Hyliion Executes a Letter of Intent to Provide KARNO™ Generators to GTL Leasing

Hyliion Holdings Corp. (NYSE: HYLN), a developer of sustainable electricity producing technology, today announced that it has entered into a non-binding letter of intent with GTL Leasing LLC (GTL) for the deployment of KARNO generators. The largest high-pressure gas transport leasing company in the US, GTL will bring the KARNO technology to California as a mobile EV charging solution for its customers where adequate power is not currently available.

GTL will be a part of Hyliion’s early adoption program of the KARNO generators with an initial commitment of two generators. Deliveries for the program will begin in late 2024. Upon successful deployment, GTL intends to scale adoption of KARNO units as they expand their portable EV charging business.

“Customers are eager to adopt EVs, but often struggle to deploy initial charging infrastructure on a schedule that matches their vehicle adoption plans,” said Michael Koonce, CEO of GTL. “In California and many other states, fleets often face multi-year delays to secure a connection to the utility grid. We are, essentially, the starter kit or interim solution for customers’ EV power needs.”

As a full solution provider, GTL will be offering a complete package which includes a KARNO generator, battery buffer, EV chargers, and maintenance services on a lease basis. These generators are expected to be capable of operating on both hydrogen and natural gas, enabling customers to choose which fuel best fits their economic and environmental initiatives.

National Renewable Energy Laboratory (NREL) anticipates that 182,000 new fast-charging ports will need to be deployed across the US by 2030 to match the growing adoption of EVs. Each KARNO generator is expected to produce enough electricity to supply approximately two fast-charging ports.

"The strategic collaboration with GTL marks a significant milestone in the commercialization of the KARNO generator, as it will provide a valuable use case of easily deployable EV charging coupled with power generation," stated Thomas Healy, Founder and CEO of Hyliion. "This partnership highlights our commitment to advancing sustainable electricity production and showcasing the capabilities of the KARNO generator in an ever-growing market."

The sale of these early KARNO generators is subject to the execution of a binding purchase agreement between the parties. For more detailed information about Hyliion and the KARNO generator, please visit www.hyliion.com.

About GTL Leasing LLC

GTL Leasing was established in 2013 and has grown exponentially over the last ten years to become the largest lessor of composite cylinder-based gas transports. Though hydrogen transports represent the majority of GTL’s fleet, GTL leases trailers for breathing air, natural gas, and nitrogen applications. As an operating lease company, GTL can provide its customers with short- and long-term leases in addition to supplying maintenance services with its own in-house service team. GTL has facilities in Tulsa, Oklahoma and Livermore, California.

About Hyliion

Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company’s primary focus is to provide distributed power generators that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, OH, Hyliion is addressing the commercial space first with a locally-deployable generator that can offer prime power, peak shaving, and renewables matching. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine. The KARNO generator is a fuel-agnostic solution, enabled by additive manufacturing, that leverages a linear heat generator architecture. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy. For further information, please visit www.hyliion.com.

Forward Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage the Company with a history of losses, and our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business, and the other risks and uncertainties described under the heading “Risk Factors” in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2023 for the year ended December 31, 2022 and Form 10-Q filed with the SEC on November 8, 2023 for the quarterly period ended September 30, 2023. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could different materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion’s operations and projections can be found in its filings with the SEC. Hyliion’s SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.

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