American Power Group Receives Approval for an Additional Twenty-Nine OUL Vehicular Engine Family Applications

LYNNFIELD, MA--(Marketwire - Sep 19, 2012) - American Power Group Corporation (OTCQB: APGI), announced today that its subsidiary, American Power Group, Inc. ("APG"), has received online notification from the U.S. Environmental Protection Agency ("EPA") that its recent Clean Alternative Fuel Vehicle and Engine Conversion Submission has been approved for the following Outside Useful Life ("OUL") engines:

• Cummins ISX (2006 - 2002)
• Cummins ISM (2006 - 2002)
• Detroit Diesel MBE 4000 (2006 - 2004)

The submission utilized APG's latest V5000 Dual Fuel Turbocharged Natural Gas™ technology which is required to meet specific design, componentry, and emission compliance criteria per the EPA Final Rule 40CFR Parts 85 and 86. 

Lyle Jensen, American Power Group Corporation's President and Chief Executive Officer, stated, "This approval marks another important performance milestone as we expand our approved vehicular product offerings to include the popular Cummins ISX and ISM engine families. Since May 2012, we have achieved eighty-eight EPA OUL engine family approvals and have received purchase orders for twelve initial vehicular conversions totaling over $120,000 from six different customers. APG is now operating in eight states and is expanding its authorized dealer and certified installer networks nationwide. We are seeing a noticeable increase in early-adopter fleets matching up their natural gas fill-station infrastructure requirements to utilize APG's aftermarket user technology."

Mr. Jensen added, "Our goal is to complete emissions testing on all remaining high-profile OUL engine families by the end of the calendar year which would open up an estimated domestic multi-billion dollar OUL addressable market of 500,000 vehicles. This will allow us to then focus all our efforts on obtaining approvals for our targeted Intermediate Age ("IUL") engine families which represents an estimated additional 400,000 potential vehicles for dual fuel conversion. We are scheduled to begin formal IUL testing in early-October with a goal of securing our first EPA IUL approval by the end of the calendar year and completing the testing for up to fifteen engine families during the course of the next twelve months."

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 aftermarket 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 80% 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.

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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, results of future operations, difficulties or delays in developing or introducing new products and keeping them on the market, the results of future research, lack of product demand and market acceptance for current and future products, adverse events, product changes, the effect of economic conditions, the impact of competitive products and pricing, governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the results of litigation, factors affecting the Company's future income and resulting ability to utilize its NOLs, and/or other factors, which 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, 2011 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.