Achieves 37,000 DOEM Systems Installations           Improves Gross Margins 200 Basis Point Vs. Prior Year                      Increases 2009 Annual Guidance 

SANTA ANA, Calif., Aug. 6, 2009 (GLOBE NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) reported results for its second quarter ended June 30, 2009.

Mariano Costamagna, Fuel Systems' CEO, said, "Our quarterly results demonstrate we are successfully executing our plan to be a leader in alternative fuel systems and complementary services for transportation and industrial vehicles. Our expanded delayed original equipment manufacturer (DOEM) capacity delivered record quarterly systems installations of 37,000 and our business is on track to exceed 120,000 conversions in 2009, more than doubling the nearly 58,000 conversions in 2008. Demand for alternative fuel vehicles is strong in Europe and will undoubtedly return worldwide as global markets improve. As such, during the quarter, we raised $30 million to continue to invest in opportunities in existing and adjacent businesses like our Teleflex Power Systems, Distribuidora Shopping S.A., and FuelMaker Corporation asset acquisitions and global automotive expansions."

    Recent Operational Highlights   * Reached 37,000 DOEM conversions in the second quarter 2009, up from    30,000 conversions in the first quarter 2009.  * Completed the acquisition of Teleflex Power Systems for    $14.5 million in August.    -- Two of Teleflex's Power Systems' three lines of business       complement the global transportation and industrial businesses.       The technology and testing equipment augment Fuel Systems'       existing capabilities and the patents and certifications further       build upon the company's intellectual property portfolio.    -- The third business, anti-idling auxiliary power units (APUs),       expands the product line with solutions that generate power for       parked heavy-duty class-8 trucks and diesel locomotives.  * Purchased compressed natural gas (CNG) refueling products,    including the home appliance Phill(tm), for $7.0 million from    FuelMaker Corporation in May, expanding Fuel Systems' ability to    serve consumers, small-to-medium fleets and commercial fleets.  * Acquired the remaining minority interest of WMTM joint venture in    Brazil further streamlining its corporate structure, and maximizing    operating flexibility.  * Enhanced U.S. Automotive fleet strategy for liquid propane gas (LPG)    and CNG vehicles by signing a non-exclusive distribution agreement    with privately-held, CleanFUEL USA, to market and sell Fuel    Systems' kits in the U.S. market. 

Matthew Beale, Fuel Systems' President, CFO and Secretary, said, "Our DOEM business performed better than expected, which partially offset the impact of the global recession on our transportation aftermarket and industrial business. In fact, if the Euro to U.S. Dollar exchange rate had remained constant, our quarterly revenue would have been up slightly compared to last year. More notably, our DOEM business has achieved a critical mass that made an important contribution to the improvement of gross margins. These results combined with our acquisitions have driven us to increase annual revenue guidance to between $370 million to $380 million."

    Recent Corporate Highlights  * Completed $30 million registered direct common stock offering for    general corporate purposes and to help fund its growth strategy.  * Appointed Mike Helfand, Senior Vice President Finance and Chief    Accounting Officer, and named Matthew Beale Chief Financial Officer    in addition to President and Secretary.  * Announced corporate headquarters' relocation to New York City to    increase efficiencies managing global operations. 

Financial Results

Revenue for the second quarter of 2009 was $92.3 million, compared to $98.3 million in the second quarter of 2008. The decrease in revenues was due to negative foreign exchange impact of approximately $10.2 million, or 10%. The increase in transportation DOEM revenue offset the lower demand in the industrial market. Gross profit for the second quarter 2009 was $28.6 million, or 31% of revenue, compared to $28.6 million, or 29% of revenue, a year ago, reflecting the operating efficiencies achieved by reaching a critical mass. Operating income for the second quarter of 2009 totaled $12.5 million, or 14% of revenue, compared to $10.2 million, or 10% of revenue, in the second quarter of 2008. Net income for the second quarter 2009 was $7.4 million, or $0.46 per diluted share, compared to $4.6 million, $0.29 per diluted share, which included a non-cash goodwill impairment charge of $3.9 million, in the second quarter of 2008.

For the six-month period ending June 30, 2009, total revenues were $172.4 million, compared to $192.9 million for the first half of 2008. Net income for the first half of 2009 was $14.5 million, or $0.90 per diluted share, compared to $10.8 million, including the impairment charge of $3.9 million, or $0.69 per diluted share, for the first half of 2008.

Company Outlook

Based on the current market outlook, margin improvements and acquisitions, the company expects 2009 revenue to be between $370 million and $380 million. The company is targeting 2009 gross margin between 28% and 30% and 2009 operating margin to be between 11% and 13%.

Conference Call

The company will host a conference call on August 7th at 8:00 a.m. Pacific Time / 11:00 a.m. Eastern Time to discuss its second quarter 2009 financial results. To listen to the call live, please dial 877-356-8063 at least 10 minutes before the start of the conference. International participants may dial 706-679-2544. The pass code for the conference call will be 18966890. The call is also being webcast and can be accessed from the "Investor Relations" section of the company's website at www.fuelsystemssolutions.com. A telephone replay will be available until midnight ET on August 21st by dialing 800-642-1687 or 706-645-9291 and entering pass code 18966890#. A replay will also be available at the web address above for 90 days.

Forward-Looking Statements

This press release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, expressed or implied statements concerning the company's sales and its ability to achieve 2009 revenue between $370 million and $380 million with gross profit margin between 28 percent and 30 percent and operating margin between 11 percent and 13 percent, as well as the success of products and the success and integration of recent acquisitions. Such statements represent only our opinions and predictions. The Company's actual results may differ materially. Factors that may cause the Company's results to differ include, but are not limited to, risks that we cannot integrate the acquired assets into our business promptly and efficiently, that the patents or certifications acquired are insufficient or not useable by us, that expected sales do not materialize, that changes in emissions regulations may not significantly increase demand for the Company's products, the global economic downturn may reduce customers' demand for new automobiles and/or our products, and that all closing conditions will be met, original equipment automobile manufacturers do not adopt the Company's fuel systems as expected, that expected sales not based on long-term contracts will materialize, that changes in emissions regulations will not significantly impact demand for the Company's products, that a global economic downturn may reduce customers' demand for our products, that reduction in oil prices will reduce the demand for our products and that currency fluctuations will reduce our revenue or financial condition.