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Past ASX Release
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25 October 2005 FIRST AUTO WORKS INITIAL ORDERS FAW have ordered their first production Advanced Engine Components Ltd ("AEC") Natural Gas Vehicle System kits for the FAW 7.2 litre natural gas ("NG") engine. The FAW 7.2 litre NG engine has completed the necessary reliability and vehicle testing processes required for export. Of the initial twenty kits ordered, ten engines are for export to Bangladesh with the remaining ten engines for use in China. FAW also advised that the 6.6 litre NG engine has successfully completed approximately 30% of the 1500 hour reliability tests. FAW is well advanced in building two, 6.6 litre, NG powered buses for the 30,000 kilometre road trials. FAW expect a high demand for the 6.6 litre NG engine. In preparation for this demand, FAW have requested AEC be in a position to supply AEC NGVS kits, for the 6.6 litre FAW NG engine, from the start of the 2006 calendar year. The quantity of kits required by FAW represents initial revenue of approximately A$500,000 per month to AEC. The third NG engine, being developed under the FAW/AEC co-operation agreement, completed the European Steady State ("ESC") exhaust emission procedure on 19 October 2005. These 3.2 litre FAW/AEC NG engines will be produced by FAW's wholly owned subsidiary Dalian Diesel in Northern China. AEC has been working with FAW, China's largest vehicle manufacturer, to jointly design, develop, test and certify FAW NG engines, incorporating AEC's NGVS components, since November 2003. Both FAW and AEC have been very pleased with the success of the program and agree that the price of oil, environmental concerns and the high economic growth in the Asian region have created an ideal market for the FAW/AEC NG engines. Revenue from sales of NGVS kits to FAW will complement the sales revenue generated by the Australian sales of NGVS components to Motive Energy Pty Ltd (refer ASX announcement of 19 September 2005). For further
information please contact:
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