Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in electrified powertrain solutions for Class 8 semi-trucks, today reported its second quarter 2021 financial results.

Key Business Highlights

• Hired Dennis M. Gallagher as Chief Operating Officer, an experienced industry executive, with a proven track record in the heavy-duty commercial vehicle space

• Announced a 300-unit Hypertruck ERX product reservation agreement from Detmar Logistics, an industry-leading oilfield logistics company

• Continued to execute on the Multi-Phase Product Development Program used to reach commercialization of the Hypertruck ERX powertrain

• Announced a longer-range all-electric configuration mode that will meet California’s Advanced Clean Truck Rule and qualify for ZEV sales credits

• Improved Hybrid product on track to launch in the latter part of 2021

• Strong balance sheet with sufficient liquidity available to fund current commercialization plans for Hybrid and Hypertruck ERX

Executive Commentary

Thomas Healy, Hyliion’s Founder and Chief Executive Officer, said, “After a strong start to the year, our team continues to execute effectively against the timelines for both Hybrid and Hypertruck ERX products. With the unveiling of our improved Hybrid powertrain and the debut of our Hypertruck ERX demo units both scheduled for the third quarter of 2021, we are at an exciting inflection point in Hyliion’s history.”

“As we make progress on the commercialization of our Hypertruck ERX, I am very pleased to announce the recent appointment of Dennis M. Gallagher as our Chief Operating Officer who will be responsible for all commercialization efforts within Hyliion. Dennis recently served as President of Jacobs Vehicle Systems, an industry-leading supplier to the heavy-duty commercial vehicle market. He brings over 20 years of tenure at Danaher, where he led various global business units and has a proven track record of commercial and operational excellence.”

“Beginning later this year, we plan to take Hypertruck ERX demonstration units on the road to showcase them with our Hypertruck Innovation Council members and other interested fleets. As fleets experience the benefits of our Hypertruck ERX firsthand, like improved driver experience, improved performance versus diesel, and the means to reduce operating costs while offering the ability to reduce carbon emissions more than any other alternative fuel option available now or in the works, we expect customer interest and excitement to continue to grow.”

Hypertruck ERX Commercialization Progress and Product Reservations

Hyliion remains on track with its Hypertruck ERX commercialization timeline, which involves showcasing demo trucks to fleets late in 2021, followed by evaluation and testing throughout 2022. The Hypertruck ERX is projected to be commercially available in late 2022 and followed by volume ramp up.

Hyliion recently announced a reservation for 300 Hypertruck ERX units from Detmar Logistics, a leading oilfield logistics company. An early adopter of electrification solutions in the industry, Detmar placed an initial order of 10 Hyliion Hybrid Electric units earlier this spring. The successful program and deployment met with positive feedback from Detmar’s operations team, drivers, and customers, and generated further interest in the Hypertruck ERX solution and a longer-term commercial relationship with Hyliion. The purchase and sale of the 300 Hypertruck ERX units is subject to the execution of a final agreement between Hyliion and Detmar.

Hypertruck ERX Long-Range Configuration Qualifies for CA’s ACT Rule

In late July, Hyliion announced a long-range variant of the Hypertruck ERX that will offer 75 miles of all-electric range. This new configuration will enable the production vehicle to qualify for zero-emission vehicle (ZEV) sales credits by meeting California’s Advanced Clean Truck (ACT) Rule. The ACT Rule, approved by the California Air Resources Board in June 2020, requires Class 8 truck tractor manufacturers to sell ZEVs in California. Truck manufacturers will be able to achieve up to a 75% ZEV sales credit by selling a Class 8 truck with the Hypertruck ERX electric powertrain. Taking a modular approach to the platform to meet OEM demand, address fleet needs and satisfy government mandates, the production Hypertruck ERX will be available in multiple configurations, including a reduced electric range model that will follow the release of the long-range version. Both configurations will offer over 1,000 miles of total range when using the onboard generator to recharge the battery pack.

Commercial Hybrid Launch

Hyliion is currently finalizing its improved Hybrid electric powertrain and is on track to launch during the latter part of 2021. This improved hybrid electric powertrain includes several enhancements to make the product more attractive to potential customers while also simplifying the installation process. After the launch of the improved Hybrid product, the company will begin to recognize revenue on the units.

Financial Highlights and Operating Expense Guidance

Hyliion ended the second quarter 2021 with $317.7 million in cash and cash equivalents on its balance sheet. Including short-term investments of $140.0 million and long-term investments of $159.7 million, Hyliion had over $617 million available to fund its current commercialization plans for its Hybrid and Hypertruck ERX powertrains.

While Hyliion expects to begin generating revenue from its improved Hybrid product after launch later this year, it does not expect the revenue generated in 2021 to be material.

Hyliion expects full year 2021 operating expenses to range between $130 million and $140 million, a reduction compared to previously disclosed guidance of approximately $140 million. This consists of SG&A and R&D expenses.

Second Quarter 2021 Conference Call

Hyliion will host a conference call and webcast for investors and other interested parties to review its second quarter 2021 financial results on Wednesday, Aug. 11, 2021 at 11:00 a.m. Eastern Time. A live webcast of the call, as well as an archived replay following, will be available online on the Investor Relations section of Hyliion’s website. Those wishing to participate can access the call using the links below:

Conference Call Online Registration: http://www.directeventreg.com/registration/event/1449669

Webcast: https://investors.hyliion.com/events-and-presentations/default.aspx

Second quarter 2021 financial results for Hyliion Holdings Corp. (f/k/a Tortoise Acquisition Corp.) on a consolidated basis will also be filed with the SEC on Form 10-Q.

About Hyliion

Hyliion’s mission is to reduce the carbon intensity and greenhouse gas (GHG) emissions of Class 8 commercial trucks by being a leading provider of electrified powertrain solutions. Leveraging advanced software algorithms and data analytics capabilities, Hyliion offers fleets an easy, efficient system to decrease fuel and operating expenses while seamlessly integrating with their existing fleet operations. Headquartered in Austin, Texas, Hyliion designs, develops, and sells electrified powertrain solutions that are designed to be installed on most major Class 8 commercial trucks, with the goal of transforming the commercial transportation industry’s environmental impact at scale. For more information, 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, Hyliion’s ability to disrupt the powertrain market, Hyliion’s focus in 2021 and beyond, the effects of Hyliion’s dynamic and proprietary solutions on its commercial truck customers, accelerated commercialization of the Hypertruck ERX, the ability to meet 2021 and future product milestones, the impact of COVID-19 on long-term objectives, the ability to reduce carbon intensity and greenhouse gas emissions and the other risks and uncertainties set forth in “Risk Factors” section of Hyliion’s annual report on Form 10-K/A filed with the Securities and Exchange Commission (the “SEC”) on May 17, 2021 for the year ended December 31, 2020. 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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