CALGARY, April 26 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or the "Company") (TSXV: AFX) announced today that it recorded a profit of $93,774 in the year ended December 31, 2010 compared to a loss of ($47,095) for the previous year.  As announced in the press release dated January 26, 2011 total revenue from product sales, engineering and interest in the year ended December 31, 2010 was $3,274,304, up 33.5% versus the total revenue of  $2,453,236 recorded in the calendar year 2009.

Jim Perry, President and CEO of AFS stated, "We are pleased to report that we were able to turn a modest profit in 2010. The growth we have seen in our engine controller and fuel injector sales more than offset the declines we experienced in regulator sales and engineering revenue. $1,992,000 of our total revenue in 2010 was generated through controller sales, while in 2009, $1,162,000 came from that product line. Sales of fuel injectors increased from $144,000 in 2009 to $398,000 in 2010. Sales of natural gas pressure regulators were off by 12%, from $750,000 in 2009 to $655,000 in 2010, as our regulator business shifted more towards supplying spare parts for previously manufactured vehicles. Finally, engineering revenue was down 55%, from $325,000 in 2009 to $143,000 in 2010. In 2009, there were several large engineering projects that reached billable milestones. The billable milestones reached on projects in 2010 were fewer, although in the final quarter of 2010, we recorded almost $60,000 of engineering revenue."

Mr. Perry added "Overall margin on product sales in 2010 decreased to 40% from the 45% recorded in 2009. This change was a result of our engine controller sales mix moving more toward higher volume, lower margin products as well as the effects of the significant increase in the value of the Canadian dollar versus the U.S. dollar, in which most of our sales are denominated. In 2009, we received an average of $1.14 Canadian per US dollar. In 2010, a U.S. dollar only brought us an average of $1.03 Canadian. Although this is a challenging set of circumstances, we have been able to generate a profit by growing our sales volume".

AFS, based in Calgary, Canada, is a leading developer and manufacturer of natural gas vehicle engine controllers and associated components.

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; demand for natural gas engine controller technology; oil and natural gas 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

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Alternative Fuel Systems (2004) Inc.

For further information:

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

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