Environmental Services — September 28, 2009

Alternative Fuel Systems announces additional project for Tata Motors

CALGARY, Sept. 28 /CNW/ - Alternative Fuel Systems (2004) Inc. ("AFS" or the "Company") (TSX Venture: AFX) announced today that it has been selected by Tata Motors for a project involving the compressed natural gas ("CNG") fuelled version of the recently announced "Xenon XT" extended cab pickup truck. Tata Motors is one of India's largest manufacturers of motor vehicles. AFS President and CEO Jim Perry stated that "A Xenon XT provided by Tata Motors (Thailand) Ltd. equipped with an AFS engine control system has now arrived in Calgary. We are in the process of licensing the vehicle for testing on Canadian roads. The objective of our project is to refine the Xenon engine control system to provide optimal drivability and performance under a wide spectrum of operating conditions. It is very important to vehicle buyers that the pickup has a smooth and powerful feel in real world driving. The only way to properly assure this elevated level of performance is through testing on a production vehicle."

Mr. Perry added that "We now have four different Tata Motors vehicles in Calgary, most of which are representative of vehicles in production in India or surrounding countries. Each of them represents a separate opportunity for growth in our business when their geographic distribution and sales volumes expand as is anticipated. In countries such as India and Thailand, the price of CNG is considerably lower than that of gasoline or diesel, so there are significant economic advantages to purchasers of natural gas fuelled vehicles. According to published reports, India has one of the most rapidly growing fleets of eco-friendly CNG vehicles in the world. We believe that we are well positioned to participate in this exciting and quickly accelerating marketplace".

Forward-looking statements

Certain statements in this news release including but not limited to (i) statements that may contain words such as "anticipate", "could", "expect", "seek", "may", "might", "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which the Company operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by the Company. Forward-looking statements in this news release specifically include, but are not limited to, statements with respect to future business opportunities, nature and timing thereof; business strategy; expansion and growth of the Company's business and operations and other such matters as the case may be. Such forward-looking statements are subject to important risks, uncertainties and assumptions which are difficult to predict and that may affect the Company's operations, including, but not limited to: the impact of general economic conditions; industry conditions; customer base changes; financial market conditions; government and regulatory developments; oil and natural gas product supply, demand and pricing; foreign exchange rates; competition; market conditions in the countries where the Company operates; and the Company's ability to attract and retain qualified personnel. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits or disadvantage the Company may derive therefrom. Except as required by applicable securities laws, the Company undertakes no intention or obligation to update or revise any forward-looking statements.

All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Company's current financial statements and other documents that the Company files from time to time with securities regulatory authorities. Copies of these documents are available without charge from the Company or electronically on the internet on the Company's SEDAR profile at www.sedar.com.

%SEDAR: 00020995E

For further information: Jim Perry, President and CEO, Phone: (403) 516-6632, E-mail jperry@afsglobal.com; Visit our website at: www.afsglobal.com

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