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Post-Acquisition Update: Quantum Fuel Systems Achieves Zero-Debt Balance Sheet and Enhanced Customer Focus Under Direction from Douglas Acquisitions, LLC

Oct 17, 2016

LAKE FOREST, CA (October 13, 2016) — Since the acquisition of Quantum Fuel Systems LLC earlier this year by Douglas Acquisitions, LLC, a new management team has controlled costs, realigned future expectations and achieved a zero-debt balance sheet. The team in charge at Quantum, an industry leader in CNG (compressed natural gas) fuel systems for the automotive and heavy-duty
industry, has also taken proactive measures by adding in-field service technicians complementing the existing service organization based at corporate headquarters in Southern California.

Since 2012, Quantum has grown rapidly, earning a 40%+ market share for over-the-road CNG heavy duty vehicles in North America. This was accomplished through a portfolio of CNG storage system products that includes Q-Cab™ back- of-cab storage modules and Q-Rail™ storage modules on heavy-duty trucks. In the latter half of 2016, Quantum has brought to market high capacity trailers that easily and safely transport gaseous fuels, both domestically and globally. For example, the higher capacity Q-VP650 is configured with a trailer where exceeding 80,000 lbs. is permitted. Conversely, where lighter loads are required, the Q-VPLITE maximizes capacity at less than 80,000 lbs. of total weight.

As a company now wholly owned by Douglas Acquisitions, LLC (a $1 billion private equity firm based in Northern California) Quantum is augmenting its operations for high volume manufacturing of virtual pipeline trailers, heavy-duty CNG truck modules and single tank sales. “2016 will be looked on as a turning point for the company,” said Steve Toelke, a company spokesperson. “The new ownership has committed to this space and accelerated growth as oil prices increase.”

With a growing customer base, Quantum has now expanded its service presence throughout the US. There are now 110 service locations that provide service and warranty activity for customer fleets. Throughout this expansion, Quantum’s internal service organization has increased its efficiency by providing same-day response and when required, overnight shipment of parts to customer locations. In the near future, Quantum will provide in-house training for service centers and partners, with system level troubleshooting methods and maintenance of fuel systems. Complementing the internal service organization will be in-field service technicians that work closely with customers to address issues that occur in the field.

About Quantum Fuel Systems LLC
Quantum Fuel Systems LLC is engineering the future of CNG storage by designing, developing and bringing innovative gas transport trailers and heavy duty truck fuel storage systems to the market. Quantum is at the forefront of the industry with decades of experience in gaseous fuel storage and
systems solutions. Learn more at www.qtww.com.

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Media Contact: Michael Beightol
Coyote Marsh & Associates, Inc.
mbeightol@coyotemarsh.com
847.277.7353