To: Stew who wrote (4554 ) 1/17/2001 10:38:12 AM From: Jim Bishop Read Replies (1) | Respond to of 4605 AFS Seeks Patent on New Multi-Stage Regulator Design CALGARY, Jan. 17 /CNW/ - Alternative Fuel Systems Inc. (CDNX: ATF) ('AFS') announced today that it has applied for patents in several countries for the company's new multi-stage gas pressure regulator. Every vehicle using compressed natural gas or hydrogen requires a pressure regulator to reduce the gas from storage pressures (3,000 psi, or higher) to the pressure range required by the engine's fuel injectors (100 - 200 psi). According to AFS' test results, this new regulator outperforms the stated specifications of any regulator currently on the market. Gas pressure regulators are a vital part of all gas-fuelled vehicles and have a considerable impact on engine performance. "It is extremely difficult to design a regulator capable of maintaining a constant pressure into the fuel injectors, particularly under changing operating conditions," said AFS President John C. Anderson. "This is a significant issue since these flow pressure changes can significantly degrade engine performance and result in an increase in harmful exhaust emissions. Our new regulator was designed from the ground up to avoid these types of regulator performance problems." Over a year in development, the new AFS regulator will initially be marketed to the growing natural gas vehicle sector but is designed for use with any gaseous fuel. In the future, the use of hydrogen and other alternative fuels could potentially generate significant new markets for this product. The new AFS regulator will be used with AFS' own natural gas fuel management systems, the Eagle and the Sparrow, and with the company's hydrogen- powered system, still under development. The regulator will also be sold directly to other companies within the automotive industry. AFS has already seen considerable interest from automotive manufacturers regarding this new high-precision gas regulator, scheduled to go into production later this year. This is based primarily on the regulator's unsurpassed performance results and built-in features. There are several key features important in regulator design. The ability to maintain a consistent pressure (measured in hysterisis and pressure droop) is of primary importance, particularly in high-performance applications. Regulators must be able to withstand considerable temperature extremes and maintain durability in all types of operating conditions. Low maintenance requirements and the ability to be easily installed in a vehicle are other prime considerations. The AFS regulator meets these challenging requirements while including additional features like vibration dampening and optional fuel pressure sensors. "All of us at AFS are excited by the results of AFS' regulator development program," said Anderson. "With the number of natural gas vehicles on the road expected to surge from 1.4 million to 10 - 14 million within the next ten years, the market for quality components should continue to expand. I am very pleased that AFS will have such an outstanding new product to introduce into the automotive marketplace later this year." Alternative Fuel Systems Inc. is an environmental technology company providing innovative solutions to the global engine exhaust emissions problem. AFS has developed and commercialized electronic engine management technologies that enable diesel and gasoline engines to operate using natural gas. AFS is also at the forefront of research into exhaust aftertreatment technologies and hydrogen-based engine systems. AFS is headquartered in Calgary, Canada and trades on the CDNX as ATF. The Canadian Venture Exchange Inc. has neither approved nor disapproved of the contents of this news release. Visit our website at: www.afsglobal.com -0- 01/17/2001 For further information: Monica McLeod, Director, Investor Relations, (403) 262-1833, Fax: (403) 237-7441, Email: investor@afsglobal.com; To request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports@cnw.