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USA: IMPCO Reports Record Quarter Revenues; Heavy Investment in Fuel Cell Research and Development

By Press Release | 31 August 2000

IMPCO Technologies, Inc. (Nasdaq: IMCO - news), has reported record revenues for its first quarter ended July 31, 2000.

For the first quarter of Fiscal 2001, ended July 31, 2000, IMPCO reported a net loss of $608,000 or 0.07 cents per share on revenues of $29.3 million, a 3% revenue increase from the prior year's first quarter results. This compared to net income of $1.6 million or 18 cents per diluted share for the first quarter in fiscal 2000 on revenues of $28.4 million. During the current year quarter IMPCO invested a record $6.0 million (20% of revenue) in research and development, nearly a 100% increase from fiscal 2000 first quarter levels. Substantial portions of the increase were associated with IMPCO's expansion of engineering facilities and staff to support current and anticipated fuel cell and alternative fuel OEM programs. IMPCO anticipates future increases in research and development as it strengthens its technology and market leadership position in fuel storage, metering and electronic control systems in the rapidly emerging Fuel Cell Industry.

First quarter product revenues, compared to the prior year first quarter, decreased $458,000 or 1.7%. This decrease is primarily due to an end in the short-term increase in small engine sales related to Y2K and a slow down in after market automotive sales in Mexico. Automotive OEM sales reached $4.3 million, a 10% increase over the first quarter in the prior year. Industrial systems sales remained strong with the Industrial Engine Systems business growing 28% compared to the first quarter last year. Material handling sales grew 24%.

Robert Stemmler, IMPCO's Chairman and CEO, stated that "The recent successful follow-on equity offering, lead managed by Robertson Stephens and co-managed by CIBC World Markets and FAC/Equities, provided the Company $53.5 million in capital and has allowed us to expand and accelerate our research and development in fuel cell propulsion technologies as evidenced in the current quarter R&D and other operating expenditures. We have also opened additional facilities in Lake Forest, California and Sterling Heights, Michigan to expand our testing capabilities and vehicle integration capacity to meet anticipated increased OEM activity in developing alternate fuel and fuel cell vehicles. The OEM interest in IMPCO's fuel storage and delivery systems remains robust as evidenced by our recent announcement with Hyundai to provide fuel storage and delivery for their fuel cell powered Santa Fe SUV, which will be demonstrated this fall in conjunction with the California Fuel Cell Project. Additionally, we have extended our alternative fuel OEM production program with GM to continue past the middle of the decade. We are aggressively pursuing alternative fuel and fuel cell related programs with other OEMs at the present time."


Other significant recent developments have included:

-- On August 24, 2000 IMPCO announced the appointment of JD Power III to the Board of Directors of IMPCO. Mr. Power is the Chairman of J.D. Power & Associates, one of the most prestigious marketing information firms in the World.

-- On June 12, 2000 IMPCO announced that it had formed a strategic
technology alliance with NASA Space Shuttle rocket booster manufacturer, Thiokol Propulsion, Alcoa Industrial Components Group, a subsidiary of Alcoa, Inc., (NYSE: AA - news). The alliance allows IMPCO to advance the commercialization of Thiokol's unique composite conformable hydrogen fuel storage technology for the emerging automotive fuel cell markets and to utilize their strong missile based hydrogen fuel expertise.

-- On June 5, 2000 IMPCO disclosed that it had been awarded a $2.6 million contract from the Department of Energy to design, prototype and produce ultra-lightweight production hydrogen tanks for demonstration on two vehicle programs in association with the DOE's Lawrence Livermore National Laboratory.


IMPCO is a leading designer, manufacturer and supplier of fuel storage, fuel delivery and electronic control systems that allow internal combustion engines and fuel cells to operate using clean fuels such as hydrogen, propane, natural gas and methanol. IMPCO's advanced fuel system technologies are designed to optimize efficiency and performance by electronically sensing and regulating the proper proportion of fuel and air used by internal combustion engines and fuel cell systems. IMPCO supplies its products and fuel system integration to original equipment manufacturers of motor vehicles, truck, buses, forklifts, material handling equipment and small portable to large stationary engines. IMPCO also supplies these products and services to the global aftermarket.

Headquartered in Cerritos, California, IMPCO has more than 400 distributors and dealers and 17 offices and facilities worldwide including: United States, Australia, Japan and Mexico. IMPCO operates in the Netherlands, France, Germany and the United Kingdom as IMPCO-BERU Technologies, B.V. IMPCO's website is: www.impcotechnologies.com