Fuel Systems Solutions Reports Second Quarter 2011 Results

Second Quarter 2011 Revenue of $116.6 Million and EPS of $0.19

NEW YORK, N.Y., August 9, 2011 -- Fuel Systems Solutions, Inc. (Nasdaq: FSYS) reported results for its second quarter and six months ended June 30, 2011.

Mariano Costamagna, Fuel Systems’ CEO, said, “Our second quarter 2011 revenue of $116.6 million and gross margin of 23% represent continued solid operational execution and the benefits of our more balanced revenue diversification. Our industrial business grew for the fourth consecutive quarter, contributing to increased profitability, and our aftermarket business replaced existing DOEM opportunities and gained momentum in many geographies. For the remainder of the year, we plan to prudently invest in our global opportunities to build sustainable, profitable growth.”

Matthew Beale, Fuel Systems’ Co-President, said, “Second quarter volume trends were stronger than first quarter levels, with aftermarket demand partially offsetting OEM/DOEM demand, as we continue to benefit from our demonstrated ability to fulfill demand for bi-fuel systems through multiple distribution channels. The sequential improvement in our operating profitability reflects stronger revenue contributions in our businesses, as we carefully manage costs and as the trends in the industrial business remain positive. We generated nearly $18 million in operating cash flow in the quarter, while we invested the capital raised in 2010 into our U.S. strategic and technological positioning. The emerging US automotive market continues to develop while our investments in Latin America and Asia are now paying off in customer order growth. Given our results reported to date and 2011’s transitional nature as we balance investment with growth, our 2011 outlook remains unchanged. For the remainder of the year, we are focused on excellence in execution, cost management, and continued investment for growth in our portfolio of businesses.”

Second Quarter Financial Results

Revenue for the second quarter of 2011 was $116.6 million compared to $99.8 million in the second quarter of 2010. The revenue increase is primarily attributable to the strength in the industrial markets and an $11.5 million increase due to foreign exchange rates. Gross profit for the second quarter 2011 was $27.1 million, or 23% of revenue, compared to $25.7 million, or 26% of revenue a year ago, reflecting changes in the mix of transportation and industrial revenue and lower margins in the US automotive business. Operating income for the period totaled $6.4 million, or 6% of revenue, compared to $9.3 million, or 9% of revenue, in the second quarter of 2010, and reflects greater R&D and SG&A expenses than last year’s quarter as the Company has completed five acquisitions and continues to invest in new technologies.

Net income for the second quarter 2011 was $3.8 million, or $0.19 per diluted share, compared to $6.9 million, or $0.39 per diluted share in the second quarter 2010.

On a segment basis, second quarter 2011 revenues from BRC Operations increased slightly to $74.7 million, compared to $73.0 million from the same quarter a year ago, and revenues from IMPCO Operations increased 47% to $43.6 million from the same quarter a year ago. BRC second quarter 2011 operating income was $5.9 million, compared to $7.2 million in the same period a year ago; IMPCO second quarter 2011 operating income was $1.8 million, which reflects the start-up nature of and continued investment in the US automotive market. This is compared to $3.1 million in the same period a year ago. A table presenting operating segment data can be found in the tables below.

Six Months Ended June 30, 2011 Financial Results

Total revenue was $207.4 million compared to $261.4 million for the first half of 2010. Net income for the first half of 2011 was $4.2 million, or $0.21 per diluted share, compared to $34.9 million, or $1.98 per diluted share, for the first half of 2010. The decrease in 2011 versus the prior year is primarily attributable to the expiration of the Italian Government’s 2009 incentive program in early 2010.

Company Outlook

Fuel Systems affirms its 2011 outlook, which calls for continued soft European automotive trends and a continued strengthening in the IMPCO business. As revenue growth and cost efficiencies gain traction during the year, the Company expects full year 2011 revenue to be between $375 million and $400 million and expects 2011 gross margin of 23% to 25% and 2011 operating margin of 5% to 7%. The company’s gross margin target continues to be in excess of 25% and mid-teen EBITDA margins over the medium term.

Conference Call

The Company will host a conference call today, August 9^th at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss its second quarter 2011 financial results and other matters. 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 conference ID will be 83869672. 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 Eastern Time on August 11^th by dialing 855-859-2056 or 404-537-3406 and entering pass code 83869672. 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 outlook for 2011, as well as its position in the market place, 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, our ability to integrate recently acquired businesses and to realize the expected synergies; economic uncertainties caused by political instability in certain of the local markets we do business in; the potential growth of non-gaseous alternative fuel products and other new technologies; currency rate fluctuations and devaluations; our ability to realign costs with current market conditions; potential changes in tax policies and government incentives and their effect on the economic benefits of our products to consumers; the weakness in financial and credit markets and the economy; and the repeal or implementation of government regulations relating to reducing vehicle emissions. Readers also should consider the risk factors set forth in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K, for the year ended December 31, 2010. The Company does not undertake to update or revise any of its forward-looking statements or guidance even if experience or future changes show that the indicated results or events will not be realized.

About Fuel Systems Solutions

Fuel Systems Solutions (Nasdaq: FSYS) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems’ components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company’s advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by

electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. The Company is composed of two operating subsidiaries: IMPCO Technologies and BRC. IMPCO

Technologies is a leader in the heavy duty, industrial, power generation and stationary engines sectors and recently established a U.S. Automotive division. BRC is a leader in the light duty and automobile alternative fuel sectors and has established alliances with several major automobile manufacturers for OEM projects. Additional information is available at www.fuelsystemssolutions.com.

(1) Represents corporate expense not allocated to either of the business segments.