To: Mac who wrote (4467 ) 7/24/2000 4:07:41 PM From: Jim Bishop Respond to of 4605 AFS Expands Into Two New Markets In Australia CALGARY, July 24 /CNW/ - Alternative Fuel Systems Inc. (``AFS'') announces that its market base in Australia continues to expand with 10 new orders for AFS' Eagle Dual Fuel Systems in Sydney and Melbourne, the two largest cities in Australia. These orders follow the success of the AFS' refuse fleet program in Adelaide that has been in operation for almost a year. Norgas, AFS' Australia distributor, previously sold Eagle systems within Adelaide and the surrounding municipalities. Both drivers and fleet owners have been very pleased with the power, performance, emissions reductions, and fuel economy provided by the Eagle. The success of the Eagle's fleet program in Adelaide has enabled Norgas to expand AFS' market into the thriving Melbourne and Sydney marketplaces. The bulk of this latest order will be put into use in a municipal fleet of refuse trucks in Melbourne. The Liverpool City Council, in Sydney, and a nationwide bakery chain have purchased the remaining systems. The Eagles will be used on several different models of Isuzu engines in medium-duty trucks. ``Thrilled'' with AFS' introduction into these new markets, AFS President John C. Anderson stated, ``By tackling one of the toughest vehicle applications first - the refuse truck - we were able to dramatically demonstrate to the Australian market the benefits of AFS' outstanding Dual Fuel System. I'm delighted to see this strategy pay off so quickly with new orders rolling in from cities and municipalities from across Australia. Certainly, the growth in the environmental technologies market in Australia is a fine example to the rest of the world on how practical, effective pollution solutions can be utilized.'' The AFS Eagle DDF system is designed to allow diesel engines to operate using natural gas and some diesel while retaining similar performance to a diesel engine. The Eagle DDF system allows customers to benefit from the lower fuel price of natural gas while significantly reducing emissions and avoiding the power loss typically associated with 100% natural gas vehicles. The AFS Eagle is also highly fuel-efficient and operates well under varying load and torque conditions. This helps make it ideally suited for transport fleet applications. Alternative Fuel Systems Inc (``AFS''), based in Calgary, Alberta, Canada, is a world leader in innovative natural gas and emission reduction systems and components. It is publicly traded on the CDNX as ``ATF''. %SEDAR: 00003847E -0- 07/24/2000 For further information: Ms. Paula Kinch, Director, Investor Relations, TEL: (403) 262-1833, FAX: (403) 237-7441, EMAIL: AFS@AFSGlobal.com, WEBSITE: www.AFSGlobal.com; To request a free copy of this organization's annual report please go to www.newswire.ca and click on reports@cnw.