[NeilBlanchard]

From an email from FVT:

First, let me apologize for the delay in getting this information out. The past few days have been a bit tough so it has taken a while to put pen to paper. For many this news will come as a disappointment but for FVT elimination was always a potential reality. Of course that doesn't change the fact that we are a bit bummed out!

Because FVT developed so many technologies from scratch, having just one of those components fail during the competition was always a distinct possibility. Sending the eVaro out on the track required about 50 "little miracles" all to fly in formation at the same time... and when they did the results were spectacular. Watching the eVaro race around Michigan International Speedway at 60 mph silently and averaging way over our previous best of 165mpge was confirmation that this technology works and that it truly will change the automotive world. Unfortunately, because FVT's technologies have not had years of testing to work out the kinks, one small hiccup caught us off-guard and knocked us out.

The X Prize competition came to an end for FVT during the emissions test late Monday evening. It was FVT's custom gas generator (range extender) that gave us trouble and unfortunately there was no quick solution. We submitted an appeal but we were informed Tuesday morning that it was denied. How ironic that an electric car gets eliminated because of emissions! Every team in the race were acutely aware that if even one small part failed on their car the race could potentially end for them. So in a strange twist of fate one of the most efficient vehicles in the race would be eliminated for failing emissions.

The kicker was that although FVT submitted the original plan (which included a gas range extender) to the X Prize more than a year ago, the eVaro had become so efficient that it no longer needed the range extender to compete. Unfortunately X Prize rules did not allow changes part way through so without passing emissions we could not continue on.

We understand the judge's decision and have high respect and admiration for the X Prize crew that ran the competition. The X Prize allowed us to meet devoted, passionate, talented teams from all over the world who shared our commitment for improving the automobile and the environment. It was a once in a lifetime experience we will never forget and we wish all those continuing on the very best of luck.

The eVaro performed well the first week and FVT was very pleased to find out that (excluding penalties) we were the 3rd highest mpge of all the vehicles in the competition - ahead of heavily funded Aptera and behind the very talented Li-ion Motors and an enclosed motorcycle design from Switzerland called X-Tracer. With FVT's small team and limited budget this was a remarkable achievement. Even more remarkable was that we were the only team in to create a complete drive train from the ground up. With teams sourcing commercial drive systems from all over the world this is a testament to FVT's ability to design and build advanced drive systems.

The X Prize was never the destination for FVT- it was only a stop on the journey towards creating new technologies, a new kind of car and a new kind of car company. It was a way for FVT to get a message out that electric cars not only work, but that they are viable today and we are one of the best in the world at making them work.

This is a bold statement, but we have now had a chance to see cars and technologies from around the world in a competition of the best-of-the-best. More than ever before we are confident that FVT has the technology, capability, and tenacity to compete with any and all who enter this market - and apparently we are not the only ones who believe this.

While in Michigan we were approached by a major automotive manufacturer to discuss production of the eVaro. Although talks are very preliminary, this is exactly what FVT has been trying to achieve through the X Prize. FVT's design and intimate understanding of electric vehicles matched with a specialist in automotive mass production would be a powerful combination. We will keep you posted as talks continue.

The road ahead is going to be very, very exciting.

Sincerely,

Todd and the FVT boys