Balqon Corporation Enters European Electric Yard Tractor Market

HARBOR CITY, Calif.--(EON: Enhanced Online News)--Balqon Corporation (OTCBB: BLQN), a developer of electric drive system technologies for commercial electric vehicles, today announced the successful demonstration of a battery powered all electric yard tractor that incorporates Balqon Corporation’s XR E20 electric drive system into a chassis developed by Mol Transport Solutions, a leading manufacturer of trucks, trailers and waste management systems in Europe. This new model incorporates the latest drive system and battery management system technologies currently used on Balqon Corporation’s Nautilus XR E20.

“High fuel costs and environmental laws that are favorable to clean energy make Europe an attractive market for Balqon Corporation’s heavy-duty electric vehicles and drive systems”

Balqon Corporation believes that the operating costs of the European yard tractor will be 74 percent lower than the operating costs of its conventional diesel competitors, making the European yard tractor a cost-effective alternative in warehouse and marine port applications in Europe, especially in light of current average diesel fuel prices in Europe of approximately $7 per gallon. The European yard tractor incorporates Balqon Corporation’s proprietary electric vehicle drive system, which encompasses complete power management, propulsion, and power conversation systems and includes drive trains and energy systems (i.e., batteries and a charging system). The new product also incorporates an European chassis that features an ergonomic cabin design and air bag suspension.

“High fuel costs and environmental laws that are favorable to clean energy make Europe an attractive market for Balqon Corporation’s heavy-duty electric vehicles and drive systems,” said Mr. Balwinder Samra, President and CEO of Balqon Corporation. “The product, which Balqon Corporation jointly developed with MOL Transportation Solutions, a strategic partner based in Europe, is the first in the zero emissions heavy-duty tractor market in Europe, marks, what we believe to be, the beginning of a shift to zero emissions container movement vehicles in the continent.”

The European yard tractor can tow loads over 30 tons with a range of over 16 hours of operation on single charge. The vehicle also demonstrates below 69 db in noise level and incorporates the latest idle-shut off technologies that increase energy conservation during vehicle idling. The new vehicle incorporates Balqon Corporation’s proprietary battery management system and charging systems that are compliant with current European safety standards.

About Mol Transport Solutions
Founded in 1944, Mol Transport Solutions is a developer of high quality container chassis for all types of containers, tipper designs, RO-RO tractors, refuse vehicle bodies, rail yard switchers and other heavy duty vocational products. The company also provides subcontract manufacturing services related to fabrication of custom vehicles such as fire trucks, military transport vehicles and refuse vehicles. A team of 500 employees and specialized technicians are responsible for after-sales service, nationally and internationally. Mol has ISO 9001-2000 certification, a Caterpillar Certified Supplier label and the CNH Quality Award. These accreditations are the outcome of the company’s permanent quality assurance and constant refinement of production methods.

About Balqon Corporation
Headquartered in Harbor City, California, Balqon Corporation is a leading developer of zero-emissions electric drive systems, lithium battery systems and medium to heavy-duty electric vehicles. Balqon's proprietary electric drive system encompasses complete power management, propulsion, flux vector motor controllers and energy systems. Balqon’s electric vehicles and drive systems are marketed globally to companies, governments and municipalities looking for viable and effective ways to reduce their vehicle maintenance and operating costs and lower carbon emissions. Balqon is recognized as a pioneer in commercial electric vehicle technology and development of energy efficient transportation solutions. For more information, please visit www.balqon.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release, including without limitation, the commercial viability of Balqon Corporation’s European yard tractor in the European market, whether the European yard tractor is a cost effective alternative to its diesel competitors, whether the yard tractor has lower operating costs than diesel yard tractors with similar functionality, whether the introduction of Balqon’s yard tractor will mark a shift towards the use of zero emissions container movement vehicles in Europe and the ability of Balqon Corporation to develop a presence in Europe for its product offerings are forward looking statements that involve a number of risks and uncertainties. The actual future results of Balqon Corporation could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, customer acceptance of the European Yard Tractor; unforeseen technical issues; the ability of Balqon Corporation to develop a market presence in Europe, including the ability of Balqon Corporation and Mol Transport Solutions to introduce new products and zero emissions technologies to European customers; Balqon Corporation's ability to attract sufficient capital and labor to manufacture its products; the ability of Balqon Corporation to attract and retain talented individuals; adverse economic and market conditions; the projected future demand for Balqon Corporation’s products, including yard tractors and drive systems; changes in technology and governmental regulations and policies; and other events, factors and risks previously and from time to time disclosed in Balqon Corporation's filings with the Securities and Exchange Commission, including, specifically, those factors set forth in the "Risk Factors" section of Balqon Corporation’s most recent Annual Report on Form 10-K and Quarterly Report for the three and six months ended June 30, 2011 filed with the Securities and Exchange Commission.