SOURCE: Progressive Automotive X PRIZE

October 30, 2008 14:20 ET

Cave Junction, OR-Based Kinetic Vehicles Announces Status as Registered Team in the Progressive Insurance Automotive X PRIZE

Progressive Automotive X PRIZE Welcomes One of First Registered Teams in Multimillion Dollar Competition to Develop 100 MPGe Vehicles

CAVE JUNCTION, OR--(Marketwire - October 30, 2008) - Kinetic Vehicles today announced its acceptance into the multimillion dollar Progressive Insurance Automotive X PRIZE, a competition designed to inspire a new generation of viable, super fuel-efficient vehicles to offer more consumer choices.

Kinetic Vehicles was among the first to submit its registration application, an important step towards ensuring that it is at the starting line when the cross country stage race competition kicks off next year. Final confirmation of Kinetic Vehicles' Registered Team status is pending their signature of a Master Team Agreement upon its release later this year.

"Our application passed the first round of scrutiny for a plausible business plan, as well as a plausible vehicle," said Kinetic's president, Jack McCornack.

Kinetic Vehicles claims to have a prototype competition car already getting better than 70 miles per gallon, and plans to reach the 100 mile per gallon goal by spring.

"The vehicle can already speak for itself," he said, referring to the car's recent win in Escape from Berkeley, the high mileage alternate fuel rally from Berkeley to Vegas.

To date, more than 120 teams from 28 states and 17 countries have signed letters of intent to compete for their share of the $10 million prize purse, funded by Progressive, which will be awarded to those that can design and build production-capable, 100 MPGe (miles per gallon energy equivalent) vehicles that people will want to buy and that meet market needs for price, size, capability, safety and performance.

With registration now officially open, many of those 100+ teams are actively working on their applications to become official competitors of the Progressive Automotive X PRIZE. Those who pass this first round of qualification, as Kinetic Vehicles now has, will move into the next phase of competition, which includes a dramatic cross country stage race set to begin next September.

"We congratulate Kinetic Vehicles on its continued commitment to developing super fuel efficient vehicles," noted Don Foley, Executive Director of the Progressive Automotive X PRIZE. "While there's still much to be accomplished before reaching that starting line in New York City, we're pleased to see that they have taken this important step in the process."

Once registration closes at the end of this year, and the field of competition is in place, qualified competitors will begin preparing for a rigorous cross country stage race that will combine speed, distance, urban driving and overall performance. The race is set to kick off in New York City in September 2009, and will continue in up to nine other cities throughout the U.S. Winners will be announced in 2010.

About Kinetic Vehicles:

Based in the historic Smokejumper Base at Illinois Valley Airport south of Cave Junction, Kinetic Vehicles provides specialized components and services for film special effects departments as well as for automobile homebuilders. For more information about Kinetic Vehicles, please visit www.kineticvehicles.com or email jack@kineticvehicles.com.

About the Progressive Automotive X PRIZE Competition:

The goal of the Progressive Automotive X PRIZE, a project of the X PRIZE Foundation, is to inspire a new generation of viable, super fuel-efficient vehicles that offer more consumer choices. Ten million dollars in prizes will be awarded to the teams that win a stage race for clean, production-capable vehicles that exceed 100 MPGe.

The Progressive Automotive X PRIZE will place a major focus on affordability, safety, and the environment. It is about developing real, production-capable cars that consumers want to buy, not science projects or concept cars. This progress is needed because today's oil consumption is unsustainable and because automotive emissions significantly contribute to global warming and climate change.

For more information about the Progressive Automotive X PRIZE, please visit www.progressiveautoxprize.org or email progressiveautopress@xprize.org.

About Progressive:

Progressive, founded in 1937, is one of the country's largest auto insurance groups and a leading insurer of motorcycles, recreation vehicles, boats, and commercial vehicles. The Company offers competitive rates and innovative products and services that meet drivers' needs throughout their lifetimes as well as 24/7 online and in-person customer and claims service.

One of Progressive's Core Values is Excellence. To the Company's more than 27,000 people, it simply means seeking constant improvement. Over time, this has meant introducing revolutionary ideas that make car insurance easier to shop for, buy and use. It's this same innovative spirit that's behind the Company's sponsorship of the Progressive Automotive X PRIZE. The Progressive Automotive X PRIZE will inspire innovation that will produce more fuel efficient vehicle choices, helping to make a difference in people's lives.

Progressive's products and services are available locally through more than 30,000 independent insurance agencies in the U.S., online at http://www.progressive.com and by phone at 1-800-PROGRESSIVE (1-800-776-4737).