SOURCE: American Power Group Corporation

American Power Group Corporation

August 11, 2014 09:00 ET

American Power Group Appoints Organizacion Equitel SA as Its Authorized Dealer and Certified Installer for the Republic of Colombia, South America

Order for 5 Vehicular Conversion Systems Placed for Global Building Materials Customer

LYNNFIELD, MA--(Marketwired - Aug 11, 2014) - American Power Group Corporation (OTCQB: APGI) announced their subsidiary, American Power Group Inc. ("APG"), has entered a Distribution Agreement with Organizacion Equitel SA ("Equitel"), the largest Cummins Engine Dealer in the Republic of Colombia to become its in-country authorized Dealer and Certified Installer. In addition, APG received an evaluation order from one of Equitel's business units, Cummins de los Andes, to convert three heavy-duty trucks and two cement mixers to operate on APG's Turbocharged Natural Gas® dual fuel system. The evaluation period is anticipated to be completed during the last calendar quarter of 2014. The end customer, a large global leader in the building materials industry with a presence in more than fifty countries, previously placed an order for 38 APG vehicular conversion systems with APG's Dominican Republic dealer in June. The exact value of the order and the end customer have not been disclosed for proprietary reasons.

Juan Jose Piedrahita, President of Equitel, commented, "After 55 years of involvement in the power generation and automotive markets in Colombia and more than 17 years developing solutions related to the gas business, it is a tremendous pleasure for us to have found a company with the technology, principles and marketing capability as APG. We believe that with their expertise and our experience in the Colombian market we will soon become leaders in turnkey solutions on dual fuel for our automotive customers. We will start a pilot with one of the largest cement companies in the world with a potential of more than 250 vehicles to be transformed in Colombia. We are certain that after succeeding with the pilot test that we are working on today, becoming leaders in our market with this important alliance will become a reality."

Lyle Jensen, American Power Group Corporation's Chief Executive Officer, stated, "We are pleased to add another strong partner to our growing international dealer/installer network. Equitel is a well-recognized and well respected company and the leader in sales and service of primary and emergency back-up power generation systems in Colombia. They specialize in the marketing and service of one of the world's leading engine manufacturers (Cummins) for construction, power generation, industrial, agricultural, mining, marine, military, cargo, on-highway, and passenger transportation applications. We look forward to supporting Equitel's strategic vision of expanding natural gas usage in Colombia where there are approximately 55,000 Class 8 trucks in operation." 

Mr. Jensen added, "We are very pleased to see this customer expand their evaluation efforts to more of their operations and are confident in our ability to once again provide acceptable results for this new location and application. We are now working with them in both the Caribbean and South America which we believe can provide the opportunity for expanded globalization opportunities in the building materials industry as well as other additional on-road and off-road conversions in and beyond the region."

About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas® conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy 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 liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 75% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.

Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, the fact that our dual fuel conversion business has lost money in the last five consecutive fiscal years, the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, the fact that we have preferred stock outstanding with substantial preferences over our common stock, the fact that the conversion of the preferred stock and the exercise of stock options and warrants will cause dilution to our shareholders, the fact that we incur substantial costs to operate as a public reporting company and other factors that are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2013 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information

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    American Power Group Corporation
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