ST. PAUL, MN (January 12, 2004)- Generator set dealers are going into 2004 for with leaner inventories and more sales prospects than they have seen in a couple of years. U.S. and Canadian gen set dealers reported that they expect gen sets sales to increase in the recently updated PowerTracker™ survey. Most of the dealers reported that the Y2K problem, which actually turned out to be large inventories, is now behind them. While sales increases have been modest, quotes and inquiries are up significantly fueling the optimism for 2004. Business and consumer respondents confirm the dealer optimism. More businesses reported considering adding gen sets than at any time over the past two years and consumers are also looking more seriously at gen sets for standby and portable power. Dealer survey respondents also indicated they sold 9.5% percent more units in the last quarter of the year than they did the previous quarter and that represents an increase of 15% over the same quarter one year ago. Most categories have shown improvement with the strongest increases in the 100 to 300 kW and 500 to 1000 kW power ranges. Consumers increased purchases of gasoline portables in the range under 20 kW by 10%.

Many of the survey respondents reflected on the massive power outages experienced in the Eastern part of the U.S. and Canada as a motivator for their decision to get more serious about buying or investigating the purchase of a generator set for standby purposes. This is an attitude reversal from a trend that has gone the other way since the Y2K boom and the California power shortages.

Over the past two years respondents to the PowerTracker™ survey have been reflecting a declining level of concern over electrical power supply reliability. Comparing this concern level to gen set shipments reported by survey respondents shows it to be a good leading indicator.

PowerTracker™ monitors the market developments for all engine-powered generator sets sold in the United States and Canada. Gen set dealers, distributors, business consumers and household consumers are surveyed quarterly to determine their short-term expectations for the market. PowerTracker™ analyzes market activity and industry developments for various gen set applications, brands and customer groups. The core data for this gen set study originates from a series of 1400 interviews conducted on a quarterly basis with potential and actual users of gen sets as well as key dealership and distributor personnel. Further information about this survey and other MarketTracker™ surveys is available at http://www.powersys.com/sur_track.html.

Power Systems Research is a global market research and consulting company specializing in the engine, original equipment, and components industries. Since the company was founded in 1976, Power Systems Research has been the authoritative source of market information and business intelligence to the power products and drivetrain industry. Power Systems Research is headquartered in St. Paul, Minnesota and provides market data and customized project work to the world's leading vehicle and equipment OEMs and component suppliers. The company has a global presence with operations in Detroit, Brussels and Tokyo. Further information is available at http://www.powersys.com.