Quantum Enters into $2.63 Million Development Agreement for Production Intent
Innovative Natural Gas Storage and Fuel System Development
Development Agreement Provides for Follow-On Exclusive Supply Relationship
LAKE FOREST, Calif., May 2, 2013
LAKE FOREST, Calif., May 2, 2013 /PRNewswire/ --Quantum Fuel Systems
Technologies Worldwide, Inc. (NASDAQ:QTWW), a global leader in natural gas
storage systems, integration and vehicle system technologies, today announced
that it recently entered into a Master Development Agreement ("Agreement")
with ZHRO™ Solutions, LLC ("ZHRO"), based in Chandler, Arizona, to develop
fully-integrated compressed natural gas storage and fuel delivery systems (the
"Fuel System") for robust and cost-effective aftermarket conversion of medium
and heavy duty diesel fleets to run on natural gas. Under this Agreement,
which provided for an advanced payment of $1.0 million to Quantum to initiate
activities under a compressed timeline, Quantum will engineer and develop fuel
delivery modules and integrate Quantum's industry-leading high capacity
ultra-lightweight Q-Lite™ natural gas vehicle storage systems with ZHRO's
revolutionary natural gas injection/engine conversion system.
The intent of this Agreement is to develop the Fuel System in an expedited
manner and, subject to certain conditions set forth in the Agreement, for
Quantum to become ZHRO's exclusive production supplier of the fuel system
components which include Quantum's CNG storage tanks along with other fuel
ZHRO has developed an innovative financial and marketing model to accelerate
the commercial launch of their breakthrough technology and has already
contracted with a significant number of North American distributor's for sales
and installation of ZHRO's fuel injector/engine conversion system.
"We are excited to partner with ZHRO Solution's enthusiastic and creative
management team and pleased to offer our most advanced storage systems to form
a winning combination with ZHRO Solution's breakthrough fuel injection
technology and innovative financial and marketing models," said Brian Olson,
President and CEO of Quantum. "We believe our partnership with ZHRO could be a
game changer for accelerating adoption of natural gas systems by aftermarket
"Conditions are right for a large number of high mileage fleets to soon begin
converting to natural gas, as innovative refueling solutions and validated
high performance conversion kits become available, and financing and servicing
infrastructure are put into place," said John Madrigal, COO of ZHRO Solutions.
"Quantum's range-enhancing natural gas storage system is a perfect complement
to ZHRO's planned innovative high pressure natural gas injection system."
Under this strategic development program, Quantum and ZHRO will develop a
cost-effective, complete natural gas aftermarket system solution for the
nation's estimated 4 million medium and heavy duty trucks currently running on
expensive diesel fuel, enabling fleet operators to benefit from lower
operating costs and reduction in exhaust particulate matter and emissions,
made possible by a dedicated conversion to natural gas from diesel.
Quantum Fuel Systems Technologies Worldwide, Inc. is a leader in the
innovation, development and production of natural gas fuel storage systems and
the integration of vehicle system technologies including engine and vehicle
control systems and drivetrains. Quantum produces one of the most innovative,
advanced, and light-weight compressed natural gas storage tanks in the world
and supplies these tanks, in addition to fully-integrated natural gas storage
systems, to truck and automotive OEMs and aftermarket and OEM truck
integrators. Quantum provides low emission and fast-to-market solutions to
support the integration and production of natural gas fuel and storage
systems, hybrid, fuel cell, and specialty vehicles, as well as modular,
transportable hydrogen refueling stations. Quantum is headquartered in Lake
Forest, California, and has operations and affiliations in the United States,
Canada, and India.
ZHRO Solutions, LLC is an innovative Clean-Tech company headquartered in
Chandler, AZ that is focused on developing and commercializing proprietary
advanced technology for use in the conversion of heavy duty diesel trucks to
Forward Looking Statements:
This press release contains forward looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements included
in this report, other than those that are historical, are forward-looking
statements and can generally be identified by words such as "may," "could,"
"will," "should," "assume," "expect," "anticipate," "plan," "intend,"
"believe," "predict," "estimate," "forecast," "outlook," "potential," or
"continue," or the negative of these terms, and other comparable
terminology.Various risks and other factors could cause actual results, and
actual events that occur, to differ materially from those contemplated by the
forward looking statements.Risk factors include the successful completion and
development of the CNG fuel system by Quantum, the successful validation and
commercialization of injection systems by ZHRO, market acceptance of the
developed CNG fuel system and the continued cost-effectiveness of natural gas
fuel. The Company undertakes no obligation to update the information in this
press release to reflect events or circumstances after the date hereof or to
reflect the occurrence of anticipated or unanticipated events.
More information about the products and services of Quantum can be found at
http://www.qtww.com/ or you may contact:
Brion D. Tanous
CleanTech IR, Inc.
©2013 Quantum Fuel Systems Technologies Worldwide, Inc.
Advanced Technology Center, 25242 Arctic Ocean Drive, Lake Forest, CA 92630
Phone 949-399-4500 Fax 949-399-4600
SOURCE Quantum Fuel Systems Technologies Worldwide, Inc.
Press spacebar to pause and continue. Press esc to stop.