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Past ASX Release
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22 February 2006 ADVANCED ENGINE SIGNS MOU FOR INDIA Advanced Engine Components Ltd ("ACE" or "the Company") is pleased to announce the signing of a Memorandum of Understanding ("MOU") with Vialle Alternative Fuel Systems Private Limited ("VAFS") of India. ACE has been seeking an appropriate joint venture partner in India for a number of years. India, like China, has a large population, significant reserves of natural gas, high volume fuel oil imports, unacceptable air pollution and proactive Government legislation directing the use of natural gas as an alternative fuel source. India already has in excess of 200,000 natural gas vehicles including more than 10,000 buses. VAFS has a technology transfer agreement and components supply arrangement with Vialle Alternative Fuel Systems BV ("Vialle") of the Netherlands (www.vialle.nl). With over 35 years experience Vialle is recognised as a world leader in applications for alternative fuels. VAFS was formed in 1999 to focus on the demand from Indian original equipment manufacturers ("OEM's") for alternative fuel systems. Since 1999 VAFS has fitted Euro 3 compliant LPG systems to over 20,000 Maruti Suzuki (the largest car manufacturer in India) cars, which have covered in excess of 40 million kilometres. In addition, VAFS partners Cummins, in India, in the production of gas systems for stationary engines. The MOU combines VAFS' alternative fuels capabilities and existing associations, with major OEM's based in India, with ACE's proven natural gas technology systems. The ACE/VAFS consortium will provide superior technology and high quality systems for the use of natural gas in heavy duty truck and bus engines and stationary power generation applications throughout India and other Asian countries. VAFS, on behalf of the ACE/VAFS consortium, has approached three major Indian based bus and truck OEM’s. The consortium offers the OEM proven natural gas engine development programs, technology and ongoing spare part supply and service. The initial task for the consortium is to identify the most appropriate OEM partner to work with. The intent is for OEM arrangements to be finalised by late March 2006 with an ACE/VAFS/OEM natural gas engine available in India by the end of 2006. This MOU enables ACE to work with an established alternative fuels partner in India. A market with similar potential to the China market. Through the MOU ACE benefits directly from the decision of the Indian High Court that all public transport and heavy duty trucks in certain cities, including Delhi and Mumbai, run on natural gas. For further
information please contact:
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