AFS ANNOUNCES THIRD QUARTER RESULTS: SALES DOUBLE COMPARED TO Q3 - 2009

CALGARY, Nov. 8 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or the "Company") (TSX Venture: AFX) announced today its financial results for the three month and nine month periods ended September 30, 2010.  Total revenue for the second quarter was $831,162, up 93% compared to revenue of $429,510 recorded in the same quarter of 2009.  Net income for the three months ended September 30, 2010 was $34,031 compared to a loss of ($110,149) in the same period of 2009.  For the nine months ended September 30, 2010, total revenue was $2,198,457, up 25% compared to $1,754,049 recorded in the same period of 2009.  In the first nine months of 2010, the Company had a net loss of ($2,439), while in the nine months ended September 30, 2009 a loss of ($68,181) was recorded.

AFS President and CEO Jim Perry stated, "We continue to see growth in our sales of engine control systems and fuel injectors.  These products are primarily being used by customers in India and Thailand as natural gas vehicle numbers increase.  In addition, in the third quarter of 2010 we shipped a significant order of natural gas pressure regulators that were ordered as spare parts by a European customer.   Overall, product sales revenue in the third quarter of 2010 was slightly more than double that recorded in the same period of 2009."

Mr. Perry added that "We are starting to see an increase in sales of our products to customers in the United States.  It appears that a combination of stimulus funds and the drive to reduce dependence on foreign oil supplies is starting to have an effect.  Most of these sales are for use in projects where diesel engines are remanufactured to run on natural gas.  While these sales are still at a fairly low level, our customers are forecasting significant growth in their activities over the coming year."

Forward-looking statements

Certain statements in this News Release including but not limited to (i) statements that may contain words such as "trend", "anticipate", "could", "expect", "seek", "may", "might", "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which the Company operates including India and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future with respect to engine controllers or otherwise, constitute "forward-looking statements" and are based on certain assumptions and analysis made by the Company. Forward-looking statements in this News Release specifically include, but are not limited to, statements with respect to future business opportunities, nature and timing thereof; business strategy; expansion and growth of the Company's business and operations and other such matters as the case may be. Such forward-looking statements are subject to important risks, uncertainties and assumptions which are difficult to predict and that may affect the Company's operations, including, but not limited to: the impact of general economic conditions; industry conditions; customer base changes; financial market conditions; government and regulatory developments; oil and natural gas product supply, demand and pricing; foreign exchange rates; competition; market conditions in the countries where the Company operates; and the Company's ability to attract and retain qualified personnel. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits or disadvantage the Company may derive there from. Except as required by applicable securities laws, the Company undertakes no intention or obligation to update or revise any forward-looking statements.

All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Company's current financial statements and other documents that the Company files from time to time with securities regulatory authorities.  Copies of these documents are available without charge from the Company or electronically on the Internet on the Company's SEDAR profile at www.sedar.com.

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For further information:

Jim Perry, President and CEO Phone: [phone] E-mail [email protected].