American Power Group and Collicutt Energy Services Work Together to Meet CSA Inspection and Acceptance Safety Criteria for Dual Fuel Installation in Canada

$200,000 of Orders Received for Two Leading Drilling and Well Service Company Sites

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LYNNFIELD, MA--(Marketwired - Sep 18, 2013) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG") has received purchase orders totaling approximately $200,000 from Collicutt Energy Services, its stationary authorized dealer and certified installer in Alberta and Western Canada. The orders are for the conversion of drilling rigs for two of the leading drilling and well service providers in Alberta. In conjunction with these orders, APG worked with Collicutt to have APG's Turbocharged Natural Gas™ System become the first dual fuel solution to obtain the Canadian Standards Association ("CSA") Inspection and Acceptance approval for operating on an oil and gas rig in Canada. 

Collicutt Energy Services is a leading service provider in North America, and headquartered in Red Deer, Alberta, Canada with over 30 years of experience in the power generation and gas compression industry. Through its locations in Alberta, British Columbia, California, Nevada, Alaska, and Hawaii, Collicutt provides design and engineering services, field sales and support, large equipment overhaul and refurbishment and parts inventory for the power generation and gas compression industries.

Darryl Schmidt, Vice President of Operations for Collicutt Energy Services, stated, "We worked closely with the Alberta Municipal Affairs (Gas Codes Division) to ensure our conversions are in compliance with the new Safety Codes Act, making these dual fuel conversions the first within the Province to comply with these more stringent safety requirements. The APG dual fuel solution provides our customers with a significant competitive advantage in a very competitive, bottom-line driven industry. Several oil and gas drilling and service company clients are estimating a potential annual net fuel savings of over $1.0 million dollars per drilling rig using APG's Turbocharged Natural Gas™ Dual Fuel Upgrade System. We look forward to increasing our market share with compliance to these new safety requirements."

Lyle Jensen, CEO of American Power Group, stated, "We are pleased to see continued traction in the Canadian region with new customers that are leaders in the oil and gas drilling services market. We have only seen the tip of the iceberg considering the number of diesel engines that are candidates for APG's dual fuel upgrade in this region. In addition to differentiating APG with favorable emissions results, APG will be the first known dual fuel system to obtain the CSA Inspection and Acceptance sticker in the oil & gas industry. Similar to Underwriters Lab ("UL") approval in the United States, the CSA Inspection and Acceptance mark shows that a product has met CSA's recognized standards for safety and performance. This recognition is another great example of the robustness and reliability of our APG system."

About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas™ conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 80% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.

Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, results of future operations, difficulties or delays in developing or introducing new products and keeping them on the market, the results of future research, lack of product demand and market acceptance for current and future products, adverse events, product changes, the effect of economic conditions, the impact of competitive products and pricing, governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the results of litigation, factors affecting the Company's future income and resulting ability to utilize its NOLs, and/or other factors, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2012 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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