AFS SUCCESSFULLY DEMONSTRATES NATURAL GAS HYBRID BUS ENGINE CONTROLLERS

TSXV "AFX"

CALGARY, Nov. 30 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or the "Company") (TSX Venture: AFX) announced today that together with its partner Advantek Fuel Systems Pvt. Ltd., ("Advantek") the Company has successfully developed sophisticated engine controller technology that was used in three natural gas hybrid buses manufactured by India's Ashok Leyland.  These "HYBUS" demonstration vehicles were used to provide transportation services for VIP's at the recent Commonwealth Games held in Delhi.  Ashok Leyland is the largest manufacturer of buses in India.  They are also a major provider of heavy duty commercial trucks and specialty vehicles. 

AFS President and CEO Jim Perry stated "With Advantek, we were pleased to be contracted by Ashok Leyland to develop engine control hardware and software for their combination compressed natural gas engine / electric drive hybrid bus.  The controller incorporates robust and high speed communication software that allows it to exchange information with other bus systems, including the electric drive.  In this project, AFS showcased its expertise in design and manufacture of engine control systems for use in the most advanced applications." 

Mr. Perry also added that "Clean burning natural gas provides significant economic and environmental benefits compared to diesel engines.  The integration of a hybrid electrical drive with the natural gas engine in these buses is an excellent approach to improve fuel economy.  When these types of vehicles become mainstream products, AFS will already have a track record in the leading edge technology required."

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 www.sedar.com.

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

%SEDAR: 00020995E

For further information:

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

Visit our website at:www.afsglobal.com