Quantum Technologies to Acquire Canadian Schneider

Quantum Fuel Systems Technologies Worldwide Inc. (NASDAQ:QTWW) ("Quantum" or the "Company") and Schneider Power Inc. (TSX VENTURE:SNE) ("Schneider Power") announced the signing of a definitive business combination agreement under which Quantum has agreed to acquire in a stock-for-stock exchange all of the outstanding common shares of Schneider Power.

The acquisition of Schneider Power will enhance Quantum’s strategic position as a fully integrated alternative energy company with technologies and capabilities to further the commercial use and adoption of alternative and renewable energies. The transaction will combine Schneider Power’s wind power and solar power generation development portfolio with Quantum’s world-leading alternative fuel technologies and solar power technologies to create a fully integrated renewable energy company. The combined companies’ portfolio will encompass products that enable energy efficient utilization in hybrid and electric vehicles to solar module manufacturing and clean electricity generation for North American consumers.

Quantum, through a wholly owned Canadian subsidiary, will acquire by way of Plan of Arrangement all the outstanding common shares of Schneider Power being approximately 71.0 million common shares, and Quantum will assume all of Schneider Power’s outstanding warrants. The purchase price payable by Quantum is 0.236 of a Quantum common share for each Schneider Power common share. As a result, upon closing of the transaction, Quantum will issue approximately 16.8 million common shares and reserve an additional 2.0 million common shares for issuance upon exercise of the assumed warrants.

Alan Niedzwiecki, President and CEO of Quantum, commented: "We believe this acquisition will further expand Quantum’s commitment to alternative energy and wind/solar farm development capability with expanded resources in terms of development and operation of renewable energy farms. We are excited about their shovel-ready power-generation projects in addition to their portfolio in excess of 1,000 MW of solar and wind energy electricity generation development projects located across two continents."

Lewis Reford, CEO of Schneider Power, said: "We are bullish about the future of Schneider Power and we are even more excited about the possibilities this combination brings to our business. This merger allows our shareholders to rapidly transition from a successful niche in small renewable energy project development to a dynamic and exciting diversified alternative energy platform while allowing Quantum investors to participate in the significant wind energy and solar project pipeline of the two companies moving forward. Through this transaction we will gain access to Quantum’s broad investor base and strong project partner relationships in the United States marketplace. For these reasons, Schneider Power’s Board supports this transaction which creates a new aggressive, growth focused alternative energy company."

Under the terms of the agreement announced today:

* Schneider Power shareholders will receive 0.236 of a Quantum common share per Schneider Power common share;
* On a pro forma basis, Quantum will be owned approximately 87% by current Quantum shareholders and 13% by current Schneider Power shareholders;
* The transaction values Schneider Power common shares at CDN $0.30, or approximately CDN $21 million (USD$19.9 million);
* Holders of at least 50% of Schneider Power common shares have agreed not to sell their Quantum common shares received at closing for a period of 6 months following the closing, except in certain permitted circumstances;
* Quantum will provide Schneider Power with a loan for up to $1 million to support Schneider Power’s applications for power purchase agreements under Ontario’s feed-in-tariff program;
* An individual nominated by Schneider Power will be appointed to fill a current vacancy on Quantum’s Board of Directors;
* The transaction was unanimously approved by the Boards of both companies, and holders of over 50% of Schneider Power’s outstanding common shares have signed voting Support Agreements whereby they have agreed to vote in favor of the transaction; and
* The transaction is to be completed by way of a court-approved plan of arrangement and will also require that a meeting of Schneider Power shareholders be held to approve the proposed plan.

Benefits to Quantum Shareholders

* Creates a more vertically- and horizontally-integrated alternative energy company with a seasoned project development skill set for both wind and solar power generation projects;
* Opens up the prospect of the in-house solar project development using Quantum’s high quality PV modules; and
* Provides for participation in cash flows from Schneider Power’s producing assets and projects with development agreements.

Benefits to Schneider Power Shareholders

* All-share transaction allows Schneider Power shareholders to continue to participate in the upside of a major wind and solar project pipeline;
* Provides for significant synergies in developing new projects in international markets using Quantum’s solar modules;
* Leverages Quantum’s highly experienced and well connected management team for project opportunities in the U.S. marketplace;
* Provides for participation in Quantum’s exciting new product breakthroughs in advanced propulsion systems, energy storage technologies and alternative fuel vehicles; and
* Provides for enhanced liquidity.

The transaction is subject to customary closing conditions including receipt of all necessary court, shareholder and regulatory approvals, including the approval of the TSX Venture Exchange and NASDAQ and approval by the holders of at least two-thirds of the common shares of Schneider Power. If all necessary approvals are obtained and the conditions contained in the agreement are satisfied, the transaction is expected to close in the second quarter of calendar 2010. The transaction is subject to termination if it does not close by June 30, 2010.

Quantum Fuel Systems Technologies Worldwide, Inc., a fully integrated alternative energy company, is a leader in the development and production of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles. Quantum’s portfolio of technologies includes advanced lithium-ion battery systems, electronic controls, hybrid electric drive systems, hydrogen storage and metering systems, and alternative fuel technologies that enable fuel efficient, low emission hybrid, plug-in hybrid electric, fuel cell, and alternative fuel vehicles. Quantum’s powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of hybrid and plug-in hybrid, hydrogen-powered hybrid, fuel cell, alternative fuel, and specialty vehicles, as well as modular, transportable hydrogen refueling stations. Quantum’s customer base includes automotive OEMs, dealer networks, fleets, aerospace industry, military and other government entities, and other strategic alliance partners.

More information can be found about Quantum’s products and services at  www.qtww.com.

Schneider Power Inc. is one of Canada’s premier renewable energy companies, with a portfolio in excess of 1,000 MW of clean electricity generation development projects and advanced exploration projects located across two continents, and large land positions on the most promising and prospective wind and solar power areas in North America and the Caribbean.

More information can be found about Schneider Power at www.schneiderpower.com.