AFS announces additional India projects for TATA Motors

    CALGARY, Jan. 30 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS or
the Company") (TSX Venture: AFX) announced today that it has been selected to
develop and supply compressed natural gas ("CNG") engine control systems for
two additional vehicle models being launched by TATA Motors, India's largest
manufacturer of motor vehicles. These two projects are in addition to the TATA
CNG "ACE" project announced late in 2007.
    AFS President and CEO Jim Perry said that "We are pleased that TATA
Motors has selected AFS to provide engine control electronics for these two
new platforms. Our partner in India, Advantek Fuel Systems Pvt. Ltd.
("Advantek") will be supplying other fuel system components, as well as
coordinating delivery of the controllers. The CNG version of the Xenon pickup
truck is planned to be launched in the first half of 2008. This 4 cylinder
vehicle will require a significantly more sophisticated engine controller than
is required for the 2 cylinder ACE project. The Xenon has many more features
and options, and as a result, the controller will feature a more powerful
central processor and considerably more capability. This engine controller
will also form the basis for the second new project, the Winger delivery van.
The Winger is scheduled to begin production later in 2008."
    Mr. Perry added that "Sales volumes of these two engine controllers will
depend on the success of the CNG variants of the Xenon and the Winger in the
market. We look forward to working with TATA Motors and Advantek on these two
high potential opportunities."

    AFS is a Canadian company providing innovative and cost-effective
solutions to the growing global problem of harmful exhaust emissions from
internal combustion engines. AFS has commercialized electronic engine
management systems enabling diesel and gasoline engines to operate on cleaner
burning natural gas and other alternative fuels. The Company is headquartered
in Calgary, Canada and trades on the TSX Venture Exchange under the trading
symbol AFX.

    Forward-looking statements - this news release may contain
forward-looking statements about the business of AFS and marketing and product
development plans based on the current expectations of management.
    AFS cautions investors that any forward-looking statements are subject to
various risks, uncertainties and other factors that could cause the Company's
actual results to differ materially from those expressed in, or implied by
forward looking statements. These risks, uncertainties and other factors
include, without limitation, uncertainty related to the Company's ability to
successfully implement its business strategy; the risk that product
development projects may not be completed successfully or in a timely manner;
the ability of the Company to successfully negotiate and execute definitive
agreements with its customers; the development of competing technologies and
the possibility of increased competition; fluctuating energy prices;
uncertainties involving government policies and government regulations
affecting the Company's business.

                   Visit our website at:

    %SEDAR: 00020995E

For further information:

For further information: Jim Perry, President and CEO, Phone: (403)
516-6632, E-mail:

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