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Police Specialty Vehicles Press Release

March 22, 2010

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Carbon Motors Partners with BMW Group

Homeland Security Company Selects World-Class Diesel Powertrain

Reaffirms Commitment to Reduce Fuel Consumption in Nation’s Most Visible Fleet

WASHINGTON, DC — Carbon Motors Corporation and BMW Group today jointly announced a strategic partnership in a joint press conference held outside of the 2010 Government and Security/U.S. Law Conference and Exposition. BMW will supply Carbon Motors with advanced clean diesel engines, complete with cooling and exhaust gas systems, and automatic transmissions for the Carbon E7, the world’s first purpose-built law enforcement patrol vehicle – designed by law enforcement, exclusively for law enforcement.

“America’s largest, and most visible fleets of government-owned vehicles, now in excess of 450,000 units, deserve the most durable, efficient and reliable powertrain available,” said William Santana Li, chairman and chief executive officer, Carbon Motors Corporation. “The strength of BMW as a partner will allow us to provide our women and men in uniform with a diesel engine capable of the performance they desire along with the significant reduction in fuel consumption and emissions that U.S. taxpayers need.”

It is estimated that the U.S. law enforcement fleet consumes an estimated 1.5 billion gallons of gasoline and emits an estimated 14 million tons of CO2 annually; the Carbon E7 will cut that by up to 40% using clean diesel technology. Clean diesel is the technically correct solution for law enforcement operations due to its inherent performance, safety, operational, fuel efficiency, and durability characteristics.

“We are delighted to support Carbon Motors Corporation with our engine expertise,” said Ian Robertson, member of the Board of Management of BMW AG. “BMW Group diesel engines have a clear lead over the competition when it comes to fuel consumption, emissions and performance. Today’s agreement with Carbon Motors marks an important milestone in BMW’s 35-year commitment to the United States market.”

Also in attendance at today’s announcement were U.S. Senator Richard Lugar (R-IN) and Indiana's Secretary of Commerce E Mitchell Roob, Jr. “Carbon Motors has exhibited relentless and unwavering determination in its efforts to put Hoosiers back to work,” commented Sen. Lugar. “Today’s announcement brings us one step closer to proving that America is back and is turning Indiana into the Silicon Valley of the auto industry.”

About The BMW Group
With its three brands -- BMW, MINI and Rolls-Royce – the BMW Group (FRANKFURT:BMW) is one of the world’s most successful premium manufacturers of cars and motorcycles. It operates internationally with 24 production sites in 13 countries and a global sales network with representation in more than 140 countries. Directly employing over 7,000 Americans in the United States with over 50,000 indirect jobs, The BMW Group has a 25-year commitment to maintaining and enhancing its presence in the U.S. Learn more at www.bmwgroup.com.

About Carbon Motors Corporation
Carbon Motors Corporation is a bold homeland security company on a critical mission to design, develop, manufacture, distribute, service, and recycle, the world’s first purpose-built law enforcement patrol vehicle. Learn more at www.carbonmotors.com.