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Collaboration Achieves First California Certified Heavy-Duty Hybrid System

SAN DIEGO, CA, November 15, 2003 — The Siemens-ISE-Ford team is pleased to announce that its heavy duty gasoline hybrid system has achieved California Air Resources Board certification. The Siemens-ISE-Ford system represents the first and currently only heavy-duty hybrid system certified for sale in transit buses in California.In addition, the gasoline hybrid is officially categorized as an "alternative fuel" system, thereby qualifying for sale to transit properties that have elected to follow the alternative fuel route for emissions compliance.

The ThunderVolt gasoline hybrid system was certified to 0.4g/hp-hr NOx, 0.0g PM, and 3.7g CO, making it the lowest emission drive system of any type for 40-foot buses. Replacing a diesel bus by one of these advanced systems has the same emissions effect as removing more than 200 cars from the road. If the roughly 5,000 transit uses in the LA/Orange County area were replaced with drive systems of this type, emissions would be reduced by approximately 15,000 tons per year.

The advanced gasoline hybrid system combines the proven Siemens ELFA electric drive system with the Ford ULEV rated V10 engine, integrated and controlled by the ISE ThunderCan hybrid control system. The Siemens ELFA drive system has been integrated in hundreds of buses and has achieved more than 40 million transit miles, rendering it the most proven heavy duty electric drive system in the world. Ford's 6.8L V10 engine was selected due to its inherent low emission levels, light weight, and excellent performance. ISE incorporates the Siemens drive system, Ford engine, electric accessories (braking, steering, and air conditioning), cooling systems and a new energy storage system consisting of either Zebra batteries or an ISE/Maxwell ultracapacitor pack, and the company's proprietary control system into a complete hybrid drive system assembly. This is sold as a kit to major bus and truck OEMs.

Original funding for the gasoline hybrid system was provided by the US DOT/FTA, the State of California, WestStart-CALSTART, Omnitrans, and ISE. "This hybrid system is a showcase of technical innovation and market understanding," noted John Boesel, president and CEO of WestStart-CALSTART. "The end result is a 40-foot bus nearly as clean as a late model SUV, with essentially no harmful particulate emissions, while also providing better fuel economy. This is a huge step forward in the intelligent transition to clean heavy-duty vehicles. In addition, both Omnitrans-- the San Bernardino transit organization which operated the first two prototype buses-- and bus manufacturer New Flyer provided valuable input to make the system more user friendly and serviceable.The first volume order for the new system was placed by Long Beach Transit earlier this year for firm orders and options of more than 100 buses. "We are excited to have such visionary transit agencies such as Omnitrans and Long Beach Transit as our first customers," said David Mazaika, president of ISE. "For the first time in more than 70 years, this new hybrid system offers transit properties the simplicity of a 40-foot bus drive system that operates on pump grade gasoline," said Mazaika.

Headquartered in the Atlanta suburb of Alpharetta, Ga., Siemens Energy & Automation, Inc., manufactures and markets one of the world's broadest ranges of electrical and electronic products, systems and services to industrial and construction market customers. Its technologies range from circuit protection and energy management systems to process control, industrial software and totally integrated automation solutions. The company also has expertise in systems integration, technical services and turnkey industrial systems. For more information: www.sea.siemens.com.

ISE, based in San Diego, is a privately-held firm specializing in development of heavy-duty hybrid drive systems for buses, trucks, trams, airport equipment, and specialized military vehicles. The company has extensive experience in electric, hybrid-electric, and fuel cell vehicles. ISE is the US distributor for the Siemens ELFA® electric/hybrid drive system.

Ford Motor Company, headquartered in Dearborn, Michigan, is the world's second largest automaker, with approximately 335,000 employees in 200 markets on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit, Quality Care and Hertz. Ford Motor Company observed its 100th anniversary on June 16, 2003.

For more information on the gasoline hybrid drive, please contact Mr. Tom Bartley, ISE Director of Marketing at phone/fax (619) 287-8785/8795 or visit the company's Web site at www.isecorp.com.

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