SOURCE: American Power Group Corporation

American Power Group Corporation

November 10, 2014 09:00 ET

American Power Group Kicks Off Fiscal 2015 With an Expanded Vehicular Sales and Marketing Plan

Planned Additions to Direct Sales Team, Third Party Dealer Network and New Co-Marketing Relationships With Numerous National and Regional Natural Gas Fueling Suppliers

LYNNFIELD, MA--(Marketwired - Nov 10, 2014) -  American Power Group Corporation (OTCQB: APGI) today announced that its subsidiary, American Power Group, Inc. ("APG") will be expanding its existing in-house and WheelTime Network sales and marketing resources with new direct sales representatives, additional third party dealers and co-marketing relationships with numerous national and regional CNG and LNG fueling suppliers. These additional lead generation channels will continue to be supported by WheelTime's expansion of their certified natural gas installer locations across North America. APG will be hosting in-person and webinar training events over the next 60 days to a cumulative group of 90+ sales team members from these national and regional natural gas fueling suppliers.

Lyle Jensen, American Power Group's CEO, stated, "As we reviewed the early-adopter and follow-on purchasing patterns of fiscal 2014, we have determined that additional sales channels are required to increase lead generation in this evolving alternative fuel market. Heavy duty truck fleets are a "show-me" industry and so the more leads we generate, the more early-adopter orders can be booked leading to expansion into higher follow-on production quantities. We now have fleets that started with a few early-adopter conversions that have grown to 30-40 dual fuel trucks in their fleet which represents a 20% to 40% market penetration of those customers that have tried our dual fuel technology."

"APG's Turbocharged Natural Gas® solution is now being presented and supported by many leading national and regional natural gas fueling suppliers as a viable alternative solution for their heavy-duty Class 8 fleet customers to consume natural gas. With almost 500 vehicles worldwide running APG's dual fuel solution and an estimated 50+ million accumulated on-road miles, we've generated a great deal of operational and economic return creditability in the market over the past several years. We are already experiencing an increase in fueling supplier generated leads and quotation activity that we expect will favorably impact future revenue opportunities in 2015." 

Mr. Jensen added, "With the dedicated natural gas engine suppliers either delaying or abandoning development of a natural gas engine above 400 horsepower, there is a large heavy-duty truck market gap that presents a significant opportunity for us. APG's dual fuel solution is being installed on 400+ horsepower engines which typically consume 15,000 to 20,000 gallons of diesel fuel on an annual basis. By displacing between 8,000 to 12,000 annual gallons of diesel per vehicle with natural gas and having the ability to convert up to 6 existing vehicles to dual fuel for roughly the same price as one new heavy duty dedicated Class 8 truck, we provide the fuel supplier marketing teams with a very compelling economic argument for converting to dual fuel."

Mr. Jensen concluded, "Despite the recent drop in oil prices, APG is positioned to leverage several compelling trends in the on-road and off-road dual fuel high horsepower markets with its universal design and agnostic use of the various forms of natural gas. For example, due to expanding emission restrictions, there is an abundance of flared and well-head gas that needs to be conditioned and utilized. Over 65% of APG's current oil and gas dual fuel conversions operate on conditioned field gas that is at a fraction of the cost compared to a public natural gas pump price. Because our heavy-duty dual fuel truck market consumes significant amounts of fuel annually per vehicle compared to light-duty and medium-duty vehicles, many of our customers are able to attract volume discount pricing that is well below the public pump price. Additionally, many of our largest dual fuel fleets have installed their own inside-the-fence fueling stations connected directly to the U.S.'s extensive natural gas pipeline infrastructure which again is at a fraction of the cost of the public pump price. APG's dual fuel solution of utilizing lower diesel prices combined with even lower natural gas prices positions us well despite whatever fueling market fluctuations we may encounter." 

Mike Delaney, WheelTime's President and CEO, stated, "The interest we are seeing in APG's dual fuel solution has never been higher and remains undiminished by recent drops in diesel pricing. An abundance of domestic natural gas continues to maintain the pricing advantage of natural gas versus diesel and many new station openings make it vastly more accessible than it has been in the last few years". Mr. Delaney added, "Early adopter evaluation feedback and re-orders from existing APG customers are getting a lot of attention these days and we are currently seeing an unprecedented number of new inquiries. We remain convinced that APG is the best and most reliable dual fuel technology out there and we seem to share that opinion with a growing number of customer evangelists." 

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.

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