Enova Systems and IC Bus Execute Long Term Agreement (hybrid school buses)

http://www.foxbusiness.com/story/markets/industries/industrials/enova-systems-ic-bus-execute-long-term-agreement/

TORRANCE, Calif., May 19, 2008 (BUSINESS WIRE) ----Enova Systems, (AMEX:ENA) (AIM:ENV) (AIM:ENVS), a production company in an emerging industry and a leading developer of proprietary electric, hybrid and fuel cell digital power management systems, announced today that it has entered into a Long Term Supply Agreement with IC Bus, a wholly owned affiliate of Navistar, Inc. and the nation's largest school bus manufacturer. The Supply Agreement guarantees that Enova's proprietary Post Transmission Parallel Hybrid Electric drive system will be used in IC Bus' hybrid school buses. IC Bus has forecast significant market penetration of its hybrid buses in the U.S., Canada and Mexico, the countries included in the terms of the Agreement. Additionally, IC Bus and Enova are working closely to evaluate the hybrid bus market in India. The Agreement is valued, for Enova, in excess of $120M through the 2010 calendar year.

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The hybrid school bus looks the same as a standard bus, however it is powered with new technology. The technologies were extensively evaluated at the Navistar research and technology facility in Fort Wayne, Ind. Enova's innovative technologies have shown fuel economy improvements in excess of 70%, and emissions reductions between 20% and 40% depending on specific load and operating conditions.

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Enova's Charge Sustaining System utilizes relatively small batteries which are maintained within a specified range of state of charge (SOC ) over the entire drive cycle. Battery charge is maintained by the on-board equipment and is not normally recharged from the grid except as needed for cell balancing. The Charge Depleting (or "Plug In") System utilizes a larger battery based on advanced battery chemistry that provides stored energy intended to be drawn down over the driving cycle and re-charged overnight to optimize fuel efficiency.

"Hybrid buses provide two distinct advantages," said John McKinney, Vice President and General Manager of IC Corporation. "With its reduced fuel use and emissions, it is environmentally friendly. Secondly, a significant increase in fuel efficiency can dramatically improve the bottom line of many businesses."

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