Enova Systems (Symbol:ECAR) has been selected by Hyundai Motor Company (“HMC” ) to develop and supply the drive train and power management systems for their new high performance fuel cell Sport Utility Vehicle (“SUV”). According to a Hyundai announcement on May 24, 2000, HMC has signed an agreement with International Fuel Cells (“IFC”), a subsidiary of United Technologies Corp. (NYSE:UTX), to supply the fuel cell power plant for this innovative SUV demonstrator program.

As part of this demonstrator program Enova Systems will design, manufacture, fabricate, and deliver prototype Fuel Cell Electric Vehicle (“FCEV” ) drive systems, data acquisition systems, and power management systems. Enova Systems will be responsible for managing the power supplied by the fuel cell and converting it into propulsion power for the vehicle. The sophisticated data acquisition hardware and software will allow detailed data capture and analysis that will be used to evaluate vehicle performance.

In the Hyundai release dated 24 May 2000, Dr. Young-Woo Kim, President of the Hyundai America Technical Center in Ann Arbor, Michigan is quoted as saying “We expect to unveil the preliminary results of this collaborative agreement by the end of the first quarter of next year. We expect performance of the fuel cell Santa Fe (SUV) to exceed that of our standard model and making this Santa Fe the first high performance fuel cell SUV.”

In that same release, IFC stated that their system will have a greater power density than fuel cell systems that have been tested in vehicles in the past, translating to greater power in a smaller package. As an additional benefit, they point out substantially greater system efficiency due to operation at near ambient pressure system. “We are pleased to be participating in such an innovative development effort as we continue our program of creating fuel cells for transportation and residential use,” said William T. Miller, IFC president. “We look forward both to the relationship and fully successful development outcome.”

“Enova Systems drive train technology has already been proven in the electric and hybrid-electric vehicle industry and our power management technology has been designed to be integrated with fuel cell applications,” said Carl D. Perry, President and CEO of Enova Systems. “We are proud to be a part of this major fuel cell vehicle development effort with Hyundai and IFC and we feel that our selection for this critical program further highlights our technical strength and our excellent positioning for future growth and development.”

This news release contains forward-looking statements relating to the future performance of Enova Systems and the success of its products. These forward-looking statements are subject to certain risks and uncertainties and actual results may differ materially. These risks and uncertainties are detailed from time to time in Enova Systems’ filings with the Securities and Exchange Commission.