Amerigon Reports 1997 Second Quarter Results.

IRWINDALE, Calif.--(BUSINESS WIRE)--Aug. 8, 1997--August 8, 1997--Amerigon Incorporated (Nasdaq: ARGNA), a development stage company for components and systems for the commercial automotive market, today reported financial results for the second quarter 1997, for the period ended June 30, 1997.

Revenues in the second quarter 1997 were $350,000, compared to $1,560,000 in the prior year and $746,000 for the first six months of 1997 compared to $4,614,000 in the prior year. Revenues decreased in both comparative periods because of the completion of a major electric vehicle development contract with no replacement revenues. The Company reported a second quarter 1997 net loss of $2,373,000 or a loss of $0.25 per share compared to a net loss of $4,559,000 or a loss of $1.12 per share in the prior year.

Year to date losses for the six month period 1997 were $4,314,000 or a loss of $0.54 per share compared to a net loss of $5,179,000 or $1.28 per share in the prior comparable period. The decrease in the net loss was a result of a significant reduction in development costs associated with the electric vehicle contract.

Lon E. Bell, Chairman and Chief Executive Officer, commented, "With the completion of the previously announced joint venture (IVS, Inc.) with Yazaki Corporation, the focus of the Company will be on developing our core products, the climate controlled seat and radar based sensing devices, and bringing them to market as rapidly as possible.

"We will also continue our program to divest assets or businesses where we believe it will enhance shareholder value, he said. Because of the current development focus, divestment of IVS(TM) and the decision not to pursue any more significant grants or development contracts, revenues for the near future will be significantly less than in prior periods.

"The Company expects to continue to expend substantial funds on its development efforts and to incur losses for the foreseeable future. However, we remain extremely excited about the market for both the seat and radar products and continue to receive positive reactions from potential customers."

Separately, the Company announced that Joshua M. Newman, Vice President of Corporate Development and Secretary, is leaving to pursue other interests. Mr. Newman was President and CEO of the Advanced Technology Division and was instrumental in the successful launch of the joint venture with Yazaki Corporation. Mr. Newman will remain involved in the joint venture as a consultant.

Certain matters discussed in this release, including the Company continuing to allocate funds toward development and to incur losses for the foreseeable future, are forward-looking statements that involve risks and uncertainties, and actual results may be different. Such risks and uncertainties include the acceptance and performance of the Company's products, the Company's ability to develop new products successfully and the ability to obtain new sources of financing. Please also refer to the Company's Securities and Exchange Commission reports, including but not limited to the form 10-K for the year ended December 31, 1996.

Founded in 1991, Amerigon Incorporated is a development stage company for high technology products in the commercial automotive market. -0-

                         AMERIGON INCORPORATED
                   (A Development Stage Enterprise)

                        CONDENSED BALANCE SHEET
                            (In thousands)
ASSETS                                            December 31, June 30,
                                                      1996      1997
Current Assets:
   Cash & cash equivalents                        $    203    $  9,181
   Short term investments                              --        1,321
   Accounts receivable less allowance
      of $80                                         1,188         662
   Unbilled revenue                                  1,157         200
   Inventory, primarily raw materials                   20          20
   Prepaid expenses and other assets                   744         317
      Total current assets                        $  3,312    $ 12,229

LIABILITIES AND SHAREHOLDERS EQUITY
Current Liabilities
   Accounts payable                               $  1,567    $    366
   Deferred revenue                                    154         159
   Accrued liabilities                                 519       1,138
   Note payable to shareholder                         200          --
   Bridge notes and debentures payable               3,000          --
   Bank loan payable                                 1,187          --
      Total current liabilities                      6,627       1,663

Long-term portion of capital lease                      43          34

Shareholders Equity:
 Preferred stock, no par value; 5,000 shares
    authorized, none issued and outstanding
 Common stock;
    Class A - no par value; 40,000 shares
     authorized, 9,542 and 4,069 issued and
      outstanding at June 30, 1997 and
       December 31, 1996, respectively
      (An additional 3,000 shares held in escrow)   17,321      28,148
    Class B - no par value; 3,000 shares
     authorized, none issued and outstanding
 Class A warrants                                        --      6,767
 Contributed capital                                   3,115     3,115
 Deficit accumulated during development stage        (23,184)  (27,498)
    Total shareholders equity (deficit)               (2,748)   10,532
    Total Liabilities and Shareholders Equity       $  3,922  $ 12,229
-0-
                         AMERIGON INCORPORATED
                   (A Development Stage Enterprise)

                   CONDENSED STATEMENT OF OPERATIONS
                 (In thousands, except per share data)

                                                              From
                                                              April
                                                              3,1991
                         Three Months         Six Months    (inception)
                         Ended June 30,      Ended June 30, to June 30,
                         1996       1997     1996       1997    1997
                          (unaudited)        (unaudited)   (unaudited)
Revenues:
  Development
  contracts and
  related grants      $  1,560  $    350  $  4,614  $    734  $ 16,663
Grants                      --        --        --        12     6,168
    Total Revenue        1,560       350     4,614       746    22,831

Costs and expenses:
  Direct development
   contract and
   related grant costs   4,804     1,020     7,575     1,889    20,207
  Direct grant costs        --        --        --        28     4,760
  Research and
   development             615       456       999       712     9,499
  Selling, general
   and administrative,
   including
   reimbursable
   expenses               705      1,395     1,260     2,189    15,976
     Total Costs and
      Expenses          6,124      2,871     9,834     4,818    50,442

Operating loss         (4,564)   (2,521)   (5,220)    (4,072)  (27,611)

Interest income             5       148        41        215       781
Interest expense           --        --        --       (117)     (328)

Loss before
extraordinary item   ($ 4,559) ($ 2,373) ($ 5,179)  ($ 3,974) ($27,158)
Extraordinary loss
  from extinguishment
  of indebtedness         --         --        --       (340)     (340)
Net loss            ($ 4,559)  ($ 2,373) ($ 5,179)  ($ 4,314) ($27,498)
Loss per share before
   extraordinary item ($1.12)    ($0.25)   ($1.28)    ($0.50)
Net loss per share    ($1.12)    ($0.25)   ($1.28)    ($0.54)
Weighted average
 number of shares
 outstanding           4,063      9,543     4,056      8,024

CONTACT: Scott Davis

Chief Financial Officer

Amerigon Incorporated

[phone]

or

Peter Stack

Fleishman-Hillard

[phone]