Quantum and Asola Announce Solar Expansion into Korea

IRVINE, Calif., ISSERODA, Germany, and CHUNGNAM, Korea, Sept. 15,, 2008 - Quantum Fuel Systems Technologies Worldwide, Inc. today announced that its German solar photovoltaic partner, Asola has signed a Memorandum of Understanding to establish a joint venture manufacturing plant in South Korea, to enable production and distribution of high quality, German-designed solar modules in South Korea. The Korean partner Q&Tech / Yongsan Inc., is a high volume manufacturer of electronic and automotive components and a leading supplier to the global automotive industry. The initial capacity is 30 MW (megawatts of peak power) solar modules consisting or mono- and poly-crystalline silicon solar modules, with a potential to generate revenues in excess of $100 Million annually.

The manufacturing facility in Korea will employ equipment, processes and quality controls that are identical to Asola's state of the art 45 MW facility in Germany, incorporating Asola's 20-year solar module manufacturing experience. The modules will be designed in Germany, incorporating the best practices from the largest solar market in the world. Silicon solar cells are expected to be centrally purchased in Germany, to benefit from economies of scale.

"I look forward to a long and mutually beneficial relationship with our partner in Korea", said Reinhard Wecker, the founder and CEO of Asola. "Our strategy is to associate with organizations that are established players in the solar industry or experienced high volume manufacturers of similar products. Our partner is already a trusted supplier to the automotive, telecommunication and electronics industries, and we are pleased to work with them".

"South Korea, with their ambitious target of 1 GW (giga watts peak power) solar energy production by 2012, is one of the fastest growing solar energy markets in the world", commented Alan P. Niedzwiecki, President and CEO of Quantum. "Expansion into Korea provides us a timely vehicle for accelerated growth, to complement the markets in Europe".

"We were attracted to the Asola-Quantum team due to their automotive industry heritage and focus on innovation, precision engineering and quality. We look forward to launching a solar production plant as soon as possible to participate in the accelerated solar energy market development in this country", commented Seo Sang Jo, CEO of Q&Tech/Yongsan.

Quantum holds a 25% stake in Asola, and has initiated discussions related to an expanded partnership in a "Centralized Holding Structure". Quantum and Asola have entered into a long-term supply agreement with Ersol Solar Energy AG for the procurement of 155 MW of high-efficiency silicon photovoltaic solar cells, starting in 2008. Together with supply contracts with other major suppliers around the world (i.e. SUNERGY, MOTECH and others), the Ersol agreement guarantees a steady supply of solar cells to Quantum and Asola. Resulting sales from these supply agreements are anticipated to generate in excess of US $600 million for Asola and Quantum.