.  This
new product will allow natural gas powered vehicles to be conveniently
refueled from a homeowner's natural gas line, in addition to refueling at
public stations.
    "Natural gas offers many advantages and opportunities as an alternative to
gasoline," said Tom Elliott, American Honda executive vice president.
"Substantial supplies of natural gas exist in North America and there are
significant environmental benefits.  The biggest challenge the industry faces
is developing an infrastructure that provides customers with improved access."
    Currently, natural gas powered vehicles are primarily purchased by
corporate and government fleets that buy alternative fuel vehicles to meet
Energy Policy Act goals.  These organizations typically maintain their own
refueling facilities.
    Honda has been selling the natural gas powered Civic GX since 1997.  The
EPA has referred to the GX as being the "cleanest internal combustion engine
vehicle in the world."  The Civic GX also has earned a Super Ultra Low
Emission Vehicle (SULEV) rating and produces almost zero emissions.  The new
2001 Civic GX offers increased range, fuel economy and greater interior and
trunk space.  It is equipped with a continuously variable transmission (CVT)
for responsive performance and fuel efficiency.
    "Advanced technology vehicles like the CNG Civic GX face the 'chicken and
egg' infrastructure challenge," Elliott said.  "Without more vehicles on the
road, the infrastructure won't grow.  But without an expanded infrastructure,
vehicle demand remains limited.
    "Our research and marketing experience with the Civic GX indicates
consumers like the idea of being able to refuel their vehicle at home,"
Elliott said.  "As natural gas lines already supply most homes and businesses,
the availability of an affordable home refueling system will expand the
potential for alternative fuel vehicles."
    Recognized as a leader in environmental technology, Honda has been at the
forefront of enhancing fuel economy, lowering emissions and developing
alternative fuel vehicles.  Honda was the first automaker to sell
gasoline-powered vehicles meeting California's stringent emission standards
for Low Emission Vehicles (LEV) in 1995, Ultra Low Emission Vehicles (ULEV) in
1997, and Super ULEVs (SULEV) in 2000.  The Honda Insight was also the first
gasoline-electric hybrid available in America when it went on sale in
December, 1999.  About 88 percent of all 2001 Honda vehicles are LEV rated or
better.

    American Honda, the U.S. sales and marketing subsidiary of Honda Motor
Co., Ltd., was founded in 1959.  Honda currently produces automobiles,
motorcycles, all-terrain vehicles, lawn mowers and engines at its U.S.
manufacturing operations using domestic and globally-sourced parts.  Honda
also maintains R&D centers in California, Ohio and North Carolina that design
and develop many of the products sold in America.

    FuelMaker Corporation is an environmental technology company providing
infrastructure solutions for both the natural gas and hydrogen/fuel cell
fueling industries.  Development of FuelMaker's core technology, supported by
94 patents, began in 1989.  Since then, FuelMaker has built a base business to
satisfy the gaseous fueling needs of industrial and consumer markets.  The
combination of extensive R&D, a manufacturing and quality focus, and
8,000 FuelMaker Vehicle Refueling Appliances (VRAs) in operation for both
natural gas and hydrogen, has resulted in technology and a product line that
is recognized around the world as extremely reliable and state of the art.  (A
VRA is a self-contained system that compresses natural gas or hydrogen and
delivers it to the vehicle.)
    FuelMaker was voted "Best Natural Gas Vehicle (NGV) Company" in a North
American industry poll two years running (1998 and 1999).  Its 3,600 psi VRA
was also voted "Best New Product" in 1998.