SOURCE: American Power Group Corporation

American Power Group Corporation

February 10, 2015 09:00 ET

Prominent Freightliner/Western Star Dealer Selects APG's Dual Fuel System for Their New Severe-Duty Vocational Glider Kit Launch

APG's Dual Fuel Solution Is Filling the Natural Gas Engine Gap for 400HP to 600HP Class 8 Trucks

LYNNFIELD, MA--(Marketwired - Feb 10, 2015) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG"), has been selected by Harrison Truck Centers ("HTC") to provide APG's Turbocharged Natural Gas® Dual Fuel System for HTC's new dual fuel heavy-duty and severe-duty glider kit product line launch. 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. 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 will complement HTC's existing dedicated natural gas engine product line. 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. APG has an industry leading 459 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, "We are truly excited about adding APG's Dual Fuel solution as a glider kit option and are even more pleased that we now have a viable mainstream solution to address the underserved high horsepower natural gas engine market. With the exception of APG's Dual Fuel solution, we have not found a natural gas engine solution above 400HP that can meet the demands and power performance of heavy-haul and severe-duty vocational trucks, especially in extreme and severe operating environments."

Mr. Harrison noted, "We currently have two APG severe-duty glider trucks operating in some of the harshest oil and gas field environments in the U.S. and are experiencing great performance results and high up-time. Our marketing launch will start this spring with a Freightliner 122SD Severe-Duty Dual Fuel Glider Kit being displayed at several national truck, oil and gas and alternative fuel vehicular conferences. We expect dual fuel gliders will be rolling off the production line by early-summer."

Lyle Jensen, American Power Group's Chief Executive Officer, commented, "We continue to see a strong interest in on-highway dual fuel glider kits across the U.S. and are pleased to partner with Harrison Truck Centers to open up the severe-duty vocational market with APG's Dual Fuel solution. Today, the heavy-haul trucking industry does not have a viable natural gas engine option for the 400 to 600 horsepower Class 8 trucks. During 2014, several dedicated natural gas engine OEM's cancelled or delayed their 13-liter and 15-liter natural gas engine development leaving a huge gap in the Class 8 natural gas engine coverage. Heavy-haul fleet owners and natural gas fueling suppliers who were counting on having a 13L and 15L natural gas engine solution are showing more interest in the benefits of converting existing high-horsepower diesel engines to operate on APG's Dual Fuel system. As a result, we are gaining more attention in this specific niche of natural gas engines as people discover APG's ability to pull the heavier loads while maintaining diesel-like performance." 

Mr. Jensen added, "While the current annual on-highway glider market is reported to be in excess of 5,000 vehicles per year, the number of heavy-duty and severe-duty trucks in the oil and gas, logging and mining industries are estimated to total in the tens of thousands and represents a significant new addressed market segment."

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 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.

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