Quantum Awarded Contract to Develop Hydrogen Hybrid SUV for the US Army ~ Hybrid Car Review
Hybrid Car Review: Quantum Awarded Contract to Develop Hydrogen Hybrid SUV for the US Army

Thursday, February 16, 2006

Quantum Awarded Contract to Develop Hydrogen Hybrid SUV for the US Army

The army is going green, looking to evaluate and develop a hydrogen fueled hybrid (Ford Escape).

Irvine, California, February 15, 2006

Quantum Fuel Systems Technologies Worldwide Inc. has announced that it has been awarded a contract to develop a hydrogen-fueled Ford Escape Hybrid vehicle for the U.S. Army National Automotive Center (NAC).

Under this contract, Quantum will evaluate different hydrogen fuel system configurations, considering the feasibility of bi-fuel (switchable between gasoline and hydrogen) and dedicated hydrogen systems. Quantum will develop an advanced hydrogen storage system, fuel injection system, and electronic controls required for the Hydrogen Escape Hybrid. The work will be conducted by Quantum at its Advanced Vehicle Concept Center in Lake Forest, CA.

This Hydrogen Escape Hybrid contract complements the Mobile Hydrogen Infrastructure program, which is funded in the FY 06 Department of Defense budget. The overall objective of the MHI program is to demonstrate the capability of Quantum's HyHauler Plus(TM) transportable hydrogen refueling stations to meet emerging hydrogen fuel demand as hydrogen and fuel cell technologies are deployed throughout the military as part of the 21st Century Base initiative. This demonstration program includes supporting the deployment of hydrogen internal combustion engine administrative vehicles, including the Hydrogen Escape Hybrid, as well as fuel cell vehicles.

"We are pleased that the U.S. Army has selected Quantum to develop the Hydrogen Escape Hybrid, as we continue our expansion into the hybrid vehicle market," said Alan P. Niedzwiecki, President and CEO of Quantum. "We are pleased that our successes with the Aggressor high-performance fuel cell hybrid off-road vehicle, the hydrogen hybrid Prius, and the HyHauler Plus(TM) transportable hydrogen refueling stations have led to new opportunities. Quantum is excited to see the traction that our hydrogen and hybrid vehicle technologies are gaining in the growing 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 the NAC

The National Automotive Center (NAC), founded in 1992, is the Department of Defense/ Army focal point for collaborative ground vehicle research and development. The NAC, located at the Tank-automotive and Armaments Command (TACOM), is an integral part of the Army's Tank-Automotive Research, Development and Engineering Center (TARDEC). The NAC serves as a catalyst linking industry, academia and government agencies in the development and exchange of automotive technologies. The NAC leverages government, commercial industry and academia R&D investments, and initiates shared automotive technology programs. Its primary focus is to benefit current and future military ground vehicle systems through: performance improvements, service life extensions, and reduction in ground vehicle design / manufacturing / production / operation / support costs.

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; 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, 2005. 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.

Source: Quantum Fuel Systems Technologies Worldwide, Inc.

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