American Power Group Receives Order for New Fracturing Rig Customer

LYNNFIELD, MA--(Marketwired - Jun 3, 2014) - American Power Group Corporation (OTCQB: APGI) announced their subsidiary, American Power Group Inc. ("APG"), has received an order valued between $400,000 to $500,000 to upgrade and convert twelve high pressure diesel engines used for hydraulic fracturing to APG's S3000 Dual Fuel Turbocharged Natural Gas® system for a new fracturing rig customer operating in the Eagle Ford shale region of Texas. SourceOne Engine Equipment, LLC, one of APG's domestic Dealer/Certified Installers booked the order and we expect the units to be shipped during the June 2014 quarter. While the end customer and the exact value of the order was not disclosed for proprietary reasons, we believe the customer is among the top hydraulic fracturing and pressure pumping oil and gas service companies in the United States.

The Railroad Commission of Texas reports the Eagle Ford shale region is approximately 50 miles wide and 400 miles long running from South Texas into East Texas. The first drilled site occurred in 2008, and since then, the Eagle Ford shale region is reported to be one of the most active shale plays in the world with over 220 operating rigs. The shale region produces both oil and gas from various depths ranging from 4,000 ft. to 12,000 ft. The Railroad Commission reports several of the major operators in the Eagle Ford include Anadarko, Apache, Atlas, EOG, Lewis Petro, Geo Southern, Petrohawk, Pioneer, SM Energy and XTO. Of these operators, half have converted varying numbers of their oil and gas diesel engines to APG's S3000 Dual Fuel Turbocharged Natural Gas® system throughout North America.

Lyle Jensen, American Power Group Corporation's Chief Executive Officer, stated, "We are pleased APG was awarded this order after being base-lined against other dual fuel competitors for up-time, product availability, EPA-emission compliance, and overall performance. During 2014, we have won business and have begun to establish ourselves in two of the newest and most active oil & gas regions in the world -- the Bakken Region in North Dakota with over 180 active rigs and now the Eagle Ford shale region in south Texas with over 220 active rigs. Both regions are predicting decades of oil and gas production recovery providing long-term growth opportunities for our company."

Mr. Jensen added, "This order caps a great month of May where we saw record vehicular dual fuel conversion orders from our WheelTime Network members for 40 systems from new customers, new regions (Oklahoma and Pennsylvania) as well as several multi-unit follow on orders."

About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas® conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 75% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.

Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, the fact that our dual fuel conversion business has lost money in the last five consecutive fiscal years, the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, the fact that we have preferred stock outstanding with substantial preferences over our common stock, the fact that the conversion of the preferred stock and the exercise of stock options and warrants will cause dilution to our shareholders, the fact that we incur substantial costs to operate as a public reporting company and other factors that are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2013 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.