SOURCE: American Power Group Corporation

American Power Group Corporation

September 21, 2015 09:00 ET

Harrison Truck Center Places Orders for 35 Glider Dual Fuel Conversion Systems

Units Destined for an Existing APG Customer Currently Operating 40+ Dual Fuel Vehicles

LYNNFIELD, MA--(Marketwired - Sep 21, 2015) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG"), has received follow-on purchase orders from Harrison Truck Centers ("HTC") for thirty-five (35) of APG's Turbocharged Natural Gas® Dual Fuel Systems for HTC's new line of dual fuel heavy-duty and severe-duty glider kits. In collaboration with WheelTime Network's Interstate Power Systems, HTC will install APG's Dual Fuel systems and associated natural gas storage tanks at HTC's glider kit production facility in Elk Run Heights, Iowa. Deliveries are scheduled for September and October. Harrison Truck Centers is an Iowa-based, full service Freightliner/Western Star dealership and one of the industry leaders in the production of Freightliner Glider Kits.

A Freightliner Glider Kit is designed, engineered and assembled alongside new Freightliner trucks giving the prospective fleet owner everything a new truck offers except for two of the three main driveline components (engine, transmission, or rear axle). The fleet owner can either recapitalize any of the driveline components from their existing unit or specify a factory installed remanufactured engine or reman rear axle. Freightliner Glider Kits are available in day cab or sleeper units with a wide range of options at a much lower cost compared to a new diesel truck. Target markets will include heavy-haul on-highway glider kits and HTC's first severe-duty dual fuel glider kits for the oil and gas, logging, and mining industries. The addition of APG's Dual Fuel system capabilities complements HTC's existing dedicated natural gas engine product line. APG has an industry leading 474 EPA engine family approvals covering a wide range of engine models that are eligible to be installed in glider kits. 

Brian Harrison, Harrison Truck Center's President and CEO, stated, "Since our APG dual fuel product launch last spring, we have seen significant interest in the benefits of our APG dual fuel glider. This summer's field demonstrations have confirmed we now have a proven mainstream dual fuel solution to address the underserved high horsepower natural gas engine market. We have not found a natural gas engine solution above 400 horsepower other than APG's dual fuel solution that can meet the demands and power performance of heavy-haul and severe-duty vocational trucks, especially in extreme or severe operating environments." 

Lyle Jensen, American Power Group's Chief Executive Officer, commented, "This order is a for a long-time APG customer who is on track to have close to one hundred dual fuel trucks in their fleet by the end of 2016. They are a prime example of someone who has a true appreciation of the economic and environmental benefits of how APG's dual fuel solution can still deliver measurable savings and provide a competitive advantage, even in today's lower priced diesel environment. The motivation for dual fuel conversions continues to be fuel savings, normal diesel-like maintenance costs, no loss of power and torque for their drivers, and a significant engine weight savings associated with gliders over new diesel engines allowing more revenue per load to be delivered. APG is proud to be a part of this win-win solution."

Mr. Jensen added, "We will display Harrison Truck Center's severe-duty Freightliner 122SD dual fuel glider at the Natural Gas for High Horsepower Summit 2015 in Dallas, TX on October 27-29, 2015. Today, the heavy-haul trucking industry does not have a viable natural gas engine option for the 400 to 600 horsepower Class 8 trucks. As a result, we are gaining more attention in this specific niche of natural gas engines as oil and gas, logging and mining fleets discover APG's ability to pull the heavier loads while maintaining diesel-like performance."

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, if the conversion conditions are not satisfied, the Subordinated Contingent Convertible Promissory Notes will not automatically convert into equity securities and we may be required to repay the principal and interest thereon, 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/A 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

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