SOURCE: GreenMan Technologies, Inc.

GreenMan Technologies, Inc.

February 17, 2010 09:00 ET

GreenMan Technologies Letter to Shareholders; Sets Annual Shareholders' Meeting Date

CARLISLE, IA--(Marketwire - February 17, 2010) - GreenMan Technologies, Inc. (OTCBB: GMTI) today announced that its Annual Shareholders' meeting will be held on Wednesday, March 31, 2010, at 9:00 A.M. at the Burlington Marriott, One Burlington Mall Road, Burlington, Massachusetts, 01803. In conjunction with the mailing of the proxy statement for the Annual Meeting and the Annual Report for the fiscal year ended September 30, 2009, the following letter to the shareholders of GreenMan was included.

To Our Shareholders:

Fiscal 2009 was a transformational year for GreenMan, one in which we completed the sale of our scrap tire recycling operations for almost $28 million and also made great strides in establishing a blueprint for our future success. Despite the difficult economic landscape encountered in 2009, as I write to you today, GreenMan has approximately $4 million in cash on the balance sheet which provides a strong foundation from which we intend to grow our business, capitalize on future projects and increase shareholder value.

A notable achievement during fiscal 2009 was our purchase of American Power Group ("APG") in July 2009. APG has developed a state-of-the-art, patented, retrofit dual fuel upgrade option for diesel engines, allowing engines to burn less diesel fuel, thereby reducing emissions as well as operating expenses. With legislation pending to reduce greenhouse gas emissions and efforts underway to limit our country's dependence on foreign oil, we believe alternative energy solutions, such as the technology provided by APG, will represent a large growth industry in the years to come. Likewise, APG's dual fuel solution has generated strong international interest, particularly in countries that rely on diesel generators due to inconsistent power grid service. APG's technology has both stationary and vehicular applications and, by using this dual fuel technology, a diesel engine or generator may be upgraded to operate on a combination of compressed natural gas and diesel; on diesel fuel and bio-methane, or on 100% diesel fuel as the situation requires. The system is capable of displacing 40%-60% of an engine's diesel fuel usage which has historically translated to net fuel cost savings of 25%-40% over that of engines running solely on diesel fuel. Additionally, the APG system is non-invasive to the original equipment manufacturer's engine which allows the engine to run within all performance limits without any performance loss.

In the months since the acquisition was completed, GreenMan has mobilized to fully commercialize APG's dual fuel technology on a worldwide basis, focusing on becoming the retrofit provider of choice for the estimated 20 million diesel engines in the U.S. and the estimated 40 million diesel engines operating internationally. The demand for alternative fuel solutions is driven by the desire for net fuel savings and improved emissions with the market for upgrades on older generators and diesel engines estimated to be in the hundreds of millions, if not several billions of dollars and noticeably underserved. Our domestic business is comprised primarily of stationary applications for generators in facilities such as government buildings, universities, cold storage warehouses, cities/towns, data storage centers and hospitals which are required by federal law to have seven full days of back-up diesel or alternative fuel power in the event of a natural or man-made disaster. We are exploring opportunities with vehicular applications in North America, including light to heavy duty diesel fleet trucks, refuse trucks, government vehicles and school buses. Internationally, APG has provided stationary applications within corporate buildings, hotels, manufacturing facilities and oil drilling rigs as well as vehicular applications for delivery trucks, city buses and government vehicles. South America, Africa, India, and Pakistan are among the countries where APG has provided its technology.

With diesel fuel prices forecasted to increase and the growing worldwide focus on protecting the environment through the reduction of greenhouse gas emissions, we believe APG's dual fuel technology is the right solution at the right time. We are optimistic about the market opportunities available to us via APG's technology and believe our investment in diesel engine dual fuel upgrades will result in a promising future for our Company and long-term value for our shareholders.

During fiscal 2009, the struggling economy and tighter discretionary spending impacted our Green Tech Products subsidiary as customers delayed or eliminated playground related expenditures. Despite these challenges, we have solidified our existing relationships with municipalities, school board associations and state-based departments of natural resources during the past year and have made progress toward expanding our footprint into new geographic markets. We believe our past work and experience as a provider of safe, ADA accessible and compliant playgrounds will continue to differentiate us in the marketplace during the coming year.

Fiscal 2009 was a tremendous year for GreenMan and we are energized by the prospect of what we can accomplish in fiscal 2010 and beyond. We are taking a disciplined approach to establishing our marketing structure and building customer loyalty across our entire organization while also remaining focused on operational excellence.

Thank you for your continued support of GreenMan Technologies; we look forward to sharing future successes.

Sincerely,

Lyle Jensen
President and Chief Executive Officer
GreenMan Technologies, Inc.

About GreenMan Technologies

GreenMan Technologies, through its subsidiaries, provides technological processes and unique marketing programs for alternative energy, renewable fuels and innovative recycled products. The Company's alternative energy subsidiary, American Power Group, Inc. (APG) provides a cost-effective patented dual fuel technology for diesel engines. APG's dual fuel alternative energy system is a unique external fuel delivery enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: 1) diesel fuel and compressed natural gas ("CNG"); 2) diesel fuel and bio-methane, or 3) 100% diesel fuel depending on the circumstances. The proprietary technology seamlessly displaces up to 70% of the normal diesel fuel consumption with CNG or bio-methane and the energized fuel balance between the two fuels is maintained with a patented control system ensuring the engines operate to Original Equipment Manufacturers' ("OEM") specified temperatures and pressures with no loss of horsepower. Installation requires no engine modification unlike the more expensive high-pressure alternative fuel systems in the market. Our Green Tech Products, Inc. subsidiary, the company develops and markets branded products and services that provide schools and other political subdivisions viable solutions for safety, compliance, and accessibility including recycled surfacing. See additional information at: www.greenman.biz, www.americanpowergroupinc.com and www.playgroundcompliance.com

"Safe Harbor" Statement: Under the Private Securities Litigation Reform Act

With the exception of the historical information contained in this news release, the matters described herein contain "forward-looking" statements that involve risks and uncertainties that may individually or collectively impact the matters herein described, including but not limited to the fact that we have sold the tire recycling operations which have historically generated substantially all our revenue and that we will be prohibited from competing in that business on a regional basis until 2013; the risk that we may not be able to increase the revenue or improve the operating results of our Green Tech Products or American Power Group divisions; the risk that we may not be able to return to sustained profitability; the risk that we may not be able to secure additional funding necessary to grow our business, on acceptable terms or at all; the risk that if we have to sell securities in order to obtain financing, the rights of our current stockholders may be adversely affected; the risk that we may not be able to increase the demand for our products and services; the risk that we may not be able to adequately protect our intellectual property; and risks of possible adverse effects of economic, governmental, seasonal and/or other factors outside the control of the Company, which are detailed from time to time in the Company's SEC reports, including the Annual Report on Form 10-K for the fiscal year ended September 30, 2009. The Company disclaims any intent or obligation to update these "forward-looking" statements.

Contact Information

  • Contacts:
    Chuck Coppa
    CFO
    or
    Lyle Jensen
    CEO
    GreenMan Technologies
    781-224-2411