Enova Systems and Hyundai Motor Co. Partner on Production Hybrid Vehicle

31 March 2000

Enova Systems and Hyundai Motor Co. Partner on Production Hybrid Vehicle

    TORRANCE, Calif.--March 30, 2000--Enova Systems (OTCBB:ECAR) announced it has entered into a contract with Hyundai Motor Co. of Korea, the world's seventh-largest automobile manufacturer, to design and develop a new parallel-hybrid system for its production vehicles.
    This contract follows the successful completion of a development program between the companies that resulted in a parallel-hybrid system for Hyundai's hybrid-electric concept car, displayed at the 1999 Seoul Auto Show.
    This new contract should enable Enova Systems to showcase its design and development expertise in electric motor controls, energy management, DC-DC power conversion and high-voltage safety systems. The parallel-hybrid drive system will consist of an electric motor, internal combustion engine and a continuously variable transmission working in concert to supply primary propulsion power.
    The electric motor, battery and controller will be utilized during heavy acceleration when high torque demands exceed the capability of the internal combustion engine, enabling optimal low torque highway and cruise driving.
    "We believe the award of this contract by Hyundai provides recognition of the technical excellence of our engineering team," said Carl D. Perry, president and chief executive officer.
    "Our ongoing partnership with Hyundai Motor Co., which we are very proud of, continues to enhance our company's ability to expand our product base for potential customers not only in the United States, but throughout the world. The development of this hybrid system should allow our company to penetrate emerging global markets for hybrid vehicles."
    The parallel-hybrid drive system will be ideal for day-to-day commuter driving and is the promising approach to achieve fuel economy and lower emissions. Hybrid drive systems, unlike battery-powered electric drive systems, do not require periodic recharging or a charging infrastructure.
    Prior to this contract, Enova Systems also developed a series-hybrid drive system for medium- and heavy-duty delivery and transit vehicle applications for Hyundai.

    This news release contains forward-looking statements relating to Enova Systems and its products. These forward-looking statements are subject to and qualified by certain risks and uncertainties. Such statements do not imply the future success of the company or its products. These risks and uncertainties are detailed from time to time in Enova Systems' filings with the Securities and Exchange Commission under the name U.S. Electricar Inc.