Quantum Fuel Systems Technologies Worldwide, Inc. (NASDAQ:QTWW) was awarded a $2.1 million contract by California’s South Coast Air Quality Management District (AQMD) to develop and demonstrate plug-in hybrid electric vehicles (PHEVs). Quantum will develop, manufacture, and deploy 20 Ford Escape PHEVs for demonstration in Southern California.

Under this contract, Quantum will utilize its OEM system engineering and vehicle integration methodologies to develop a plug-in hybrid version of the 2008 Ford Escape Hybrid. The PHEV system will be based on integrating a lithium ion battery pack and management system from Advanced Lithium Power Inc. (ALP), a partner of Quantum. ALP’s plug-in hybrid battery system will be designed to achieve a target of 35-40 miles of battery-only range.

Extensive analysis and testing, including vehicle crash testing as well as fuel mileage and emissions performance, will be completed on the Ford Escape PHEV prior to the field demonstration to ensure the safety, performance, and reliability of the vehicles.

The AQMD has been a leader in developing and demonstrating plug-in hybrid technologies. Plug-in hybrid technologies overall have potential for lower criteria pollutant emissions and zero local emissions during portions of the commute when vehicles are operating on battery only. This can provide substantial benefits to communities, neighborhoods, and schools where these vehicles operate. AQMD’s draft 2007 Air Quality Management Plan calls for 100,000 PHEVs by 2014 in the South Coast Air Basin and up to one million PHEVs by 2020.

This is one of the measures needed to meet the aggressive air quality goals and deadlines required by U.S. EPA. The AQMD also believes that PHEVs can be an enabling technology for all types of alternative fuels, such as CNG and hydrogen, by reducing the size of the most costly components (e.g., gaseous storage tanks and the fuel cell stack) and relying more heavily on the battery system.

Quantum and its subsidiary, Tecstar Automotive Group, are leaders in powertrain engineering, system integration, and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications including fuel cells, hybrids, alternative fuels, hydrogen refueling, new body styles, mid-cycle vehicle product enhancements and high performance engines and drive trains for OEMs and consumers of aftermarket parts and accessories. Quantum also designs and manufactures hybrid and fuel cell vehicles.

Quantum has product commercialization alliances with General Motors, AM General, and Sumitomo. Quantum’s customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, AeroVironment, and the U.S. Army.

More information can be found about Quantum’s products and services at www.qtww.com.

AQMD is the air pollution control agency for Orange County and major portions of Los Angeles, San Bernardino and Riverside counties. This area of 12,000 square miles is home to more than 16.5 million people. It is the second most populous urban area in the United States. AQMD is responsible for controlling emissions from stationary sources of air pollution and has transportation-related programs aimed primarily at reducing the number of cars on the road and promoting the use of cleaner fuels and vehicles.

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