SOURCE: American Power Group Corporation

American Power Group Corporation

March 18, 2015 09:00 ET

American Power Group Expands Industry Leadership Role With Third Intermediate Useful Life Submission Approval From EPA Within Last 90 Days

30 Additional Detroit Diesel Engine Families Approved Totaling an Industry Leading 473 EPA Approvals; 8 New Detroit Diesel DD13 Engine Families With SCR Technology Bring Total IUL SCR Approvals To 17

LYNNFIELD, MA--(Marketwired - Mar 18, 2015) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG"), has received online notification from the U.S. Environmental Protection Agency ("EPA") that its recent Clean Alternative Fuel Vehicle and Engine Conversion Submission has been approved for the following additional Intermediate Useful Life ("IUL") engines:

    Detroit Diesel DD13   12.8L   (2012 to 2008)
    MBE 4000   12.8L   (2009 to 2007)
    Detroit Diesel Series 60   12.7L   (2006 to 2005)
    Detroit Diesel Series 60   14.0L   (2009 to 2005)
    Detroit Diesel DD15   14.8L   (2009 to 2008)

The submission utilized APG's V5000 Dual Fuel Turbocharged Natural Gas® technology which is required to meet specific design, componentry and emission compliance criteria per the EPA Final Rule 40CFR Parts 85 and 86. Eight Detroit Diesel DD 13 engine families became APG's third IUL approval covering Selective Catalyst Reduction ("SCR") engine technology which meets or exceeds the current 2010 EPA OEM certified engine emission standards. APG leads the industry with 473 OUL and IUL approvals covering six of the top OEM engine platforms including 17 IUL approvals for 2012-2010 OEM engine families (Detroit Diesel DD15/DD13 and Mack/Volvo D13) with SCR engine technology.

Lyle Jensen, American Power Group Corporation's President and Chief Executive Officer stated, "We are especially pleased to add the 2012-2010 Detroit Diesel DD13 family with SCR engine technology to our list of EPA approved engines. The DD13 engine offers an optimal blend of performance and efficiency that is specifically designed for the less-than-truck-load (LTL), regional distribution and vocational applications. Logistic traffic patterns are beginning to change to more of a hub and spoke route versus the historical long haul routes. The DD13 engine, in an APG Dual Fuel configuration, addresses this new traffic pattern and opens up an expanded natural gas vehicular market for APG in the 350HP to 470HP range." 

Mr. Jensen added, "IUL engine approvals including those with SCR technology are critical for us to address the needs of the larger national and regional fleet operators who rotate their vehicles every four to five years. Since our first IUL engine family approval in December 2014, we have several notable Top 100 Fleets, as ranked by Transport Topics, evaluating our new Natural Gas Turbocharged® Dual Fuel Technology. We have secured a list from R.L. Polk of approximately 4,300 U.S. registered DD13 owners representing over 30,000 trucks for engine production years 2013-2010. This target list will be marketed through our natural gas supply partners and our WheelTime Certified Dealer Network who have been Detroit Diesel parts and service dealers for years and have established business relationships with many of the identified fleet owners. We estimate there are 600,000 - 700,000 Class 8 trucks that fall into the total eligible IUL designation."

Mr. Jensen concluded, "One of the most important attributes of APG's non-invasive Dual Fuel System for truck owners who rotate their fleet every four to five years is the ability to transfer the APG system and natural gas tank to their next vehicle at the time of rotation. This allows the fleet owner to realize maximum end-of-life value for the truck being rotated out as a clean burning diesel truck. For a few thousand dollars, the next truck in rotation can be up-fitted with the existing APG Dual Fuel System and natural gas tank and APG's read-only electronic control module will be re-programmed to the next applicable EPA approved engine model. APG's system and third-party natural gas tanks are rated for a 15 to 20 year operating life that can generate estimated lifetime fuel savings measured in the hundreds of thousands of dollars or multiples of the total dual fuel investment. Our recent EPA approvals with SCR engine technology will open up more opportunities for us and underscores APG Dual Fuel technology as a valuable long-term cost reduction asset." 

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, 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, 2014 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.

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