Alternative Fuel Systems Inc. Forms Important Alliance With Daimler Chrysler Licensee ``IDEM'' in Iran.CALGARY, Alberta--(BUSINESS WIRE)--June 28, 1999-- Alternative Fuel Systems Inc. (AFS A distributed file system for large, widely dispersed Unix and Windows networks from Transarc Corporation, now part of IBM. It is noted for its ease of administration and expandability and stems from Carnegie-Mellon's Andrew File System. AFS - Andrew File System ) Monday announced the signing of a detailed Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. (MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. ) with the largest diesel engine manufacturer in Iran. Iranian Diesel Engine Manufacturing Company (IDEM) manufactures Mercedes Diesel Engines under license from Daimler Chrysler. Daimler Chrysler has a 30 percent ownership interest in IDEM. AFS has successfully demonstrated its patented technology with Mercedes engines in prior programs in Brazil, Argentina, Chile and Thailand. AFS president, Gerry Klopp stated, "Because AFS has over 10 years of actual in-service experience with Mercedes engines, no additional research and development was required to reach this agreement with IDEM. Proven field performance, emission reductions, fuel efficiency, reliability, and driveability were the deciding factors in this deal." AFS will supply IDEM with 4,000 electronic fuel management systems over the next two years. Under the terms of the MOU, a firm order will be placed by IDEM after 30 days of on-road demonstration, to be completed by Aug. 15, 1999. IDEM engineering personnel will participate in the road demonstration which is to take place in the city of Tehran or Tabriz. As part of their commitment, IDEM is arranging a DM$150,000 (CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $125,000) bank guarantee in favour of AFS to expedite the program. The value of the AFS components supplied will range between US$1,100 to $3,000 per unit depending on applications. Klopp added, "This initial contract is expected to lead to mass production of natural gas powered diesel engines, not only within Iran, but for export markets as well. We are thrilled!" AFS designs, develops and markets advanced technology fuel management and exhaust treatment systems that permit diesel and gasoline engines to operate on clean burning, environmentally friendly compressed natural gas Compressed Natural Gas (CNG) is a substitute for gasoline (petrol) or diesel fuel. It is considered to be an environmentally "clean" alternative to those fuels. It is made by compressing natural gas (which is mainly composed by methane (CH4 . Commercial success and sales of the Sparrow and Eagle Systems continue to grow. AFS's most recent breakthrough, the reverse flow catalytic converter, previously referred to as the RFC (Request For Comments) A document that describes the specifications for a recommended technology. Although the word "request" is in the title, if the specification is ratified, it becomes a standards document. , has now been formally named the "Condor." The development of new cutting edge technology is ongoing at AFS as the company continues to be a leader in the field of reducing engine emissions. AFS has successfully won contracts in Mexico and China, and is engaged in ongoing negotiations in many regions of the world including India, Japan, Australia, Chile, and Europe. The Japanese high tech Isuzu 6HHI engine equipped with the AFS "Eagle II" recently received JARI JARI Japan Automobile Research Institute JARI Jute Agricultural Research Institute (India) Certification after test results achieved pollution levels 15 percent-91 percent below stringent 13 mode LEV levels set in Japan. AFS is listed on the Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). , trading under the symbol ATF ATF Molecular virology Activating transcription factor A cellular protein that stimulates transcription of adenovirus E4 transcription unit, which acts early in infection at any of several 'enhancer' binding sites . For further information contact: Alternative Fuel Systems Inc. Jo-Anne Cappis Investor Relations 403/262-1833 403/237-7441 (FAX) E-mail: afsweb@telusplanet.net Web site: www.altfuelsys.com The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. |
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