Fuel Systems Solutions Reports Third Quarter 2011 Results

Third Quarter 2011 Revenue of $99.8 Million - Loss per Share of $0.02 Includes $1.7 million in Relocation Costs

NEW YORK, N.Y., November 9, 2011 -- Fuel Systems Solutions, Inc. (Nasdaq: FSYS) reported results for its third quarter and nine months ended September 30, 2011.

Mariano Costamagna, Fuel Systems’ CEO, said, “Our third quarter revenue grew 16% to $99.8 million and we reported gross margin of 24% as our industrial business delivered another solid quarter and our aftermarket business grew further. While our revenue mix continued to shift from prior year comparisons we continue to gain traction in newer markets. IMPCO Automotive’s recently announced selection as the Tier-One supplier for General Motors’ new CNG bi-fuel commercial pickup truck that will begin late in 2012, as well as increasing volumes from our partnerships in Asia/Pacific and Latin America, exemplify these new market opportunities. We have also made the decision to consolidate our automotive business in The Netherlands into our Italian facilities. 2011 remains an investment year as we focus on building our North American automotive operations while addressing our entry into developing markets with appropriate local strategies.”

Third Quarter Financial Results

Revenue for the third quarter of 2011 was $99.8 million compared to $86.1 million in the third quarter of 2010. The revenue increase is primarily attributable to the strength in the industrial markets and a $7.5 million increase due to foreign exchange rates.

During the third quarter, Fuel Systems incurred $1.7 million, in costs associated with the relocation of a portion of the automobile business (GFI) from The Netherlands to Italy. This portion of the automotive business will be included in the BRC segment beginning with fourth quarter 2011 results.

Gross profit for the third quarter 2011 was $23.9 million, or 24% of revenue, compared to $24.8 million, or 29% of revenue a year ago, reflecting changes in the mix of transportation and industrial revenue, relatively lower margins in the US automotive business, and $0.9 million associated with the non-cash write-offs from the GFI business relocation. Operating income for the period totaled $1.7 million, or 2% of revenue, compared to $7.5 million, or 9% of revenue, in the third quarter of 2010, reflecting greater R&D and SG&A expenses than last year’s quarter as the Company has completed four acquisitions and continues to invest in new technologies, and including $0.8 million in SG&A expense associated with severance and other costs resulting from the GFI business relocation.

Net loss for the third quarter 2011 was $0.4 million, or $0.02 per diluted share, compared to net income of $5.2 million, or $0.29 per diluted share in the third quarter 2010. The net loss was driven by an effective tax rate for the quarter in excess of 100% of pretax income, which is a result of the taxable income in various jurisdictions combined with losses incurred in the United States and certain foreign jurisdictions for which no tax benefit has been recorded.

On a segment basis, third quarter 2011 revenues from BRC Operations increased 18% to $63.0 million, compared to $53.2 million from the same quarter a year ago, and revenues from IMPCO Operations increased 8% to $39.0 million from the same quarter a year ago. BRC third quarter 2011 operating income was $4.6 million compared to $3.7 million in the same period a year ago; IMPCO third quarter 2011 operating loss was $1.7 million, which reflects the start-up nature of and continued investment in the US automotive market and abovementioned relocation costs, compared to operating income of $5.1 million in the same period a year ago. A table presenting operating segment data can be found in the tables below.

Nine Months Ended September 30, 2011 Financial Results

Total revenue was $307.2 million compared to $347.5 million for the nine months of 2010. Net income for the nine months of 2011 was $3.8 million, or $0.19 per diluted share, compared to $40.1 million, or $2.27 per diluted share, for the nine months 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 is updating its 2011 outlook, which expects: the current mix of revenue to continue; continued positive demand in the automotive business; stable trends in the IMPCO’s division’s industrial business; and continued investments for growth in the U.S. automotive business, which are expected to negatively impact the outlook for gross and operating profitability. The Company now expects:

• Full year 2011 revenue of $390 million to $410 million;
• 2011 gross margin of 23% to 24%, at the lower end of its prior outlook for 23% to 25%;
• 2011 operating margin of 4% to 5%, a revision from the prior outlook for 5% to 7%;
• The outlook for gross and operation margin includes the effect of the third quarter 2011 GFI relocation charges.

The company continues to target gross margin in excess of 25% and EBITDA margins in the mid-teens as its new markets begin to develop and operate in a more efficient manner over the medium term.

Pietro Bersani, Fuel Systems’ CFO, stated, “Fuel Systems’ industrial business continued to perform well in the third quarter, particularly as demand for auxiliary power units and mobile products increased. The aftermarket automotive business continues to benefit globally from the disparity in pricing of gasoline and natural gas, as well as from economic pressures in some European geographies that provide further incentive to invest in lower cost fuel solutions. We remain focused on investing for growth in emerging markets and believe these investments, in addition to our current mix of business, will position us for future growth.”

Conference Call

The Company will host a conference call today, November 9^th at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss its third 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 17854815. 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 November 11^th by dialing 855-859-2056 or 404-537-3406 and entering pass code 17854815. 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; unanticipated litigations; 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.