Hyundai-Enova Innovative Technology Center Completes 60 kW GenSet for Heavy-Duty Series Hybrid Vehicles.

TORRANCE, Calif. -- Hyundai-Enova Innovative Technology Center, Inc., (HE-ITC) Torrance, California, joint venture between Hyundai Heavy Industries Co. Ltd (HHI) of South Korea and Enova Systems, Inc. (OTCBB:ENVA), announced today that it has completed development of a 60 kW GenSet for Heavy-Duty Series Hybrid Vehicles in conjunction with Enova Systems. The 60 kW GenSet is an integral component of Enova's HybridPower Series Hybrid, recently introduced at the Electric Drive Transportation Association's annual symposium in Orlando Florida. This leading-edge hybrid technology is the HE-ITC's first commercial product to be developed and produced by the joint research and development alliance between the two companies.

Formed in 2003, the HE-ITC's mission is to develop commercially viable products in the alternative energy sector which can be marketed by both parent companies. The HE-ITC is also developing a next-generation parallel hybrid motor and motor controller for automotive OEMs for prototype delivery in late 2004. These types of hybrid technologies are ideal for the HE-ITC because of the strength of its parent companies in these fields.

"The HE-ITC represent a milestone alliance for both companies and we are proud to be a featured component in Enova's newest HybridPower drive system," remarked Don C. Kang, HE-ITC president and CEO, "The combination of HHI's development and manufacturing process and Enova's experience and reputation in the hybrid propulsion system markets creates an opportunity to bring advanced products to the market faster and with more versatility. The HE-ITC is proud to be working with HHI and Enova on these types of leading edge hybrid vehicle programs which will reduce fuel consumption as well as decrease harmful vehicle emissions."

"Our newest drive system offers the total solution for heavy-duty vehicle manufacturers and operators who seek to increase fuel economy and reduce harmful emissions. The development engineering provided by the HE-ITC was vital to Enova getting to market more quickly," commented Ed Riddell, President and CEO of Enova. "Working with our partner, HHI through the HE-ITC, affords Enova the ability to advance its technologies to new levels. We look forward to many more projects of this type and other alternative energy systems for commercial and industrial markets internationally."

The 60 kW GenSet mates an AC induction motor to a modern Diesel that is used in Euro 3 emissions compliant systems. The control is a variable speed variable frequency vector control that is mapped to the torque profile of the Diesel engine. The combination of an advanced Diesel engine and advanced motor control results in a very efficient system for the full range of power generation.

Series hybrid drive systems are distinguished for utilizing both an internal combustion engine (ICE) and an electric drive motor. The result is maximum power and greater efficiency - with less fuel consumed and fewer polluting emissions. The series hybrid is ideal for urban delivery and transit bus applications requiring a powerful electric motor for transient loads such as acceleration, while relying on a much smaller engine to operate the on-board generator for cruising loads. The operation of the smaller engine at constant speeds yields significant improvements in emissions and fuel economy, as part of a vehicle that delivers the road performance expected by customers. Because this smaller engine generates power, series hybrid can be configured to generate alternating current electricity for other applications such as plug-in power tools.