IMPORTANT FACTORS REGARDING FORWARD-LOOKING STATEMENTS
The following factors, among others, could cause actual results to differ materially from those contained in
forward-looking statements made in this Report and presented elsewhere by management from time to time.
Reference is also made to the "Risk Factors" described in the Company's Prospectus dated February 1, 1996.
COMPANY'S PARTICIPATION IN FIELD TEST
While the Company had originally anticipated the Field Test to expand to a total of 64 vehicles for the Deutsche
Post during 1996 (20 Mercedes-Benz vans and 44 GM-Opel light pick-up trucks), at recent meetings the
Company has discussed with certain Field Test partners modifications of the Field Test program. For 1997,
Deutsche Post proposes to modify the Field Test program to include 20 Mercedes-Benz MB410 vans (of which
10 have been delivered), 20 new Mercedes-Benz Vito vans (a newly designed 2.6 ton van which Mercedes-
Benz plans to convert to an electric drivetrain), and five GM-Opel Corsa Combo pickup trucks for the Field Test
(none of which have been delivered). The number of additional Opels that will be requested or delivered to the
Field Test is currently uncertain as the Deutsche Post is proposing to use the Vito vans instead of the Opel trucks.
The Company and Deutsche Post are currently discussing potential modifications to the Field Test and an
expanded relationship with Deutsche Post for continued development and commercialization of the Electric Fuel
System. There can be no assurance, however, that any agreement will be reached with the Deutsche Post, or that
if no such agreement is reached, the Field Test will continue.
The Company believes that acceptance of the Electric Fuel System by Deutsche Post AG ("Deutsche Post") as a
powering system for its fleet is a key factor with respect to the Company's efforts to commercialize the Electric
Fuel System. As a result, the Company has made and will continue to make a significant investment in the Field