Contact Information: Contacts: Chuck Coppa CFO Lyle Jensen CEO GreenMan Technologies 781-224-2411 www.greenman.biz Investor Relations Contacts: John Nesbett Jennifer Belodeau Institutional Marketing Services (IMS) 203-972-9200
GreenMan Technologies Signs Exclusive Worldwide License Agreement for a Patented Alternative Fuel Technology for Diesel Engines
| Source: GreenMan Technologies, Inc.
CARLISLE, IA--(Marketwire - June 22, 2009) - GreenMan Technologies, Inc. (OTCBB : GMTI )
today announced the signing of an exclusive license agreement with American
Power Group, Inc. ("APG"), an Iowa corporation for the worldwide
commercialization of APG's patented dual fuel alternative energy
technology.
APG's dual fuel alternative energy system is a unique external fuel
delivery 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 compressed natural gas ("CNG"); 2) diesel fuel
and bio-methane, or 3) 100% on diesel fuel depending on the circumstances.
The proprietary technology seamlessly displaces up to 70% of the normal
diesel fuel consumption with CNG or bio-methane and the energized fuel
balance between the two fuels is maintained with a patented control system
ensuring the engines operate to Original Equipment Manufacturers' ("OEM")
specified temperatures and pressures with no loss of horsepower.
Installation requires no engine modification unlike the more expensive
high-pressure alternative fuel systems in the market. Additional dual fuel
system combinations are under development and will also be covered by this
License Agreement.
APG's fuel technology upgrade is ideally suited for the large domestic and
international installed base of both stationary and vehicular diesel
engines estimated to be in the millions in both the U.S. and
internationally. The stationary market includes primary and backup diesel
power generation for hospitals, critical care facilities, cold storage
warehouses, data centers, financial centers and exchanges and government
facilities, while vehicular applications include school buses, public
transit, refuse haulers, commercial route fleets, government vehicles, and
short-haul trains. Over 1,000 APG systems are already in operation in
North and South America, Africa, India and Pakistan.
Lyle Jensen, GreenMan's Chief Executive Officer stated, "This patented
technology will be a key anchor business unit to our overall investment
strategy and officially launches GreenMan's commitment to selective
leadership positions in renewable fuel and alternative energy. APG
understands that mastering the science of combustion was a key factor in
their emerging market leadership position. They have spent years
performing thermodynamic engine modeling and are the only firm that uses a
Computational Fluid Dynamics Program on each engine to scientifically
determine the optimum mixture of diesel fuel and CNG or bio-methane for
peak performance."
Jensen further stated, "The benefits of this dual fuel alternative energy
technology are a perfect match for many of the stimulus programs under the
American Recovery and Reinvestment Act. By displacing up to 70% of the
diesel fuel consumption, APG's patented alternative energy system provides
a proven solution towards the goal of significantly reducing the United
States' dependence on foreign oil and provides a net fuel savings to
operators around the world. With abundant, lower cost domestic natural gas
and rising diesel prices, we see the ability to significantly reduce an
operator's fuel costs with one of the cleanest fuels available and reduce
NOX and particulate matter emissions by 40% while protecting the integrity
of an engine's internal components to be a great selling point. We will
emphasize to the local, state and federal agencies that this dual fuel
alternative energy system is 'shovel ready' and competitive on a world
footprint to create jobs in America. We are awed by the size of this
multi-billion dollar addressed market and look forward to creating
substantial shareholder value in the years to come."
The initial technology license fee was paid with the issuance of two
million shares of GreenMan common stock subject to a one year lock-up and
certain escrow provisions. Additionally, customary royalty payments and
sub-license fees will apply.
Conference Call
Please join us today, June, 22, 2009 at 2:00 PM Eastern Time for a
conference call in which we will discuss the APG Dual Fuel License
agreement. To participate, please call 1-877-856-1956 and ask for the
GreenMan call using passcode 1392943. A replay of the conference call can
be accessed until 11:50 PM on July 22, 2009 by calling 1-888-203-1112 and
entering pass code 1392943.
About GreenMan Technologies
GreenMan Technologies, through its subsidiaries, provides technological
processes and unique marketing programs for renewable fuel, alternative
energy, recycled feedstock, and innovative recycled products. Through the
company's Green Tech Products subsidiary, the company develops and markets
branded products and services that provide schools and other political
subdivisions viable solutions for safety, compliance, and accessibility.
The Company's Renewable Fuels and Alternative Energy subsidiary pursues
opportunities to commercialize and grow green-based technologies and in
June 2009 signed an exclusive worldwide license agreement to
fully-commercialize their patented dual fuel alternative energy system
technology.
"Safe Harbor" Statement: Under the Private Securities Litigation Reform Act
With the exception of the historical information contained in this news
release, the matters described herein contain "forward-looking" statements
that involve risks and uncertainties that may individually or collectively
impact the matters herein described, including but not limited to the facts
that we have sold the tire recycling operations which have historically
generated substantially all our revenue and that we will be prohibited from
competing in that business on a regional basis until 2013, the risk that we
may not be able to increase the revenue of our Welch division, the risks
that we may not be able to identify and acquire complementary businesses
and that we may not be able successfully to integrate any such acquisitions
with our current businesses, the risk that we may not be able to return to
sustained profitability, the risk that we may not be able to secure
additional funding necessary to grow our business, on acceptable terms or
at all, the risk that, if we have to sell securities in order to obtain
financing, the rights of our current stockholders may be adversely
affected, and the risks of possible adverse effects of economic,
governmental, seasonal and/or other factors outside the control of the
Company, which are detailed from time to time in the Company's SEC reports,
including the Annual Report on Form 10-KSB for the fiscal period ended
September 30, 2008. The Company disclaims any intent or obligation to
update these "forward-looking" statements.