News

# ISE and Encore Clean Energy to Build MPG Prototype Units

September 26, 2005 by Jeff Shepard

ISE Corp. (Poway, CA), a supplier of electric and hybrid-electric trucks, buses, drive systems, and components, announced that it has entered into a development and license agreement with Encore Clean Energy Inc. (Los Angeles, CA) to design and build prototype units of Encore's patent-pending Magnetic Piston Generator (MPG) technology for use in heavy-duty motor vehicles weighing over 8,500 lbs.

ISE President and CEO David Mazaika stated, "ISE is excited to be partnering with Encore in the development of the MPG technology. The MPG will essentially take waste heat from the engine in a hybrid drive system and convert it to useful electric energy. We believe co-generative processes such as the MPG have the potential to substantially improve the fuel economy of today's hybrid vehicles."

Encore CEO Dan Hunter commented, "We are extremely pleased to have a technology partner of the caliber of ISE to develop the MPG for the fast-growing hybrid vehicle market. Harnessing radiator and tailpipe exhaust heat of a gasoline or diesel engine, or the exhaust heat of a hydrogen fuel-cell, may be one of the most cost-effective ways by which car and truck makers worldwide can potentially increase vehicle driving range, lower engine emissions and reduce consumption of, and demand for, imported oil and gasoline. Harnessing such waste heat is the first step in our plan to develop gasoline, diesel and/or hydrogen combustion versions of the MPG to directly generate electricity more efficiently than conventional diesel and internal combustion engine/generator systems."

In consideration of Encore funding and ISE developing the MPG for heavy-duty, hybrid vehicle applications, ISE will receive an exclusive territorial license to make, use, and sell MPGs in the United States and Canada in the field of use of heavy-duty motor vehicles. Encore will retain ownership of the exclusive right to sub-license the MPG in all other territories around the world and in all other fields of use, including, but not limited to, next-generation motor vehicles (hybrid passenger cars and light trucks) and high-efficiency, distributed-energy-generating facilities (converting the free fuel of solar thermal, geothermal, power plant turbine exhaust, combustion engine exhaust, and industrial waste heat energies into new sources of clean and usable power).

The initial phase of ISE's development effort is estimated to cost over $260,000 and result in ISE building and testing a compressed air-driven prototype MPG system that produces electricity. Encore will pay for this effort in two installments of$100,000, each payable within the next 60 and 120 days, respectively, and the final installment for the first-phase effort within the next 180 days. If the parties agree that the first phase has been successful, then ISE will proceed with the second phase of the development, which is expected to result in ISE building and testing a closed-loop, waste-heat-driven prototype MPG system that produces electricity for hybrid vehicle applications. Encore will also fund this second phase, currently estimated to require an investment of over \$600,000.