Alternative Fuel Systems Inc. (CDNX: ATF) ("AFS") announced today that the company has been awarded two more patents in the United States for its innovative products. The latest patents were issued for the Sparrow electronic fuel management system and for its Reverse Flow Catalytic Converter ("RFC"). The AFS Sparrow system enables gasoline or diesel base engines to operate powerfully and efficiently using 100% natural gas and is already in fleet use around the world. The RFC is part of a joint project between AFS and Matros Technologies to develop an exhaust aftertreatment product to combat the unique problem of diesel engine exhaust. The RFC is designed to reduce harmful emissions by up to 80% including NOx, PM, and Hydrocarbons. The original version of the RFC is currently undergoing fleet and durability testing. Present U.S. regulations require new aftertreatment systems to have a minimum 100,000 mile capability without degradation. Development of a second version of the RFC, with advanced features, is also underway.

In recent engine tests, the Sparrow demonstrated increased power and torque and reduced emissions in combination with the new Sparrow ignition system. Power and torque increased more than 10% over the complete base diesel engine operating spectrum. Emission tests indicate the Sparrow's ability to meet EURO III emission levels, which is a significant achievement over most commercially available natural gas fuel management and ignition systems.

Alternative Fuel Systems Inc. is an environmental technology company providing innovative solutions to the global engine exhaust emissions problem. AFS has developed and commercialized electronic engine management technologies that enable diesel and gasoline engines to operate using natural gas, and is at the forefront of research into exhaust aftertreatment technology. AFS is headquartered in Calgary, Canada and trades on the CDNX as ATF.