Quantum Awarded Military Contract to Develop Fuel Cell Vehicle

IRVINE, Calif., Oct. 8, 2003 -- Quantum Fuel System Technologies Worldwide, Inc., announced today that it has been awarded a contract by the U.S. Army TARDEC-NAC (National Automotive Center) to develop and demonstrate a high performance, hydrogen fuel cell powered light-duty, special operations vehicle. The vehicle will be designed by Quantum's Advanced Vehicle Concept Center in Lake Forest, California. Quantum will complete the development program and will support the U.S. Army's demonstrations at military bases throughout the country.

This is Quantum's second contract supporting the U.S. Army in the development of hydrogen fuel cell systems applications. This program will integrate a hydrogen fuel cell powered hybrid electric powertrain into a light-duty off-road vehicle, and will achieve performance that meets or exceeds the gasoline internal combustion engine version. Specifically, Quantum will develop a chassis and body, integrate the fuel cell power module, design the electric drive system, design the hydrogen fuel storage and delivery system, and develop the operational and maintenance documentation.

Benefits from these vehicles will include a reduced thermal signature, near-silent propulsion, and the rapid deployment of equipment utilized by troops. With the increasing tactical and communication equipment being implemented on the battlefield and the need for electrical power to support it, fuel cell powered vehicles also have the capability of exporting electrical power silently for a multitude of applications. With fuel comprising 70 percent of the supplies transported by the Armed Services to support battlefield operations, this project has the potential to illustrate a pathway to address logistic issues.

The U.S. Army has the option to expand this project to include a refueling system designed by Quantum.

Dennis Wend, Executive Director of the U.S. Army's National Automotive Center said, "The U.S. Army is always looking at new technologies with partners like Quantum to provide solutions that address the military's challenges in the battlefield. Fuel cells have the potential to provide more efficient, stealthier vehicles through the use of advanced drivetrain technologies, and to solve tactical and logistical issues faced by the military."

Quantum's gaseous fuel products business focuses on three main areas: Transportation, Stationary Power, and Refueling Infrastructure. The company manufactures both components and end products and is an OEM vehicle level systems integrator. In the Transportation sector, Quantum designs and supplies state-of-the-art fuel system technologies to many of the world's leading OEMs with Hydrogen systems for both Internal Combustion Engine (ICE) and Fuel Cell applications and Natural Gas and LPG fuel systems for internal combustion applications. For Stationary Power applications, Quantum currently supplies components and integrated systems to developers of fuel cell stationary power products and is working to expand its product portfolio in this area. In the area of refueling infrastructure, Quantum offers several hydrogen and natural gas refueling systems focused on early infrastructure development, targeting fleets of 1 to 20 vehicles.

Quantum is a Tier 1 automotive OEM supplier. Quantum's ultra-light weight composite fuel storage, fuel injection technologies, electronic control products and OEM level systems integration capabilities have enabled the company to develop a product portfolio with state-of-the-art technologies and products, a diverse customer base, and strong alliances with partners such as General Motors, Sumitomo Corporation and former parent IMPCO Technologies.

Quantum is a member of the GM Global Fuel Cell Alliance of fuel cell commercialization companies.

Quantum's web site: www.qtww.com.