AFS receives over $500,000 in orders for new vehicle programs in India

    CALGARY, Nov. 5 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or
the "Company") (TSX Venture: AFX) announced today that it has received
approximately $540,000 CDN in new purchase orders for engine controllers.
These orders were originated by two of India's largest motor vehicle builders
("original equipment manufacturers" or "OEM's"). Advantek Fuel Systems Pvt.
Ltd. ("Advantek"), an Indian company that is working with AFS to provide
compressed natural gas ("CNG") vehicle components and systems in India,
received system orders from the OEM's and subsequently placed controller
orders with AFS. The electronic controllers are the heart of the CNG system,
ensuring optimal engine performance and exhaust emissions across the vehicle
operating range.
    AFS President and CEO Jim Perry stated that "One of the OEM's that has
chosen our product is TATA Motors, India's largest manufacturer of motor
vehicles. We are developing a customized engine controller for a new light
truck they are introducing that is fueled by compressed natural gas. This new
vehicle is known as the CNG "ACE". AFS will supply controllers for CNG ACE
production scheduled to begin early in 2008. If the new vehicle is successful
in the market, there may be substantial follow-up orders for our products."
    "A second major Indian OEM has also decided to use AFS products. Their
purchase order covers supply of a custom controller and other selected CNG
components for vehicle production also planned to commence in 2008. Again, if
the vehicles sell well, additional orders may be received."
    Mr. Perry added that "These orders represent the culmination of more than
two years of concentrated effort by both AFS and Advantek. Being selected as a
supplier to two of the largest players in the Indian vehicle market represents
a major opportunity for AFS."

    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 internal combustion engines to operate on a
variety of 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 AFS' business, 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 currency and energy
prices; availability of key components; uncertainties involving government
policies and government regulations affecting the Company's business.

For further information:

For further information: Jim Perry, President and CEO, Phone: (403)
516-6632, E-mail:; Visit our website at:

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