Quantum announces $2.1 million plug-in hybrid deal with California's South Coast AQMD

A favorite of the U.S. Army, Ford and GM for various hydrogen vehicle services (see links below), Quantum announced today that the California South Coast Air Quality Management District (AQMD) has given Quantum a $2.1 million contract to "develop and demonstrate plug-in hybrid electric vehicles (PHEVs)" that get 35-40 miles of battery-only driving.

Quantum convert 20 2008 Ford Escape Hybrids (see gallery below) into PHEVs for demonstration. The PHEVs will be powered by lithium ion battery packs and have management systems from Advanced Lithium Power Inc., one of Quantum partners. Details after the break.

[Source: Quantum Fuel Systems Technologies Worldwide, Inc.
Quantum Awarded Contract to Develop and Demonstrate Plug-In Hybrid Electric Vehicles

IRVINE, Calif., March 13 /PRNewswire-FirstCall/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ:QTWW) today announced that it was awarded a $2.1 million contract by California's South Coast Air Quality Management District (AQMD) to develop and demonstrate plug-in hybrid electric vehicles (PHEVs). Quantum will develop, manufacture, and deploy 20 Ford Escape PHEVs for demonstration in Southern California.

Under this contract, Quantum will utilize its OEM system engineering and vehicle integration methodologies to develop a plug-in hybrid version of the 2008 Ford Escape Hybrid. The PHEV system will be based on integrating a lithium ion battery pack and management system from Advanced Lithium Power Inc. (ALP), a partner of Quantum. ALP's plug-in hybrid battery system will be designed to achieve a target of 35-40 miles of battery-only range. Extensive analysis and testing, including vehicle crash testing as well as fuel mileage and emissions performance, will be completed on the Ford Escape PHEV prior to the field demonstration to ensure the safety, performance, and reliability of the vehicles.

The AQMD has been a leader in developing and demonstrating plug-in hybrid technologies. Plug-in hybrid technologies overall have potential for lower criteria pollutant emissions and zero local emissions during portions of the commute when vehicles are operating on battery only. This can provide substantial benefits to communities, neighborhoods, and schools where these vehicles operate. AQMD's draft 2007 Air Quality Management Plan calls for 100,000 PHEVs by 2014 in the South Coast Air Basin and up to one million PHEVs by 2020. This is one of the measures needed to meet the aggressive air quality goals and deadlines required by U.S. EPA. The AQMD also believes that PHEVs can be an enabling technology for all types of alternative fuels, such as CNG and hydrogen, by reducing the size of the most costly components (e.g., gaseous storage tanks and the fuel cell stack) and relying more heavily on the battery system.

"This contract supports Quantum's strategic initiatives in hybrid electric vehicles and complements our growing product portfolio of advanced vehicle propulsion systems," said Alan P. Niedzwiecki, President and CEO of Quantum. "Quantum is pleased to have been selected by the AQMD to supply plug-in hybrid Ford Escapes for their innovative program that will reduce smog-forming pollutants, reduce global warming emissions, and reduce fossil fuel consumption in Southern California. We believe that these plug-in hybrid vehicles and ALP's advanced lithium ion battery systems represent important technologies which address the critical national issues of energy security and global warming with an enormous potential to penetrate into today's hybrid electric vehicle market."

About Quantum:

Quantum and its subsidiary, Tecstar Automotive Group, are leaders in powertrain engineering, system integration, and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications including fuel cells, hybrids, alternative fuels, hydrogen refueling, new body styles, mid-cycle vehicle product enhancements and high performance engines and drive trains for OEMs and consumers of aftermarket parts and accessories. Quantum also designs and manufactures hybrid and fuel cell vehicles.

Quantum has product commercialization alliances with General Motors, AM General, and Sumitomo. Quantum's customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, AeroVironment, and the U.S. Army.

More information can be found about Quantum's products and services at www.qtww.com.

About AQMD:

AQMD is the air pollution control agency for Orange County and major portions of Los Angeles, San Bernardino and Riverside counties. This area of 12,000 square miles is home to more than 16.5 million people. It is the second most populous urban area in the United States. AQMD is responsible for controlling emissions from stationary sources of air pollution and has transportation-related programs aimed primarily at reducing the number of cars on the road and promoting the use of cleaner fuels and vehicles.

Forward Looking Statements

Except for historical information, the statements, expectations, and assumptions contained in the foregoing press release are forward-looking statements. Such forward-looking statements include, but are not limited to, the Company's expectations regarding expected future revenues and operating results; future opportunities for Quantum; the Company's ability to fulfill orders in the future; the design of ALP's lithium ion battery systems; and other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management. Such statements are subject to a number of risks and uncertainties, and actual results could differ materially from those discussed in any forward-looking statement. Factors that could cause actual results to differ materially from such forward-looking statements include, among other factors, prevailing market conditions; the Company's ability to design and market automotive products; the Company's ability to meet customer specifications and qualification requirements; availability of component parts and raw materials that meet the Company's requirements; and the Company's ability to source alternative materials and suppliers. Reference should also be made to the risk factors set forth from time to time in the Company's SEC reports, including but not limited to those contained in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2006. The Company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.