XP Vehicles Extremely Disappointed in DOE Rejection of ATVM Application

SAN FRANCISCO, Aug. 27 /PRNewswire/ -- XP Vehicles, Inc., a California-based
electric car company, was notified last night by the U.S. Department of Energy
that their Advanced Technology Vehicles Manufacturing (ATVM) loan program
application had been rejected. "This is extremely frustrating as we submitted
this application almost ten months ago and not once did DOE ask any of our
engineers, the founder or our project leads for additional or clarifying
information," asserted Scott Redmond, the company's chairman. "What is even
more frustrating is that one of the main reasons they gave us for the
rejection was the fact that our vehicles do not use E85 gasoline and that we
are not making millions of cars. The primary purpose of this loan program, we
were told by its authors, was to develop advanced technology and further
reduce our dependence on gasoline," added Redmond. The XP Vehicles car uses no
gasoline and gets over 125 miles per battery charge.

What XP vehicles submitted to DOE:
-- Fortune 500-class extremely comprehensive 10 year detailed financials.
-- Metrics that demonstrated that the XP car can save millions of lives
annually.
-- Metrics that demonstrate that a gasoline/hybrid vehicle is dangerously
carcinogenic when filled at a gas station compared to an XP Vehicle.
-- Engineering and IP metrics that beat every competitor on price, range,
safety, TOC, efficiency, toxic safety and hundreds of other points.
-- Examples of work from $3M of cash and person-hours previously invested
by founders, DOE & partners.
-- Lists of top auto and aerospace corporate partners, staff and
resources,
on stand-by, equaling thousands of people in all groups combined.
-- Validation of a deep team of core staff that have been developing the
project and parts of the project for 3-15 years.
-- Samples of extensive international positive press coverage.
-- Proof that XP was the lowest overhead car company in the market which
equates to the best chance to profit and return funds.
-- Market and marketing studies.

-- CAD designs and engineering plans.

It is well known that DOE funding cannot be surpassed in terms by any current
bank or investor in this economy. That is why XP Vehicles and several other
advanced technology electric car companies were the first to apply for these
loans; the major car companies were not. However, the rules were changed
midway through the process to allow these late entrants. Now XP Vehicles has
learned that almost all the federal money is going to "Detroit" companies or
companies closely aligned with Detroit.

"While we have absolutely no problem with funding going to our traditional
automotive industry," Redmond admitted. "We cannot believe that no funding
will be given to small, advanced technology companies trying to move our
nation even further from our dependence on oil. After all, isn't that what
President Obama intended with his energy independence program and support for
high technology companies?" questioned Redmond.

XP Vehicles has asked its many thousands of supporters and interested
stakeholders to contact their legislators to ask for help with DOE. "While we
have no idea whether the Department will respond to congressional inquiries,
we just have no other options left in obtaining some financial help from the
federal government," stated Janet Kopenhaver, Washington Lobbyist for XP
Vehicles. "We had put a grassroots letter-writing campaign on hold because we
were getting assurances from DOE that everything was in order with our
application, but circumstances now leave us no choice but to move ahead,"
added Kopenhaver.

About XP Vehicles, Inc.
In development by Clever Industries LLC for nearly a dozen years, with
millions of dollars in resources already invested, spin-out XP Vehicles, Inc.,
is on a mission is to develop the safest, most affordable vehicle with the
lowest total cost of operation (TCO) and the best power-to-weight ratio
powered by alternative energy. The battery pack is capable of delivering
around 125 miles per charge with four passengers. However, it could reach 300
miles with the continuous charge of an optional XP Auxiliary Power Unit. For
more information on XP Vehicles, please visit www.myxpcar.com.

SOURCE XP Vehicles, Inc.

Paul Andrews, +1-510-868-2862, Ext. 3, contact@myxpcar.com