Frost & Sullivan Acknowledges e-Traction Europe's Significant Efforts to Promote Green Technology Through its Unique Electric Corner Module Product Design

LONDON, February 26, 2010 - Based on its recent analysis of the automotive business strategy market,
Frost & Sullivan recognises e-Traction Europe B.V. with the '2010 European
Automotive Technology Innovation Green Excellence Award'. e-Traction Europe's
Electric Corner Module (ECM) solutions, operating at more than 85 percent
efficiency and delivering up to 15,000 Nm of direct drive traction, have been
implemented in numerous prototype buses, most recently the 'Whisper series'
in the city of Apeldoorn, the Netherlands.

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e-Traction Europe's ECM technology results in a combination of some very
impressive advantages: a 50% decrease in CO2 emissions, a 50% decrease in
energy use and a very significant noise reduction. e-Traction Europe is much
further in putting its breakthrough technology on the road than generally
realised because as a small company, e-Traction used its limited resources on
improving the technology rather than on publicity or exhibitions.

Today e-Traction's ECM solution is put to the most rigorous test possible
for a new invention in the automotive industry: the large international
transport company, Veolia, has integrated Whisper buses in its fleet of Volvo
buses to serve passengers in the city of Apeldoorn on a daily basis, with
very promising results.

e-Traction Europe introduced its first ECM solution, TheWheel SM500/2FE,
in 2004. In 2007, the company added four more ECM direct-drive systems to its
product line. These included TheWheel SM500/3FEXL, designed for industrial
and monorail applications; TheWheel SM500/3FE, which is 50 percent more
powerful than the SM500/2 system for a wider range of applications; TheWheel
SM450/1AL, a direct-drive system designed with specific focus on integration
in passenger vehicles; and SM350/2AL, a non-wheel hub direct-drive product
line integrated into the Whisper-3G series of buses as generator set.

TheWheel solution, which was created by integrating the ECM concept, is
highly innovative and flexible. Its modular architecture is designed for easy
integration with conventional or hybrid vehicles, making its adaptation
flexibility an additional interesting selling point.

Another significant advantage of e-Traction's solutions is that TheWheel
drives the buses without any gearing, since the tire is mounted directly to
the exterior of the direct drive motor.

"The embedded and external hardware and software in TheWheel system
eliminates the need for a mechanical differential to equalise the forces
experienced by each wheel under heavy steering input, due to 2 ECM integrated
into the rear axles," says Frost & Sullivan Research Analyst, Niranjan
Thiyagarajan. "This reduces the number of mechanical components required as
the traction control and anti-lock braking systems are integrated into the
electronic management system (EMS)."

Frost & Sullivan forecasts a 5 to 10 percent reduction in weight of an
automobile (depending on the number of in-wheel motors) if manufacturers can
do away with components such as cardan shafts, differentials, and
transmissions. e-Traction believes that by 2020, ECM will be the best
propulsion system solution in terms of total cost of ownership, with an
expected penetration rate of 2 to 3 percent of the total vehicle production
and a higher adoption rate among original equipment manufacturers (OEMs).

e-Traction has entered into its first partnership with an automotive
manufacturer to design its ECM systems specifically for the passenger car
market. Automotive manufacturers' takeaway from this symbiotic relationship
is ECM's ability to help them meet emission targets and regulations and
combine a fully electrically powered car with a long range distance
capability.

"With high reduction in emission levels and automotive components as well
as proactive marketing and continuous technology and product innovation,
e-Traction has enhanced its position in this emerging market with a product
development lead time of over three to five years when compared to its
competitors," observes Thiyagarajan. "This, coupled with its involvement in
retrofitting commercial vehicles in the Netherlands and South Korea, gives it
a definite head start in the automotive business strategy market."

Each year, Frost & Sullivan presents this award to the company that has
demonstrated superior technological advancement, which is aligned with a
sustainable and environmentally conscious objective within its industry
sector. This award signifies the company's identification of a unique and
revolutionary solution with significant environmental benefits, while
presenting tremendous market potential simultaneously. Moreover, the award
also signifies that the company's overall business strategy is sound and
poised for success.

Frost & Sullivan Best Practices Awards recognise companies in a variety
of regional and global markets for demonstrating outstanding achievement and
superior performance in areas such as leadership, technological innovation,
customer service, and strategic product development. Industry analysts
compare market participants and measure performance through in-depth
interviews, analysis, and extensive secondary research in order to identify
best practices in the industry.

About e-Traction Europe B.V.

e-Traction Europe B.V. based in Apeldoorn, specializes in developing and
engineering prototypes of vehicles ranging from buses or cars to all kind of
specialized equipment with complex electrical components. e-Traction Europe
developed the Electric Corner module initially to remedy performance
shortfalls in the electric motors and their gearboxes used in an
Automatically Guided Vehicle (AGV) project that the company was working on
for the Amsterdam Airport. This state-of-the-art motor solution was
thereafter patented and later branded as TheWheel. Based on the patents a new
challenge was taken on: the design of an ultra-efficient city bus featuring
TheWheel as traction component. After several prototypes the 'e-Traction Bus'
with code name X97 has evolved into a viable technology and independent tests
(by TNO Automotive) have shown fuel consumption to be just under 15 mpg and
with less than half the CO2 emissions of other existing commercial buses.
City busses, equipped with TheWheel, are now in actual service in the city of
Apeldoorn and will be soon in Rotterdam. e-Traction Europe is currently
designing more types of TheWheel to further improve the fuel consumption of
buses, SUVs, monorails and passenger cars.

    e-Traction Europe B.V. Contact:
    Vissenstraat 36
    7324 AL Apeldoorn
    The Netherlands
    Phone:    +31(0)55-521-1111
    Fax:      +31(0)55-55222366
    Website:  www.e-traction.nl
    e-mail    AJ.Heinen@e-Traction.nl

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    Frost & Sullivan Contact Information
    Jasmine Malone
    Phone: +44-207-915-7869
    E-Mail:jasmine.malone@frost.com

Jasmine Malone of Frost & Sullivan, +44-207-915-7869, jasmine.malone at frost.com; or e-Traction Europe B.V., +31(0)55-521-1111, Fax, +31(0)55-55222366, AJ.Heinen at e-Traction.nl