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Technology Stocks : Ballard Power -world leader zero-emission PEM fuel cells -- Ignore unavailable to you. Want to Upgrade?

To: hsg who wrote (3207)	10/23/1998 10:10:00 AM
From: Fishfinder	Read Replies (1) \| Respond to of 5827

I hope I'm not pushing the limits of the thread too far. But anyhow to answer your question I think it is appropriate for me to simply post the ATF news release. CALGARY, Sept. 14 /CNW/ - Motor Medics (India) Private Limited (MIP) has signed an agreement with Alternative Fuel Systems lnc. (AFS) in which MIP agrees to enter immediately into a purchase agreement with AFS for 2000 Sparrow conversion systems with high pressure gas components. The price to MIP is $1300 U.S. per system. The purchase agreement is subject to AFS receiving ''Type Approval'' from the Petroleum Institute in Dehradun, India, meaning engine model must be vehicle specific and approved. The agreement stipulates MIP will immediately begin negotiations with Maruti Uydog Ltd. (MUL) for the annual minimum supply of 20,000 Sparrow conversion systems for OEM installation and sales in India and more particularly in the National Capital territory of New Delhi, resulting in minimum annual revenues of $25 Million U.S. MUL manufactures approximately 75% of the cars operating in India; ownership of MUL is divided equally between the Government of India and Suzuki Motor Corporation. In addition, the agreement states MIP is undertaking to commit to locally manufacture Sparrow conversion systems for NGV sales quantities in excess of 30,000 units per year in India. The form of cooperation for manufacture in India may be a joint venture or a licensing agreement, with MIP sourcing capital and personnel and AFS supplying expertise and technology transfer. AFS will assist MIP in developing and training Sparrow manufacture, assembly and quality control personnel in India. An arrangement will be included whereby AFS may purchase Sparrow systems manufactured in India for sales outside India. AFS and MIP will work together to develop support and participation in the project by natural gas or pipeline companies from outside India to possibly initiate pipeline and/or NGV fill station projects in India. Under the terms of the agreement, AFS will act as coordinator and technical adviser to MIP for the design and sourcing of NGV cylinders and fill station components by means of a 5% consulting fee addition to all quotations from suppliers to MIP. AFS recently supplied its fuel conversion systems for a pilot project in New Delhi, as announced by the Company May 25, 1998. A Maruti Esteem passenger car, manufactured by Maruti Udyog Ltd. (MUL) and installed with an AFS Sparrow conversion kit, has passed Indian Driving Cycle mass emission criteria and has been returned to Maruti for in-house testing. The system will be sent to the Indian Petroleum Institute in Dehradun for final ''Type Approval''. Three additional Maruti models - the Zen, Omni and Gypsy - will also be converted with AFS systems adapted for each model, and sent for ''Type Approval''. The program will be phased in beginning with government fleet vehicles. ''Type Approval'' for the already tested model is expected by November 1, 1998, with first shipment of product scheduled for early 1999. The government of India is introducing legislation to make NG use in cars, trucks and buses mandatory, in an effort to reduce exhaust emissions. Seven NG refueling stations are already strategically located throughout New Delhi with eight under construction. Full certification by the federal government of Mexico in June 1998 gave AFS full endorsement of the AFS Sparrow system, which converts gasoline-burning engines to natural gas. These test results not only met but exceeded new emissions standards up to 75 percent below the amount of NOx and reactive HC emissions permitted by new Mexican regulations, giving them wide margin of clean exhaust emissions. These tests were achieved without compromise to performance and driveability. The initial 540 AFS Sparrow systems of the Phase I contract for 1080 systems were shipped to Mexico in July. The second 540 systems will be shipped by the end of September to complete the initial Phase 1, $2 Million contract. The MIP agreement represents the second in a series of commercial worldwide contracts AFS expects to receive in 1998. AFS has ongoing projects in Asia, United Kingdom, Europe, India, Latin America, Mexico and North America. Scott