2006

Release:         Immediate
Contact:          Colleen Ryan, NYSERDA, (518) 862-1090, ext. 3359
                        Brian Warner, NYPA, (914) 390-818

New York State Purchases Hybrid-Electric School Buses

Albany, New York (September 29, 2006) - The New York State Energy Research and Development Authority (NYSERDA) and the New York Power Authority (NYPA) will purchase two hybrid-electric school buses through a multi-state Hybrid-Electric School Bus Purchasing Consortium.

The consortium is a group of school districts, state energy agencies and student transportation providers from around the United States (New York, Pennsylvania, Virginia, North Carolina, South Carolina, Florida, Texas, Oregon, Arkansas, Washington and Iowa) dedicated to the commercialization of hybrid-electric school buses. The group seeks to encourage major school bus manufacturers to address the market demand for more energy-efficient, cleaner buses that use hybrid technology. Advanced Energy, a Raleigh, N.C.-based nonprofit corporation, initiated the consortium.

"Nearly 50,000 school buses operate in New York State, carrying 2.3 million children to school every day", said Peter R. Smith, President and CEO of NYSERDA. "It is essential that we look for ways to make those buses as clean and efficient as possible With funds provided from Governor George Pataki's Clean Air/Clean Water Bond Act, NYSERDA has enabled some 2,500 school buses from 84 school districts to be retrofitted with emission control technology, and has supported purchase of new natural gas buses which use 100% alternative-fuels. The introduction of hybrid-electric technology for school buses is a great step and we are pleased to play a role in bringing these buses to New York State."

"Under the leadership of Governor George Pataki, New York State has moved aggressively to reduce school bus emissions by enabling local school districts to purchase emissions reduction technologies.  The Power Authority has played its part through the installation of diesel oxidations catalysts on 1,426 buses in New York City. Earlier we rolled out two battery-powered electric school buses, now in use in Westchester and Rockland Counties. We consider introduction of the hybrid-electric school bus essential to improved air quality for our children and all New Yorkers," said Timothy S. Carey, NYPA's president and chief executive officer.

IC Corporation, the nation's largest school bus manufacturer, won a bid issued by the consortium to provide 19 hybrid-electric buses to the 11 participating states. NYPA and NYSERDA have committed funds to bring two of these buses to the Empire State. The buses will be owned by NYPA, but made available for demonstration by various school districts throughout the state.

The New York Association for Pupil Transportation and the New York School Bus Contractors Association, two industry associations, are committed to working with NYPA and NYSERDA to support the statewide demonstration of these hybrid buses with school bus operators.

James Minihan, President of the New York Association for Pupil Transportation (Transportation Supervisor, Kathonah-Lewisboro School District) said, "This is clearly an exciting time for the school transportation industry with developments like the hybrid school bus that will change the way we do business.   NYAPT appreciates the opportunity to be a part of this project.  We look forward to working with NYSERDA, the Power Authority and the IC Corporation in ways that will involve our schools, our school bus drivers, our technicians, and the students who ride our school buses each day."

The hybrid buses will be equipped with Enova Systems' post-transmission 80-kilowatt hybrid drive system. The powertrain will include International^® VT365 V8 diesel engines and the 80-kilowatt hybrid-electric powertrains, incorporating a transmission, batteries, and an electric motor. The system will utilize both diesel and electric power in a highly efficient manner.

About IC Corporation

IC Corporation, the nation's largest integrated school bus manufacturer, is a wholly owned subsidiary of International Truck and Engine Corporation. International produces school bus chassis, mid-range diesel engines, medium trucks, heavy trucks, severe service vehicles, and is a provider of parts and service sold under the International brand. Both IC and International are subsidiaries of Navistar International Corporation (NYSE: NAV).  Additional information is available on their website at: www.ic-corp.com.

About Enova Systems, Inc.

Enova Systems is a leading supplier of efficient, environmentally friendly digital power components and systems products. The company's core competencies are focused on the development and commercialization of power management and conversion systems for mobile and stationary applications. Enova applies unique 'enabling technologies' in the areas of alternative energy propulsion systems for medium and heavy-duty vehicles as well as power conditioning and management systems for distributed generation systems. The company develops, designs and produces drive systems and related components for electric, hybrid-electric, and fuel cell powered vehicles. For further information, contact Enova Systems directly, or visit its Web site at www.enovasystems.com.

About Advanced Energy

Advanced Energy is a Raleigh-based nonprofit corporation that enables utility customers to improve returns on their energy investments. The corporation also strives to create environmental, economic and societal benefits through innovative and market-based approaches to energy. The Hybrid Electric School Bus Project represents a collaborative effort among many parties to improve the nation's air quality. The project has demonstrated that industry, government and non-profits can successfully work together to improve the environment and encourage the economy.