Alternative Fuel Systems Inc.

Investors

Alternative Fuel Systems Inc.  (“AFS”) provides international customers with systems and components used primarily in vehicles operating on compressed natural gas (“CNG”). Vehicles that run on this fuel generate significantly less harmful emissions than vehicles using diesel fuel or gasoline.   As more and more attention is paid to global warming and greenhouse gases, the number of vehicles that can use cleaner burning fuel should continue to grow strongly.

Most of the Company’s sales are in Europe and Asia, through distributors and agents in those markets.  In Europe, the CNG infrastructure is considerably advanced, so that drivers are able to refuel in many different locations.  As a result, CNG buses and cars are becoming more common, with a number of automakers providing such vehicles.  In Asia, and in India particularly, the governments are enacting laws and regulations to reduce air pollution.  One of the primary changes has been restrictions on the use of diesel vehicles in the country’s major cities.  CNG trucks and buses are a natural solution to these initiatives.

Common shares of AFS are listed on the Toronto Stock Exchange Venture exchange, trading under the symbol “AFX”.