UPDATE: Power Solutions International Acquires Bi-Phase Technologies; Terms Not Disclosed

Power Solutions International, Inc.

, the global alternative-fuel engine company, today announced that it acquired the electronic fuel-injection system manufacturer Bi-Phase Technologies LLC. Bi-Phase has been a privately held subsidiary of The Schwan Food Company, a national food manufacturer and marketer. Based in Eagan, Minnesota, Bi-Phase Technologies designs and manufactures electronic fuel-injection systems that enable gasoline engines to be fueled by liquid propane. After developing a successful liquid propane fuel-injection prototype in 1994, Bi-Phase was purchased by Schwan in 1999 so the company could use the technology on its fleet of propane-powered home-delivery trucks. Approximately 70 percent of Schwan's Home Service fleet of 4,500 delivery trucks runs on liquid propane using Bi-Phase systems. Bi-Phase's patented dedicated multi-port systems enable propane to be injected in a liquid state, which eliminates the need for a troublesome vaporizer or regulator, improves cold start performance and reduces backfires. Bi-Phase systems have achieved US EPA and CARB on-highway certification for several popular engines, including the General Motors 6.0-liter and PSI's 8.8-liter. "Bi-Phase makes a market-leading propane system that is a key component in our propane engines. With our manufacturing and supply chain knowledge, we see a unique opportunity to integrate Bi-Phase systems into many more products," said Gary Winemaster, PSI's Chairman and Chief Executive Officer. "Notably, Bi-Phase is an approved supplier to GM for light- and medium-duty van and truck applications. We expect this acquisition to further strengthen our partnership with GM, since we can apply this technology to a wider range of applications." PSI currently uses the Bi-Phase fuel-injection system on the recently launched Navistar IC CE Series propane school bus, a new Alkane truck, and the Capacity TJ5000 LP terminal tractor. The recent acquisition of Powertrain Integration provides additional fuel system options, which will further strengthen the company offerings and opportunities. According to Schwan officials, the company is selling Bi-Phase as part of a strategy to focus on its core food businesses, brands and services. "We strongly believe that the propane conversion systems produced by Bi-Phase are the best on the market today," said Dimitrios Smyrnios, CEO of The Schwan Food Company. "Ultimately, we know that PSI will have the expertise to bring new levels of success for Bi-Phase's alternative fuel systems." As a part of the agreement, PSI will continue to provide Schwan's fleet with Bi-Phase systems.