Xebec Adsorption Inc.

Xebec Adsorption Inc.

August 28, 2009 13:44 ET

U.S. DOE Announces Funding for Natural Gas Vehicles Under the Recovery Act

MONTREAL, QUEBEC--(Marketwire - Aug. 28, 2009) - Xebec Adsorption Inc. (TSX:XBC) ("Xebec"), a global leader in the drying and purification of natural gas for NGV refueling stations, announced today that the U.S. Department of Energy's (DOE) Clean Cities program has awarded US$300 million in funding to build more than 9,000 alternative fuel and energy efficient vehicles and 542 refueling stations.

"Xebec believes that natural gas as a transportation fuel in the United States has a bright future and the decision by the DOE is an important step in the direction of making the U.S. energy independent while at the same time significantly reducing green house gas admissions," said Kurt Sorschak, President and CEO of Xebec. "Xebec has been in the natural gas vehicle refueling market for over 25 years and enjoys a market share of over 90% in the dehydration of natural gas for refueling stations in the United States."

Details of the projects approved for funding can be found on the DOE website at www.energy.gov/news2009/7843.htm.

Xebec cautions that no contracts have been awarded for these programs and no orders for vehicles have been released yet. While the exact timing of the funding awarded to applicants is unclear at this time, the Company expects further updates from both our customers and government agencies as contracting processes begin.

About Clean Cities

Clean Cities is a government-industry partnership sponsored by the U.S. Department of Energy's (DOE) Vehicle Technologies Program. Clean Cities' mission is to advance the energy, economic and environmental security of the United States by supporting local decision to adopt practices that reduces the use of petroleum in the transportation sector. The funding is provided under the American Recovery and Reinvestment Act awards for alternative fuels and advanced vehicle pilot program.

Caution Concerning Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to the completion of the transaction, the synergies that can be achieved by the combination of Xebec and QuestAir, and information regarding the business, operations and financial condition of Xebec. Forward looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.

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