SOURCE: American Power Group Corporation

American Power Group Corporation

April 06, 2015 09:00 ET

American Power Group Ships Order for 38 Vehicular Conversion Systems Received From Its Dominican Republic Authorized Dealer/Installer, Caribbean Power Group

Supports the Heavy-Duty Vehicular Expansion of Natural Gas in the Dominican Republic

LYNNFIELD, MA--(Marketwired - Apr 6, 2015) - American Power Group Corporation (OTCQB: APGI) announced their subsidiary, American Power Group Inc. ("APG"), has shipped out of backlog, an order valued at over $200,000 received from Caribbean Power Group S.R.L, its authorized dealer and certified installer in the Dominican Republic, to convert 38 additional heavy-duty trucks to operate on APG's Turbocharged Natural Gas® dual fuel system. While the end customer and the exact value of the order were not disclosed for proprietary reasons, the end customer is a global leader in the building materials industry with a presence in more than fifty countries and a strong commitment to integrating sustainability initiatives into their global business strategy.

Milton Zarzuela, President of Caribbean Power Group, reiterated, "We have been working with this customer on the pilot order for a long time to validate field performance, economic payback and the emission reduction benefits of APG's dual fuel solution and are pleased that we have finalized all elements necessary to begin the conversion process. Based on data obtained during the initial field evaluation phase, our customer estimates a potential aggregate annual net fuel savings of over U.S. $600,000 per year from the conversion of a total of 40 units." Mr. Zarzuela added, "Our customer has verbally indicated they are still interested in converting more of their local 200 truck fleet to APG's dual fuel system over the coming year. We are also considering entering natural gas fuel supply agreements with our client's suppliers, who operate more than 700 trucks as an incentive to begin adoption of APG's dual fuel solution. We estimate that there are over 20,000 heavy duty trucks currently operating in the Dominican Republic and believe we now have a blueprint on how to expand natural gas into our domestic heavy-duty truck market." 

Lyle Jensen, President of American Power Group, added, "We applaud the tenacity and leadership of Caribbean Power Group for managing through an effective and lengthy evaluation and approval process resulting in the largest single customer production order we've had to date. As a result of the positive results of our dual fuel solution and the groundwork laid by the Caribbean Power Group team locally, we are in multiple pilot order discussions with several other locations of this global leader in both Central and South America." 

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.

About Caribbean Power Group
Caribbean Power Group was created for the purpose of sales and installations of equipment that has a positive impact on both the environmental profile as well as economic performance of diesel powered equipment. Please visit our website: www.caribbeanpowergroup.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 six 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, 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.

Contact Information

  • Media Information Contact:
    Kim Doran
    Quixote Group
    336-413-1872
    Email Contact

    Investor Relations Contacts:
    Chuck Coppa
    CFO
    American Power Group Corporation
    781-224-2411
    Email Contact

    Mike Porter
    Porter, LeVay, & Rose, Inc.
    212-564-4700
    Email Contact