NEW HYDRAULIC TECHNOLOGY BY PERMO-DRIVE PROMISES MAJOR FUEL ECONOMY GAINS

CHATTANOOGA, TN -- A new hybrid" hydraulic technology for commercial vehicles promises fuel economy improvements of up to 40 percent for both new and used vehicles, according to Paul Chandler, vice president of North American operations for Permo-Drive Technologies Ltd.

For Immediate Release

   
NEW HYDRAULIC TECHNOLOGY BY PERMO-DRIVE PROMISES MAJOR FUEL ECONOMY GAINS

   CHATTANOOGA, TN -- A new hybrid" hydraulic technology for commercial vehicles promises fuel economy improvements of up to 40 percent for both new and used vehicles, according to Paul Chandler, vice president of North American operations for Permo-Drive Technologies Ltd.

   Chandler said that based on prototype testing in Australia and the United States, Permo-Drives regenerative braking and propulsion system for all classes of commercial vehicles can significantly increase brake life, improve fuel economy, and reduce hydrocarbon and particulate emissions.

   Speaking at the Hybrid Electric Truck Users Forum at the Chattanooga Choo Choo Holiday Inn recently, he noted that in addition to new-vehicle applications, Permo-Drives Regenerative Drive System (RDS) can easily be installed on existing vehicle fleets to achieve major and immediate improvements in fuel economy.
   
   RDS technology captures previously unused energy generated by a vehicles braking system and releases it back into the driveline as power is needed.

Chandler said that major features of the Permo-Drive system include:
·   An innovative, regenerative" driveshaft design,
·   Energy accumulators utilizing composite materials,
·   Ultra-light weight metals, and
·   Advanced hydraulic engineering.

The Permo-Drive executive said the company will begin testing of the system in major North American vehicle fleets in 2003 and plans to make the technology available commercially in 2004.

RDS technology represents a remarkable integration of vehicle dynamics, advanced hydraulics, mechanical engineering, accumulator technology, material science, computer telemetry and electronics," Chandler noted. The resulting system literally has the potential to save fleet owners billions of dollars in fuel and maintenance costs, while reducing hydrocarbon and particulate emissions at the same time."

Established by the U. S. Armys National Automotive Center and WestStart-CALSTART, the Hybrid Electric Truck Users Forum is designed to expand the market for heavy-duty hybrid vehicles and provide an opportunity for military and commercial fleet operators to identify and address mutual needs and concerns. The U. S. Army operates a fleet of nearly 250,000 vehicles and is working to transform the fleet to a lighter, more mobile and more fuel-efficient force. WestStart is a non-profit organization that has managed more than $150 million in advanced technology programs to foster fuel efficiency and reduce emissions.

Major fleet operators represented at the Chattanooga conference in addition to the U.S. Army included Federal Express, Ryder Transportation Systems, United Parcel Service, the U. S. Postal Service and the U. S. Air Force.

Permo-Drive Technologies Ltd. is an Australian-based company focused on the development of regenerative energy management systems. More information about the company is available on the Internet at www.permo-drive.com.

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Company Contact                  Media Contact

Paul Chandler                     Larry Weis
Permo-Drive Ltd.                  AutoCom Associates
Phone: 734.944.7279                  Phone: 248.647.8621
E-Mail: paul.chandler@comcast.net            E-mail: lweis@usautocom.com
URL: www.permo-drive.com               URL: www.usautocom.co