CALGARY, Aug. 10 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or the "Company") (TSX Venture: AFX) announced today that together with Indian partner Advantek Fuel Systems Pvt. Ltd. ("Advantek"), it is working with Bajaj Auto Limited ("Bajaj") on a development project involving the compressed natural gas ("CNG") fuelled version of a three-wheeled commercial delivery vehicle. Bajaj Auto is ranked as the world's fourth largest two- and three-wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia.

AFS President and CEO Jim Perry stated that "Bajaj has sent a prototype vehicle to AFS in Calgary for testing. This vehicle is designed for use within major cities in India, where air pollution is a very serious problem. By running on CNG using latest generation AFS technology, these goods carriers are expected to produce significantly less harmful emissions while offering better performance and fuel efficiency."

Mr. Perry added that "Meeting performance, emissions and cost requirements is going to take a significant increase in the sophistication of the engine control equipment used on the smaller and more numerous vehicles. AFS and Advantek have already demonstrated that we have the technology and the expertise to address these issues. We are pleased to be working with Bajaj on this exciting new project."

Source: ALTERNATIVE FUEL SYSTEMS (2004) INC. | Alternative Fuel Systems announces project for India's Bajaj Auto Limited