American Power Group Receives $900,000 Order From Leading International Oil and Gas Drilling Service Company for Conversion of Hydraulic Fracturing Pumps to Dual Fuel Operation

LYNNFIELD, MA--(Marketwire - Mar 12, 2013) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG"), has received a $900,000 purchase order from one of the top 5 oilfield and drilling service companies in the world, to upgrade and convert diesel pumps used for hydraulic fracturing to APG's Turbocharged Natural Gas™ Dual Fuel System. APG will provide a turnkey solution inclusive of certified installer training which will enable the customer to install subsequent conversions. APG expects the units to be converted and operational during the second calendar quarter. The end customer was not disclosed for proprietary reasons.

Lyle Jensen, CEO of American Power Group, stated, "We are pleased that, following extensive factory and field testing, APG's innovative Turbocharged Natural Gas™ System has once again been selected for its safety, reliability, and environmental efficiency by another world class oilfield and drilling service company. APG's user-friendly dual fuel system provides an oil and gas service contractor the maximum flexibility to utilize either pipeline gas, qualified well-head gas, liquefied natural gas (LNG), or compressed natural gas (CNG) to displace a large percentage of diesel fuel and realize a significant net fuel savings and lower emissions. Our oil and gas drilling customers have been experiencing paybacks ranging from three months (well-head gas) to nine months (liquefied natural gas), making our dual fuel solution one of the most compelling competitive decisions they can make. At a time when global diesel prices continue to escalate, the ability for operators to utilize our dual fuel technology with inexpensive, clean-burning, and plentiful domestic natural gas provides a significant competitive advantage for those that adopt an APG dual fuel operation. This is the second major order APG has received for dual fuel hydraulic fracturing in the past ninety days and we expect an accelerating adoption of our technology for both stationary and vehicular applications during 2013."

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.

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